I've been keeping track of our expenses and income for nearly two years now. (The first year's data helped me to create a budget based on our real life expenses.) I recently created a table which breaks down our expenses by month and category. I used this information last week to figure out that from January through July of 2010, we were in the red about $2500. (We spent $2500 more than we made.)
Knowledge truly is power.
So, I've set the goal to reduce our expense overage by 50% for the period of August to December 2010. More would be great, but unrealistic at the moment. It would be cool to check in at the 3/4 mark, the end of September, and if we were successful, to make a push to reduce the overage more for the last quarter of the year. We shall see.
I decided to start very concretely and relatively small (not so much in amount of money, but in amount of mental space). Our groceries budget is $1000 for the month, $250 per week. From January through July of this year, we went over budget by an average of $343 per month or $86 per week.
This morning I filled in a meal plan (I have a template that I photocopy), made a shopping list and went food shopping by myself (it is always nice to have time at home on the weekend to do things like meal plan and then food shop without kids...FYI, after dinner on Saturday nights/early on Sunday mornings supermarkets tend to be pretty empty).
I went off-list for three things: two staple items I hadn't thought of while making my list, and a coconut water for myself to rehydrate after a particularly nasty food binge last night. I made an effort to stick to the items on the list.
At the register, I used my debit card to pay. I waited to see what the total was, figured the difference between our groceries budget for the week and today's total (there isn't always going to be a difference, but there was one today), and took that amount out of our checking account as cash back.
Once home, I put the cash in one of the pockets of my ADD organizers (see photo above...I pushed the cash down once the pic was taken :-) That is now the amount we have left for the week, for any grocery items.
It feels good to have some strategies come together...progression with awareness feels good, too.








