A few weeks back, I mentioned that Eric and I are attempting to pay off all our debt in 2015. This, as I’m sure you can imagine, is no small task. In order to meet this goal, we’ve had to become extremely cautious about how much money is coming in, where it’s going, and how much is being saved. I will admit it’s not a ton of fun, but watching those student loans roll back closer and closer to $0 each month has been totally worth it.
I know a couple of you fabulous ladies mentioned that you’d be curious to know how we’ve been doing this, so that’s what I want to share with you today. Obviously a budget is a very personal and very complex machine, but I will try and share with you a few of the general basics that have been working for Eric and me. If you have any questions or anything I can further explain to you as far as what we’ve been doing, please feel free to ask in the comment section at the end of this post! I read and respond to them all!
1. Determine how you want to track your expenses.
The first step in starting a budget for your family is to decide what way will work best for you and your spouse to keep tabs on your spending. This is probably the most important step in budgeting…if you aren’t accurately keeping track of what is being spent on what, everything you do in the following steps will be for nothing. How you decide to track your expenses will make all the difference in how well your are able to execute living off a budget. That being said however, you can definitely try a few different methods over the first few months of budgeting until you find something that works best for you. Just because you pick a certain tracking system month one doesn’t mean you have to stick with that forever if it isn’t working well for your family. (more…)