Your budget isn’t working. Here’s why.
If you are having trouble with managing your budget, read this.
Before my husband and I got our financial act together, we didn’t have a budget. Since we didn’t have and sort of plan, we spent all of our discretionary income on “wants” and financed anything that cost more money than we had. And the scariest part is that we never really thought much of it. Our income always lasted until the next payday, so we never worried about making ends meet.
But, after years of frivolous spending, we finally snapped out of it. Becoming pregnant with our second child made us start thinking seriously about our financial future, and the impending impact of another mouth to feed actually made us afraid. All of a sudden, we realized that we weren’t kids anymore. Our twenties were spent chasing adventures and spending cash like it was going out of style. And here we were, in our thirties now and on the verge of having two children to take care of. And although we were completely clueless how things had gotten so out of control, we decided that we had to take control of our financial destiny.
An unfortunate truth
We started by combing over several months of bank statements, and what we uncovered was almost unbelievable. We quickly realized that we were spending over $1000 per month on groceries for two adults and a baby. We were also going out to dinner a lot. The truth is, we were actually eating most of our expendable income. We aren’t fancy folks, but we do happen to enjoy some expensive meals and ingredients. And we weren’t enjoying them in moderation; we were eating like a king and queen on a daily basis, and our pocketbooks showed it.