Create a table which itemizes all of your expenses, which shows how much you spend for each item and what percentage of your total income it represents
I was eager to start this one because lately I've been feeling like we've just been spending too much. I go grocery shopping for just the three of us, and it costs me easily about 150 EUR (or $170) a week. That just seems like a lot!
First thing I did, was using my invoices, pay checks and online banking and filled out our complete income and all our expenses in a new excel file and compared them. I think I went through it pretty thoroughly. I obviously wrote down the big expenses, like our mortgage, insurance, health care payments, .. but also expenses that aren't "mandatory", but that we do have regularly. For example, hairdresser (the sad thing about having your first gray hairs when you're only 26), gas for our cars, grocery shopping, doctors appointments, dentist,.. I added them all up and made an extra column to see how much percent each cost was to our income.
Honestly, I was a bit shocked as to how much we're spending each month! Especially with another baby on the way (due in september, yay!) and the daycare costs and everything else that comes with it.
I'm really happy I made this exercise and I've already talked to my husband about small things to change in order to make sure we get to save enough as well!
Can absolutely recommend this to everyone!
Mommy. Wife. List-Lover. More about me: Family Life