So, grab your bank statement (or print off the most recent from your online banking) and then grab a pen and paper.  Go line by line and categorize what type of expense it was, and how much you spent. For example, you might have the following categories:

• Mortgage
• Credit cards
• Gas/automobile
• Grocery store
• Eating out
• Healthcare/medical
• Insurance
• House bills/utilities
• Clothes
• Miscellaneous

Notice that I list groceries and eating out in separate categories. Most of America eats out way too much (me included if I don’t make a conscious effort!).  Go to Starbucks? Grab a snack at the 7-11 when you get gas? All of those count as eating out!

Now, once you have done this categorizing for the first bank statement, put it away until you get a second bank statement and categorize your spending once again. After two months, you will begin to see a habit. My husband loves Starbucks way too much (daily)…and I love Hershey bars with Almonds from 7-11 (twice weekly).

Now we can beging to purge our spending. Look for ways to cut back or eliminate all together. If my husband cuts down from daily Starbucks to only Saturdays, he save us $9 a week or $36 a month!  If I cut out Hersheys entirely (truthfully my “bottom line” doesn’t need them) then I save $6 a week or $24 amonth.  Together, that is $60 a month we have saved through a little will power and simple steps.

That $60 pays for our water bill or even a presciption or two.  So, you can see how just a few minor adjustments in our spending habits can make a huge difference…but you must know what those spending habits are efore you begin.

So, happy categorizing, friends. And God bless!

If you would like more tips about how to lower your bills and grow your income, check out my best-selling book GPS for Success! (75 pages that are worth your time and money!)

My father was the breadwinner; my mom the CEO of the household. My brothers and I got a small allowance and perhaps a bit extra if we mowed the grass, etc. But, balancing a checkbook or learning how to actually invest money? Forget about it! I have foggy memories of my parents whispering to each other about stocks or a money market, but those vague terms were left to the adults of the household.  So, I grew up poorly equipped to handle my own bank account.

My husband and I spent years going in circles, riding the merry-go-round of living paycheck to paycheck, occasionally borrowing from my parents to pay off a big bill. It felt like a roller coaster that would never allow us to get off. We felt we had to do something, so like any good wife, I threw myself into my family. I read everything I could about  how to handle our finances, how I could cut our outgoing money, and how I could grow a little nest egg. Unfortunately, most financial experts were speaking what sounded like Greek!  I needed somebody who would explain things in plain English…thus Finances for Us was born.

I hope this serves as the tool I want it to be…use it as a resource and a means to improve your family’s financial situation.

God bless and good luck!