6 Ways to take control of your family’s expenses (Part I )
Mom in charge
Control family expenses
Want to keep your spending in check? Here’s a hint: it can be done and get this — it can even be done very well in several simple steps. Just take it from Robert Pagliarini, MSFS, CFP, author of The Six-Day Financial Makeover and president, Pacifica Wealth Advisors, Inc. Forget budgeting, says Pagliarini. Instead he recommends implementing his own PERK system to reduce expenses without budgeting. List all of your expenses and add them together.
here are six ways to control your expenses:
Keep a spending diary
“The only way you can get some insight into your finances is to figure out where your money is going,” he says. For one week, write down where your money goes. He says most people aren’t surprised by big expenses such as rent, gas and insurance, however they’re shocked when they add up the smaller expenses such as entertainment, dining out and shopping. It truly adds up!
Use the envelope method
Some people live by this method which seems kind of retro but works. On a weekly basis withdraw a certain amount of money from the bank (within your budget or slightly below) and tell yourself you’re only allowed to spend money as in cold hard cash from that envelope for the entire week. You’ll be surprised as to seeing how far you can stretch those Benjamins!
