A budget is a critical part of being able to quit working so you stay home with your kids. Budgeting is also the gateway to peace of mind and financial freedom. A budget will make you look hard at your finances, the ways you are spending money, it will make you examine your priorities and re-align them with your values. A budget will force you to look hard at your debt, and in the process you may just learn a little bit about yourself.
The first thing you need to do is determine how you spend your money and what you are spending it on. Shockingly, many people do not know the answer. If this describes your situation, then start by tracking how you spend your money for one month. Write down everything you spend your money on, including bills. Once you are finished and have completed the month, you need to go over your results with a fine tooth comb. You are now looking for ways to cut your cost, and I would start by looking at the bigger ones like your home, vehicle, insurance and health care.
If your house payment cost more than you can afford, you need to move! Why by tied to a huge mortgage or rent payment when there are other more affordable alternatives. If you can not move, then you need take a look at your financing. Many times there options available to you with re-financing and getting a lower interest rate. This could put hundreds of extra money in bank account each month. I would start with my current lending institution, and if they are not interested I promise you there are several institutions that will be interested as long as you have been paying on time. When you enter into re-negotiating your current mortgage whether it be with your current loan holder or a new one, do your best to avoid paying closing costs and points.
You need to re-evaluate your homeowners insurance. Consider raising your deductible or shop it with other insurance companies. These companies are competitors, and some will have better pricing then their competition.
Is your car payment holding you back or are you driving a vehicle with less than desirable gas mileage? For those that can not pay out right for your car, and financing is your only option, buy a cheap vehicle. Make sure you shop the loan before you are at the dealership. Also, in some cases your bank will re-finance your car to make your payment more attractive. Don't let driving a "certain" car be the difference of making and not making it.
Car insurance can take a big bite out of your monthly budget. You should reevaluate it. What is your deductible? How much would you save by raising your deductible slightly? How much coverage are you paying for? Do you need that much. While your at it, go over your entire policy. What are you paying for and is it necessary. Some times we have things added to our policy that is not necessary and they cost money. While your at make sure you are getting all the discounts they offer. Some insurance companies will provide you a discount for having your car and homeowners policies in the same place. If you are not currently in the workforce, you are very likely driving less than before. As a result, you might be eligible for a discount. If your vehicle older than seven year, it might be worth it to dropping your coverage down to liability and uninsured motorist.
Take a hard look at your health insurance. You would be amazed at the cost of major medical policies for you and your family that you purchase as a consumer. They can be surprisingly reasonable. If your spouse is providing the insurance for the family through their job, look at what your paying and for what! Some employers offer different options to their workforce. Know what those options are, if any, and determine if they are better for your family. I can not stress enough though, DO NOT get rid of health insurance to make ends meet! It is the number one reason for people filing personal bankruptcy.
Looking at these items can be eye opening! Reeling your expenses in and learning to live with a budget is the key. It could be the gateway between you and your desire to stay home with your family. Be aggressive, you will be amazed at what you can save! Remember, when there is a will there is a way!
The first thing you need to do is determine how you spend your money and what you are spending it on. Shockingly, many people do not know the answer. If this describes your situation, then start by tracking how you spend your money for one month. Write down everything you spend your money on, including bills. Once you are finished and have completed the month, you need to go over your results with a fine tooth comb. You are now looking for ways to cut your cost, and I would start by looking at the bigger ones like your home, vehicle, insurance and health care.
If your house payment cost more than you can afford, you need to move! Why by tied to a huge mortgage or rent payment when there are other more affordable alternatives. If you can not move, then you need take a look at your financing. Many times there options available to you with re-financing and getting a lower interest rate. This could put hundreds of extra money in bank account each month. I would start with my current lending institution, and if they are not interested I promise you there are several institutions that will be interested as long as you have been paying on time. When you enter into re-negotiating your current mortgage whether it be with your current loan holder or a new one, do your best to avoid paying closing costs and points.
You need to re-evaluate your homeowners insurance. Consider raising your deductible or shop it with other insurance companies. These companies are competitors, and some will have better pricing then their competition.
Is your car payment holding you back or are you driving a vehicle with less than desirable gas mileage? For those that can not pay out right for your car, and financing is your only option, buy a cheap vehicle. Make sure you shop the loan before you are at the dealership. Also, in some cases your bank will re-finance your car to make your payment more attractive. Don't let driving a "certain" car be the difference of making and not making it.
Car insurance can take a big bite out of your monthly budget. You should reevaluate it. What is your deductible? How much would you save by raising your deductible slightly? How much coverage are you paying for? Do you need that much. While your at it, go over your entire policy. What are you paying for and is it necessary. Some times we have things added to our policy that is not necessary and they cost money. While your at make sure you are getting all the discounts they offer. Some insurance companies will provide you a discount for having your car and homeowners policies in the same place. If you are not currently in the workforce, you are very likely driving less than before. As a result, you might be eligible for a discount. If your vehicle older than seven year, it might be worth it to dropping your coverage down to liability and uninsured motorist.
Take a hard look at your health insurance. You would be amazed at the cost of major medical policies for you and your family that you purchase as a consumer. They can be surprisingly reasonable. If your spouse is providing the insurance for the family through their job, look at what your paying and for what! Some employers offer different options to their workforce. Know what those options are, if any, and determine if they are better for your family. I can not stress enough though, DO NOT get rid of health insurance to make ends meet! It is the number one reason for people filing personal bankruptcy.
Looking at these items can be eye opening! Reeling your expenses in and learning to live with a budget is the key. It could be the gateway between you and your desire to stay home with your family. Be aggressive, you will be amazed at what you can save! Remember, when there is a will there is a way!
About the Author:
A desire to be home with her baby pushed Tracy Martin to find ways to make it happen. Visit her site where she helps women find ways to save money and make money so they can be home with their babyren too.
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