Creating a Family Budget
We're going to talk about creating a family budget. Now, I don't like budgets. I don't like anybody telling me what I can and can't spend. I don't know if that's a defect or whatever it is. I know some of you love budgets. You love to track things and so on. One of the things Wendy and I have always done is we've saved first so we can spend what's left. So, if you're younger, let's say you're in your 30s and 40s watching this, that's a great strategy. You save 10 or 15% off the top, we'll talk about that in a few minutes here, and then you can spend what's left.
I would say it's really an advantage, no matter what philosophy you take here to create some type of a family budget. And let's talk about the power of budgeting. Number one, sometimes it just helps to know where you're spending your money. You've probably heard about people that keep a little financial diary, one of those old reporters notebooks where they flip open and you write things down and you write down that you got a Starbucks on the way to work, and that was $4 or $5, or if you get one of the real fancy ones, maybe it was six or seven bucks.
You go out to lunch every day, on the way home you stop and maybe get together with some friends for a drink and you end up realizing what you actually spend in money. There's a book out there called The Latte Factor, where it talks about if you just don't buy a cup of coffee every day how much you save. And again, I don't like to live that way personally, but I think it's really enlightening to at least track your expenses for a month or two. What you'll find out is that you are probably spending somewhere between 100 and $300 per month on stuff that you really don't need to.
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Music credit: : "Come On Up The Mountain (No Oohs & Ahhs) - Instrumental" by Renegade
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