Trimming the Budget

Quite recently, my husband and I achieved a major goal. Three years after paying off our final credit card bill, we paid the last of our student loans. We can finally declare that we are DEBT FREE (minus the house).

{Insert major happy dance}

This milestone was not without sacrifice. From the beginning of our journey out of debt, we knew that things would have to change. Living beyond our means just wasn't going to get us out of the hole we had dug. We started with some major budget cuts.

Examining the budget and making cuts is not just for getting out of debt (although our nation may do well to follow this advice). Other times may call for a budget overhaul such as a sudden job loss, a growing family, or even a divorce. So where do you begin?

The "we can't afford it" excuse, in most situations, is not acceptable in my book. The same people texting on their iPhone and eating out several times a month  "can't afford" any budget cuts. Trimming the fat from monthly spending may be painful, but it's not rocket science.

Sometimes starting small is just enough motivation to keep going. I remember the first few things we cut out after examining our debt: the monthly Netflix account, extra minutes on my cell phone plan, Starbucks runs, then eventually we went really crazy and cut the cable. Believe it or not, we survived. And we saw the impact each small cut had on our shrinking debt.

The grocery bill was another area that was far easier to cut than I realized. My impulse spending at the grocery store was a major issue. Once I learned to shop with a list and how to effectively utilize coupons, the savings kept adding up. Before long, I had a hefty stockpile of essentials and my grocery spending had been cut in half.

The bottom line when it comes to a balanced budget is TRUTH. You must be honest about your spending habits and decide what you can live without. What we truly need to survive and what we want are usually miles apart. Entertainment? High speed internet? Another pair of new shoes? Chances are, you can live without it.

With the holidays approaching, now is the perfect time to examine your budget and trim the fat. Living within our means now will lead to financial security later. As a mom, you can have a major impact on your children's future finances. Will they see you model good stewardship - or wasteful spending?