SAVE MONEY! Household Budgeting Support: Step 1

Here We Deep Dive into Step 1: Tracking Your Spending

Gathering Information

Bank Statements and Receipts: Request paper or online access to your bank statements for the past 3 months. Gather any physical receipts you have readily available. 

Bills: Collect copies of your recent utility bills, rent/mortgage statements, and any recurring service bills (internet, phone, etc.).

Online Resources:

Free Budgeting Apps: Explore free budgeting apps like Mint ([https://mint.intuit.com/](https://mint.intuit.com/)), You Need a Budget (YNAB) ([https://www.ynab.com/](https://www.ynab.com/)), or Mvelopes ([https://financebuzz.com/mvelopes-review](https://financebuzz.com/mvelopes-review)). These tools automatically categorise your spending and offer helpful visualizations.

Printable Tracking Sheets: Many personal finance websites offer free printable budget trackers. Look for options that allow you to categorize expenses and track them over a month. 

Community Resources:

Local Libraries: Librarians can guide you towards free budgeting resources and online tools. They might even offer workshops on personal finance management.

Non-profit Credit Counseling Agencies: Organisations like the National Foundation for Credit Counseling ([https://www.nfcc.org/](https://www.nfcc.org/)) offer free or low-cost financial counseling and budgeting guidance.

Categorizing Expenses

Here are some key spending categories to consider:

Housing: Rent/mortgage payment, property taxes, homeowners/renters insurance, utilities (electricity, gas, water, trash collection).

Food: Groceries, dining out, meal delivery services.

Transportation: Car payment, gas, car insurance, public transportation costs.

Debt Payments: Minimum payments for credit cards, loans, etc.

Healthcare: Medical bills, prescriptions, health insurance premiums (if not covered by benefits).

Personal Care: Clothing, haircuts, toiletries.

Entertainment: Subscriptions (streaming services, magazines), eating out, hobbies, vacations.

Education: School supplies, childcare costs, continuing education.

Savings: Emergency fund contributions, retirement savings.

Miscellaneous: Gifts, donations, bank fees, etc.

What can you lose? What can be reduced? 

Tracking for a Month

Choose Your Tracking Method: Decide on your preferred method – budgeting app, spreadsheet, or paper tracker. 

Daily Recording: Make a habit of recording your expenses daily.  Use your bank statements, receipts, or memory to accurately track spending. 

Be Honest: Track all your expenses,  including small purchases like coffee or snacks. 

Review Weekly: Spend a few minutes each week reviewing your spending and comparing it to your planned categories. 

Tips for Effective Tracking:

Set Reminders: Set calendar reminders or phone notifications to nudge you to record your daily expenses.

Involve the Family: If you have older children, involve them in the tracking process to teach them valuable budgeting skills.

Be Patient: It might take a month or two to fully capture your spending habits. Don't get discouraged if your initial tracking feels overwhelming.

Remember: Consistency is key. The more diligently you track your spending, the more accurate picture you'll have of your financial situation.  By taking these steps, you'll be well-equipped to move on to the next phase of creating a budget that works for your family.