How can my Wife and I get ahold of our spending habits?

Question

We have a hard time saving money. I have great ideas and budget making abilities, but we just enjoy making those small purchases on a daily basis that add up at the end of the month. According to my budget, we should have nearly $500 extra every month after having some spending cash and entertainment funds. But we always end up with nothing.

We disagree at times about what is a 'need' and a 'want' purchase. How can we get on the same track and start saving and realize that we can save for things we want, pay bills first and prioritize. I know what we need to do, just looking for some more tips to get focused.

Answer 1

Each of you keep a little book where you record everything you spend money on, from gas to clothes, to a pack of gum or cup of coffee.  Then you can go over the books at the end of the week and see exactly where the money goes.  This can help a lot, when you can see that you spent $30 in a single day on things you don't need.  Then try to decide together where you can cut back.  She can't live without her Starbucks?  Then she has to give up lunch out.  You like getting the daily donut at Dunkin'?  Then you have to stop buying a magazine everyday.  I don't know what you actually do buy, but you get the idea.  Don't try to cut it all back at once, just try to remove one or two things that each of you splurge on regularly.

Answer 2

I am like your wife.

And I had to have my husband take over our money.  

I can justify so many things when it comes to money, and I always say.." oh, this is the last thing' and just keep saying that until i have been to dinner 4x's that week and I have taken $40 trips to target 3 times that week.

Just take over the finances and give your wife a separate debit card with just her spending and gas money on it.

At first its hard to get used to and I felt upset. (even though it was MY idea) however, after a few weeks of seeing our savings go up. It became a game to me. And I enjoyed seeing just how far I could get my money to strech.

Of course, this is assuming you are going to follow the same spending principles. If your not, this isn't going to work.

Answer 3

Its really easy to rack up the bills with all those little things, like an extra large coke, a few songs from the internet and so forth.

The best way to control your spending is to become more conscious about everything you are spending your money on. I have a budget that details everything from eating out, drawing cash and so forth. This will help you see where all the money is truly going to help you know where to cut. Those $2 cups of coffee do add up.

I also set up a savings account that automatically draws a couple of hundred out of my checking a month, which I already assume is money I never earned. Plus, I only have one credit card which I reduced the maximum limit to prevent myself from over spending.

Answer 4

make a budget in excel. insist on typing in what you spend every day. it really does help.

Answer 5

If you are affiliated with a church, of your choice, please check to see if they have a program for this same issue. Many do have this. Good luck.

Answer 6

First both of you have to be on the same page. Setting up an automatic deposit from your check to a savings account works pretty good. Don't deposit too much because you don't want to be forced to dip in for anything. Make a rule never to withdraw from the savings account. You guys will see a big improvement good luck!

Answer 7

My husband and I have gone on a "cash only" system.  If you don't have the cash, you don't buy it, simple as that.  There are variations, depending on how disciplined you are.  I just keep enough cash on me to get through a week, my hubby will go longer.  If I know this week I need X, Y and Z, I know I better have enough money to pay for it in cash.  That keeps you from spending the cash on non-essentials.  

Answer 8

>>> We disagree at times about what is a 'need' and a 'want' purchase. <<<

Not saying it'll work, or that it'll help your marriage any, but if one person says it's a "need" and the other says it's a "want", assume it's a "want" and don't buy it.  If you don't both figure out fairly quickly that you really did need it, it's safe to say that was the correct assumption.

Answer 9

Start by immediately putting $500 into a savings account.  Forget it's there.  Next, begin taking your lunches to work rather than buying out or buy out on Fridays only.  Buy yourself a few of the smaller purchases and then continue to wean yourself off.  Just ask yourself before you buy - "do I/we really need this?"  Try less expensive brand shampoos and soaps. Even toilet paper :-)  Laundry soaps, etc.  All of these items add up so quickly.