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Welcome to the world of “Budget“; a very important subject, although widely neglected and misunderstood, in most homes.

I am involved in various home based businesses, but the most important of them is managing my Monthly family budget. Notice that I used the word “business” to describe managing my budget. Unlike most people, I treat my monthly expenses like a business, always looking to improve the services I pay for by finding better deals and reducing the resulting costs. I always try to get the most out of my investment through higher services at lower costs. When I find a particular budget item that can save me $ 100 per month, not only do I see it as a savings, but I treat it as if I just received a raise of $ 100 per month, which translates to $ 1,200 per month. annual salary increase (assuming it is recurring monthly). Yes, by being diligent and resourceful, I just gave myself a raise of $ 1,200 for the year, which, by the way, is cumulative in effect, year after year. Woof! Now imagine if I can replicate this feat for various items in my budget, over and over again. That’s going to be some kind of hefty raise that I’ll give myself. You see, by treating my monthly budget like a business, I provide myself with a means to increase my income and disposable savings. I don’t need a boss to give me a raise; Through diligence and ingenuity, I am able to give myself a raise, over and over, over and over, year after year. The long-term cumulative effects of doing this can be quite staggering, to say the least, and a person’s overall net worth will increase substantially over the years, by implementing this “business practice.”

I am an extremely compulsive and diligent budget person. Regardless of how big or small the household expense is, I record it on a tracking spreadsheet. I think my wife thought she had married some kind of compulsive lunatic when I implemented this system in my home. But, as time passed, she recognized and understood the value of the budgeting system that I implemented in our house. In addition, I have taught my 3 children the value of money and budget, and have tried to introduce these principles into their lives as much as possible. Without a doubt, as adults, they will be much better off because of this.

I know exactly how much money I spend on each spending category on a daily, weekly, monthly, and yearly basis. I can honestly say that I have no friends, family, neighbors, or acquaintances who are as diligent and passionate about budgeting as I am. In fact, most people don’t really understand the art of budgeting. They sure use the words “not in my budget” in conversation; But few, if any, really understand what their budget is like, how much it costs them to live each and every month, and how much money goes out the door with respect to their bills and expenses for goods and services they have purchased. . Many people I know constantly waste their money on frivolous spending and neglect basic budgeting techniques and practices. Some of these budgeting areas can individually save you hundreds of dollars per month, if implemented.

I have divided my budgeting techniques into a number of categories listed here. Each category should have one or more specific strategy elements associated with it, which you will need to develop. Some categories should have more budget strategies listed than others. Some budget strategy savings ideas will be relatively small in nature, but don’t discount them. After all, these small elements add up, and what counts is the net effect of the sum of all the budget saving strategies applied. With that said, these are the categories in my budget that need to be addressed:

  • Food
  • Purchases
  • Clothing
  • Utilities
  • Lawn and garden
  • Entertainment
  • Family
  • Weddings and Gifts
  • Banking / Finance / Bill Pay
  • Automotive
  • Holidays
  • Medical / Dental
  • Other insurance
  • Taxes
  • Education
  • Mortgage
  • Cost of living

Next, I want you to develop a Budget action plan when addressing each of these categories. I want you to buy a notepad (or alternatively feel free to use a text or word editor on your computer, smartphone or e-reader to achieve the same purpose) and create 2 columns:


  • Category: Strategy
  • Budget action

Go through each category, one by one, and begin listing the individual budgeting strategies for each category above. Focus hard on how a designated category and budget strategy item can be seriously applied to your household budget situation. Be aware that some budgeting strategies may seem overly simplistic or obvious. If it is relevant to you (and most will be), write down the budget category and budget strategy element, and one or more budget actions you need to implement to put the category and strategy in place, taking into account your situation. personal. Continue to do this for each budget strategy, in each budget category. Again, do your best to apply each category and strategy to your situation. Never discount a category and a particular strategy article because it only saves you $ 10 per month; These small items add up quickly and the overall added monthly savings, when it’s all counted, will just wow you! When you have completed your Budget Action Plan, review it and start implementing your Budget Actions, one at a time, monthly, or as needed. By the way, it wouldn’t hurt if you reviewed your Budget Plan several times. This can easily facilitate new ideas and additional budget actions that can be implemented in your budget action plan.

If you are honest with yourself, extremely diligent in implementing these budget actions, and have the discipline to adhere to them, there is no reason why you cannot reduce your monthly family budget by 20% (or more) in any given year. This should be an ongoing process, year after year, as you continually review your expenses annually, to get the increase you deserve!

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