Living on One Income

Becoming a wise spender takes a lot of skill and knowledge. If you can't keep track of your family's expenses, it's time to start keeping a budget and sticking to it.

Inspect all your expenses including car registration, birthday gifts, school expenses, etc. Know what your expenses are so you'll know where you can cut back.

How do we save?

There's nothing more annoying than an unexpected car repair bill. So my family has decided to be smart and we had put a stop to those breakdowns before they can cost us a fortune.

1. We have regular car oil check-up.
2. We regularly check transmission and brake fluids.
3. We regularly check our tires.

1. Never buy anything without knowing y our store's return policy.
2. Always keep your actual store receipts.
3. Know what could never be returned, like underwear, makeup and perishables like food and plants.
4. Supermarkets will likely replace items that have gone bad prior to expiry date.

1. Bottled water - if you think you're doing a good thing by reusing your old water bottle, think again. After two days, that water bottle can go from 1 bacteria per mL to more than 5,000.
2. Sports shoes - your feet take three times your weight when you exercise. Without the righ support you can expect injuries so get a good pair of sports shoes.
3. Foundation - higher priced brands have a higher level of pigment and less filler. That means truer color with fewer breakouts.

Being in a one-income family, a Budget is a must. I have printed a spreadsheet of our budget and posted it in our bedroom wall so that even the kids can see it. Although many families may view a budget as unnecessary, it is really vital if you want to know where your money is going. However, a budget is not just for show or for paper, like what happens sometimes in my household. A budget is more than a written record of the money flowing in and out of your household. It is a financial tool that can help you save money, change your bad spending habits, or to help your family in times of emergencies.

Where did all your money go?
You need to keep track of all your daily expenses by writing it down in a small notebook which you can carry around with you. It's an eye-opener, believe me! Do this for at least one month and write down everything, and I mean, everything, that you spend money on, even the littlest thing or amount.

This will help you trace your spending habits, good or bad. Tracking your expenses is only the first part. If you're spending less than what you're earning, you're on the right track. If you're spending way beyond what you're earning, then it's time for a financial makeover.

Lastly, if you want your budget to work, let the family into it. In my case, my husband and I have discussed this with our kids so that they're aware of where we stand financially. More than discipline and motivation, it is communication that makes a family budget successful. It's going to be hard for you to save and save while everybody else wants to spend and spend.