The most significant thing to impact our family budget has been to change to cash only lifestyle. Once a month, Paul and I get the month's cash supply. Although we still write checks for mortgage, utilities and charitable contributions, and we put gas on the credit card, cash is what we use for nearly everything else. (Debit card for online purchases, car repairs and certain other agreed upon expenses). We divide the cash into categories (groceries, gifts, clothes, eating out, etc) and that drives our behavior. It's the old "envelope method". If there is no cash left in a certain category, we can choose to "borrow" it from another category or wait until next month.I often set up "temporary" envelopes to save for things like a sofa or a special birthday gift for one of the children. But we can't spend what's not there. When we made this change, it showed us how much "impulse" and/or unnecessary expenditures we were making. At the same time, it freed us up! I didn't feel guilty about eating out anymore because there was cash allocated for that purpose!
It's also a great way to teach your children the concept of budgeting, delayed gratification, and the cold hard truth that $$$$ doesn't grow on trees. At least none of the trees in our yard!
It's also a great way to teach your children the concept of budgeting, delayed gratification, and the cold hard truth that $$$$ doesn't grow on trees. At least none of the trees in our yard!