For example, most people have no real idea of how much money they actually spend on food but when you create and maintain a budget, not only will your awareness rise, but much of the time your bank account will flourish as well. That's because most people find various ways of cutting corners once they realize how much they are truly spending. Instead of thinking a budget will end an era of eating out and renting videos, think of the incredible vacation you can have by limiting the activities you engage in now. In addition, many people on a budget find that they can engage in the same amount of activities they did before the budget only now they look for sales and eat out at places that are more budget friendly.
The second thing we need to do is to find out how much money you actually spend each month again include everything even those items that your spouse does not know about like that Latte down at the coffee stand, that you get on a daily basis. It helps to break this down a little. Fixed nonnegotiable expenses, things we actually cannot do without, we all need food lodging medical care basic clothing insurance property taxes a car may be necessary where you live, you get the idea.