Let's talk about your budget.
Preparing your family budget can be a daunting task if it is something you never attempted before. So many people will work and pay their bills as best they can from week to week. This is what I call survival mode. In order to break the cycle we need to look at all aspects of your spending.
Let's tackle the big items first. You will need to pull together all of your monthly bills and organize them. For at least 30 days, write down every penny you spend. Every bottle of soda, every piece of candy, newspaper, etc. The next task will be to break them into categories.
Housing - this will be items like rent, utilities, cable, maintenance expenses if any
Living expenses - these will be food from the grocery story, toiletries and meals eaten out
Medical - doctors, prescriptions, etc.
Clothing - clothing, shoes, accessories, etc..
Misc. - things like dry cleaning, hair cuts, etc.
Savings - How much do you put away with each paycheck?
Now tally up each category! Are you surprised by what you have found?
The next step will be to see where you can trim spending and start saving. It may be less trips to buy coffee or sodas, maybe only one manicure a month instead of weekly. These are the hard decisions that you will need to make if you want to purchase a home.
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