Day 5- Mommy Makeover Bootcamp

Welcome back. How are things going? Are you still keeping your patience with your husband and your kids? Are you excited about your house becoming a home?

Now on to finances. Grab your notebook and label a new page: Finances.
Take a good, hard look at your financial situation. Are you scraping by every month? Are your bills paid on time every month? Are they behind or are you having to choose which bill gets paid this month and which one has to wait until the next month?
Do you have an emergency fund? A retirement fund? College fund set up for the kids?

Challenge: Create a budget to live within/below your means. Start by listing your income and your monthly bills. Which is higher, income or outgoing? If your income is higher, then start tracking where all the other money goes. Keep a record of every transaction even down to the soda at the gas station.

Journal: What five things do you want to accomplish financially this year?

What are your financial goals?

Write them down. Are you trying to get out of debt? Do you want to buy a new car? Any car? How about a house? Maybe you just want to stop living paycheck to paycheck. Do you have a 401k or any other retirement plan? What about your kids college (wedding LOL)?

Expert note: Financial guru, Clark Howard, says start your retirement fund before college funds for your kids because kids can get scholarships and grants and loans, no one is going to fund your retirement.

Are you spending more money than is coming in?

You wrote out your budget. How did it go? Is there more money coming in or going out? Or are you breaking even? If there is more money going out then it's time to take action. Time to cut spending until there is more money coming in. Try cutting out some extras on your cable or satellite tv. Perhaps you don't need that Starbucks fix every day, maybe every other day. The easiest place to cut back in on your grocery budget or eating out. The eating out thing is easy, STOP EATING OUT SO MUCH! There, problem solved. (We'll get more detailed later.) Right now take a look at the extras that are obvious that you could cut out with little to no effort.

Do you have a budget?

Do you know where your money goes? Can you account for every penny or do you get to the end of the month and wonder what the hell happened to your money? Worse yet, do play beat the bank and float checks hoping that the paycheck comes in before the check you wrote clears the bank?

I am guilty of all of those things at one time or another. Now I have a written record of finances and where the money is suppose to go each month. If you’re as lost as I use to be then here are a few steps to help you out.

Write out all of your fixed expenses. Mortgage, rent, utilities, groceries, gas, etc. Now list your credit cards or loans on there too. If you’re not sure of your grocery or gas expenses then over the next month write down every time you go to the grocery store or stop at the gas station. (If you want a true average then keep track for three months and then find the average)

Now write down your income for the month and subtract your expenses. If your expenses outweigh your income then you need to find ways to cut corners. The best place to start is the grocery bill. Try buying generic brands or planning out your meals.

If you really have to cut out some things try reducing your satellite or cable package. Do this with your phone bill as well. If you can make do with one car then perhaps you could sell one or trade in one for a more economical model.

If your income exceeds your expenses that is wonderful news! Try to put money into an interest building savings account. Pick a percentage to put back every pay period or month. Even $5-$10 a month makes a difference.

Final note, when creating a budget be sure to include amounts for savings, entertainment such as eating out and trips to the movies, medical and dental expenses, fees for sports or school, any other miscellaneous you might think of.