Read Keeping a Budget Part 1 and Part 2
Set Savings Goals
When both Daniel and I were in school, saving money instead of spending our savings was a huge deal- and very rare. Now we are able to put a little more aside in savings, we make goals each month for our savings. This is our proccess:
1st- We guesstimate what our earnings will be at the beginning of the month. (My income is variable, so we never know exactly how much our income will be.)
2nd- Subtract our fixed expenses (Rent, Insurance, cell phone, Electric)
3rd- We set a budget for what our variable expenses will be. (groceries, gas, car maintenance)
4th- Using these numbers, we decide how much we will be able to save. Then we divide the amount into our different savings categories. (ie. Daniel’s education fund, Conner’s education fund, Trips, Travel & Fun Fund). Throughout the month we track our earnings and expenditures to ensure we are on course to meet our goals.
Setting goals helps us to have direction and save a lot more. If we did not have goals, we would be happy putting aside a much smaller amount. Setting big savings goals pushes us a little harder to find ways to earn & save money.
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Meet Natasha, founder of Saving a Bundle and mother of four rambunctious boys, and LeaDawn writer and new mother of one boy. Raised in a frugal lifestyle we continue the family tradition by cooking from scratch, using money-smart techniques,
living simply, hunting for good deals, have fun with frugal crafts, and use coupons. Join us on our journey as we, two sisters, learn & share ways to live a more frugal lifestyle to reach our common goal to save our families money.