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Living Financially Smart

Many times people think that you have to make a lot of money to have nice things or to accomplish financial goals. That is not true. You have to have a desire to set a goal and have the drive to reach it.

Finances can be tricky. For the longest time the Hubby and I used a strict budget form that we created on the computer. We used an Excel spreadsheet and recorded every penny we spent each day. 

This allowed us to really see where our money was being spent each month. You would be surprised to see what your thought process becomes when you realize you have to write down your purchase. 

For example, I allotted $30 for myself to spend on "Shopping". This meant clothes, crafts, decorations, etc. So it really would make me think, "do I need this?" or "will I want this tomorrow?" If I couldn't answer myself with 100% yes, then it wasn't worth spending the money on, because I knew I would regret my purchase later in the month. 

If money is tight for your family, take a moment to draw up a budget. Even if you just start by writing down your purchases, you will now have an idea of where your extra money is going each day, each week and for the entire month. 

Recording your daily spending habits will also give you the opportunity to see if there is a place that you can cut back on to save money. Many people rent movies from their local store or Redbox. However, if you go to your local library they have new releases you can borrow for free. I love to get on my library's website and place a hold on movies we want to see. Then they just send me a text message when the movies are ready for pick up! 

This is just a simple way to save a couple dollars a month, but $5 a month will be $60 a year. Little things add up, so don't discount yourself by saying, "we are only saving a couple dollars, it's not worth it." 

Choosing to live financially smart is just that, a choice. You have to choose to spend your money wisely. You can't expect to live a $100,000 lifestyle on a $50,000 a year salary. No matter what choices you make, it just won't happen. You just have to choose what is important to you and your family. Budgeting is one step to living a more financially smart life!

Until next time,

Kara

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