- When building family wealth, every cent counts.money money money image by Arman Zhenikeyev from Fotolia.com
It is true that money doesn't grow on trees, but you can manufacture wealth for your family with detailed financial planning. To develop family wealth, it's important to know what you are spending each month and what it is spent on. Setting a budget will allow you to prioritize your spending and set a goal for savings each month. By spending smart, you will save money and start to develop your family's wealth.
Avoid Unnecessary Bills
- Take a look at your family budget and the bills that you pay on a monthly or annual basis. If some of these are for entertainment activities such as gym memberships, cable service and entertainment, determine which are truly necessary. If you aren't going to the gym more than a couple times a month, avoid throwing away that money each month and cancel your membership if you aren't signed to a long term contract. Examine your cable bill and determine if you actually use everything you are paying for, if there are items you don't use cancel that part of your cable subscription. Examine how much money you spend dining out each month, and determine how much you could save by dining at home. You don't have to eliminate all restaurant meals, but limit them to a few times a month as a treat.
Monitor Your Utility Usage
- Keep track of your monthly utility bills. Avoid doing things such as leaving multiple lights on when you aren't home. Turn your computer off during the day when you go to work. When taking a shower, set a time limit. Track how often you run your dishwasher in a week, and make an effort to reduce that by running it only when it is full.
Take Advantage of Sales
- When grocery shopping, don't buy based on your weekly needs, instead buy ahead of time. If one week your grocery store is having a sale where the price is more than half off on toilet paper, purchase enough for a month or two. If the grocery store has chicken on sale at a large discount, purchase enough not only for this week, but several weeks in advance and freeze it. By purchasing items when they are at their lowest prices you can avoid paying higher prices based on need. This works the same way with Christmas and birthday presents. Shop ahead of time. Don't avoid a sale item for someone as a Christmas gift just because it's March.
Review Your Budget Regularly
- Track where your money is going. If you live alone, keep a spreadsheet listing your expenses and track where your money goes each week. If you are married, do this with your spouse either weekly or bi-weekly. Knowing where your money goes can help you build wealth by avoiding spending on unnecessary items. As an example, if you are stopping at the grocery store three to four times a week, work together on becoming more efficient at creating a list for one shopping trip a week. The more times you visit the grocery store, the more temptation there is to buy items you don't need.