The first step, as suggested by Dave Ramsey’s book, is to record the monthly financial ins and outs. We are going to calling this, Maintaining the Family Finance. To do this, I have a worksheet that I have been using for the last six years. Prior to reading the book, I only kept track of the main expenses and their monthly due dates. Many of my monthly memberships that were automatically deducted from my credit card such as Audible, the kids’ after school activities, etc were not recorded. Instead, I calculated a monthly estimate of my credit card statement balance and kept account of only that. After reading the importance of knowing exactly where every penny is spent, I added in those expenses to my spreadsheet.
So here’s how to do it:Continue reading “Financial Freedom Step 1 – The Family Finance”