• Continue to track expenses
• Find places to save (spending leaks)
• Analyze and revise plan
• Does your plan fit with your goals?

What are some examples of changes you can make if expenses exceed income? Share on our Facebook Page

How does your cash flow?

Goal: Match income with expenses

If income > expenses, save more!

If expenses > income, make changes

Matching income with expenses is the step that many people don’t make time for, but it’s important to do if you wish to make the most of your resources and achieve your goals.

Based on this analysis, make adjustments as necessary to your spending and savings habits.

Remember: Savings is an expense category. As you get expenses under control, and as income increases, put more money into savings vehicles!

By tracking where your money goes and comparing income with expenses, you can identify spending problems and make adjustments (either increase income or reduce expenses).

Again- “Savings” should be considered a regular expense. Get into the habit of regularly saving part of each paycheck.

There are many other expenses that you can include on a cash-flow statement; the more detailed, the better. The above image is only a sample to get you started.

HINT: If you don’t keep good records, you may have to estimate how much you spend in each category. Estimate expenses on the high side, and income on the low side—until you set up a tracking system that gives a more accurate picture.

As a family of four (mom, dad and 2-teenage boys), it would be so much easier if I could just setup our spending plan and ‘tell’ the others “this is what it is; now follow it”. But it doesn’t work that way and sometimes starting the conversation with others is the hardest part- especially after you’ve seen the spending leaks that are happening.  Below are some helpful tips to follow when getting together to discuss the family spending.

FAMILY COMMUNICATION TIPS:

1.Meet regularly—don’t wait for problems to occur.

2.Allow all members of the family to participate in the discussion. All of us—including children—are more satisfied with decisions we helped make.

1.SET GOALS TOGETHER.  VACATION WITH KIDS.  HOW MUCH WILL IT COST, WHERE CAN WE CUT BACK= BUY IN!

3.Clearly identify the problem:
–Is it overspending?
–Is one person a spender and another person a saver?
–Is there a problem with compulsive or impulsive shopping?
–Is there simply no plan?

4.Listen to each family member; ask questions to clarify. Understand each person’s values/attitudes toward money.

5.Don’t blame; use “I feel…” rather than “You don’t…”

6.Be ready to compromise and negotiate. Consider a written contract to avoid misunderstandings.