KIS - Running My Household

I run my household a lot like I would run a business.  I track my income and all of our expenses right down to the penny.  Granted, as a single person this is probably easier to do on my own than it might be for a couple but I know plenty of couples that manage it all the same.

Several years ago, after wondering where all my money was going and only supposing I actually knew the answer, I set up a workbook in Excel.  Within that workbook I created various spreadsheets to track expenses.  In time my workbook and spreadsheets have evolved as the needs of my family have evolved too.

I started tracking my monthly bills, savings goals and groceries.  Then I pretty much decided to track everything to see if I could better manage my finances and make wiser choices with regards how I spent my money.  Currently I keep a spreadsheet to track spending on gifts for birthdays and holidays, one for vacations and another one for tracking home improvement expenses.  I figured, in addition to bills and groceries these were key areas to manage better as well.

I check my bank account regularly to make certain my spending log balances with my checking account and to make sure nothing is amiss.  I also check my savings account a few times a month and strategize ways to increase my current deposits.  I am constantly striving to spend less and save more.

I set budgets for groceries, gifts, Christmas, vacations, etc.  I track those budgets very carefully so I don't go over and money is not wasted.  I also consistently look for ways to come in under budget, just like a good business does.

I don’t keep all of my eggs in one basket.  Not only do I have multiple income streams but my savings are in different accounts depending on what those accounts are meant to represent.  Emergency fund, Christmas fund, standard savings account, retirement account, etc.  I also look for ways to improve both my income and my savings.

Like a business I carry insurance on my assets.  In this household I happen to be one of those assets and so I am insured as well.  I make sure that we have adequate coverage on our assets and am careful not to be over or under insured.

Like a business we have regular family meetings to discuss where this household is headed and how we plan to get there.  So much is going to be happening in the not too distant future and I value my children's input.  After all , most of these events directly involve and affect them such as family vacations, holiday plans, driver's education, college, and a whole lot more.

I'm a planner and a goal setter.  Nothing gives me greater pleasure than to cross items off of a list.  Especially a lofty goal I've worked really hard to achieve.  But honestly, I get a kick out of crossing stuff off of my grocery list too.  I know what you are thinking.  What a nerd!  But I'm a happy, well planned out nerd. J

For me, with all of my anal retentive tendencies, this is a simple process.  I especially like that I don't have to wonder where I stand or what happened to my paycheck.  Plus, I have a plan for my future just in case something unexpected happens.  The peace of mind in that makes all of my efforts worth it.