Your expenses are more than your income?

Circle every expense in your worksheet that is a “want.” It is imperative to separate expenses that are for true needs (health insurance, the electricity bill) from those that are not crucial for your family to function (gym membership, new clothes, computer games, etc.).

If you do not have an eight-month emergency savings fund, if you have credit card debt, and if you are not saving for retirement, you have no choice but to reduce and even eliminate many of the “wants” your family is spending money on. This is not supposed to be a comfortable or easy exercise. Cutting down from four manicures a month to three is not going to get you where you need to go. Your financial security is buried in those expenses. The more you are willing to curtail spending on those expenses, the more money you have to protect your family.

The $25 you don’t mindlessly shell out to the kids every we k when they head out to spend time with friends is $100 a month you have to put toward a term life insurance policy that protects them if anything were to happen to you.

The $300 a month you don’t spend on the second (or third) car your family can do without is your future retirement security; put that much in a Roth IRA for 20 years and you will have more than $157,000, assuming your money grows at an annualized 7 % rate.

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Your expenses are more than your income?

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