We've established that each person is a business. Usually I would start with the product/services you offer the marketplace but I am electing to talk first about expenses.
You all are living. You have money coming in and going out. We need to establish where it all is going. KEEP RECORDS. All business do. In fact most businesses have accurate records going back 5-10 years. I advocate at least 1 year of spending records by MONTH. This means you can look back on identical months from last year to gain historical insight into what you might expect this year. Dah! The next thing is to have a 3 month budget looking into the future. List all you expenses you expect for each month for the next 3 months. Write down everything. PAY YOURSELF! Include in a budget, $10, $20 or more a week for yourself. Then every Monday (or whatever day you pick), Write yourself a check. Remember you are a business and you get to pay yourself a salary as meager as it may be. When a month is gone, keep track of what you actually spent against what you thought you'd spend and you can refer to it next year. When a month is gone, MAKE A NEW 3 MONTH BUDGET.
ANDREWS RULES:
1. BUILD UP EXCESS CASH in your checking account to cover
unexpected expenses. Timing of payments also gets involved.
2. PAY EXPENSES ON TIME.
3. PAY CREDIT CARD EXPENSES ON TIME. Never pay interest charges
on credit cards. I didn't say "don't use credit cards".
4. NEVER, NEVER carry an outstanding balance on credit cards.
You can rationalize anything you want. MY OPINION is to get
rid of credit card debt.
5. The only thing you should borrow money for are HOUSES AND CARS.
The people that get you to finance other things are "God-damned
blood sucking a-holes" to use Margaret's phraseology. She is
right. Come on! 20% interest rates. 25% interest rates.
Ridiculous.
6. ALWAYS KNOW WHERE YOU MONEY IS GOING. It is your money. If
your business fails it is because you don't get enough income
or you don't control expenses or both.
In the interst of keeping things short and crisp, I am ending this discussion. I will expand later. REMEMBER, ONLY YOU CAN CONTROL YOUR BUSINESS EXPENSES.
Dad (Just Chas.)