Cobb County Cooperative Extension

CAUTIOUS SPENDING/LEARNING TO ENJOY LIFE WITH LESS

The economy is on everyone’s mind these days.  Gas prices have risen to previously unknown heights causing the price of everything moved by trucks, trains and airplanes to increase via fuel surcharges.   Layoffs, shutdowns and forced retirements, what is a family to do?  Hold on, you can still enjoy your life, raise your children and plan for your future.  It may require some sacrifices now, but you may be pleasantly surprised by the benefits.

Hold a family meeting.  Be honest with your family about your money situation.  Understand that each family member will have a separate agenda regarding their individual goals.  Allow each person their opportunity to talk.  Listen to one another and then tell each other how you feel and what you think they are saying.  It may help to repeat to them:  Do you mean…so that it is clear what is being said and understood. 

Decide what is valuable to you and your family.  Knowing what is important for each of you to feel you are ‘living well’ helps you understand yourselves.   Make a list of ‘valuable’ comforts based on each member’s input.  Respect each other discussing the ‘pros’ and ‘cons’ of each idea.  Work together to understand there are choices to be made and everyone must be willing to compromise for the good of the family.  Supporting each other will help you make it through the hard times and strengthen your family ties. 

There may be disagreements.  If so, define the problem.  List ways the problem could be solved.  Evaluate all solutions.  Do not make judgments during evaluation.  Select one solution and outline the steps necessary to overcome the problem. 

Next, create a Family Spending Plan.  A spending plan can relieve stress and is a good goal setter.  Assign a dollar amount to the goals on which your family agrees.  Set a date when the money will be needed and decide how much to set aside to reach the goal.

Remember, using credit will not help with your family’s budget recovery.  Credit cards may be one of the reasons you are facing a financial crisis.  Families who increase their credit find that the more they borrow, the harder it is to get ahead or even caught up. 

A few tips to help you save money and make a lifestyle change for financial fitness are:

·                    If using cable service, cut back to the basics

·                    Cook at home – plan your meals before shopping

·                    Take your lunch to work

·                    Carpool or use public transportation when possible

·                    Buy clothing that does not require dry cleaning and only when it is needed, planned and on sale

·                    Cut back on paper-purchase some reusable cleaning supplies

·                    Eliminate alcohol and tobacco

·                    Spend less on entertainment-start a game night with the family or check for free events in your city or county

·                    Don’t add another pet to the family until the situation eases

There are many more ways to save.  Be creative.  Remember, your family is special and these situations, when shared by the group, can turn into opportunity for a little friendly competition.   Financial necessity may have created your family meetings hopefully, they will bring your family closer and open the door to more love, understanding and overall success of each member.

Emily Harper

Sources: UGA