As a homemaker, it can be daunting to see the money come in and then quickly go out.  As an accountant, I would like to say I am perfect at tracking the ins and outs, but the reality is, I am busy and don’t always do this – just like you. Should this change? Absolutely.  As a wife and mother, you should be able to know (on a moment’s notice) how much money your currently have to pay your bills, how much you have to save, how much is invested. That is income.

As for expenses, you should know in great detail what your bills are, who you pay, how much, and when. If you don’t have a current, accurate accounting, you may not even notice that you are spending more than saving. Or, that you are saving more than spending and don’t have your money in the right place! (I hope that the latter is true!)

Here, is another reason why you should make sure you are current on your accounting: if someone (your husband) asks you about it, you need to be able to give him an answer. Right away. This is part of the job. Keeping your home and making sure your family’s funds are getting applied correctly, appropriately and verified.

This is why it can backfire. He asks: “Is there enough in savings for me to purchase new tires for my truck?” or “I would really like to buy a pretty dress for you so I can take you out (ahem), do we have the cash flow for that?” You don’t have an answer because all you have done is check online to make sure checks have cleared and there is enough to pay the bills (at least the ones you can remember off the top of your head). Extra bills like medical, DMV payables,and bi-monthly bills are set aside to be paid later when they are due and then they are forgotten. If they are paid, (I hope so!) you don’t account for them in your quick online accounting as mentioned above. The result? You don’t have an answer. Or even worse, you have an answer and it is the wrong one!

“Yes honey! Thanks for asking me. We do have enough for a dress for me and for dinner out….and for a babysitter!”

He buys you the dress. The night comes and you quickly check your bank balance because you have a bad feeling and you find that…..

….you do NOT have the money for dinner and definitely not for a babysitter!

You tell your husband. He is angry. You are sad. You have just failed! Mistakes are fine – they happen. But how often have you made this mistake? If this were a corporate job, you could have been fired. Thank God that is not the case! If it is the case (or has been), perhaps your husband has already taken over this department. Maybe you had too much on your plate? Do you want it back? Do you want financial control of your life? Simply knowing where you are with your money situation and knowing where you want to be can give you that control.

These are my personal goals for financial control this year:

1. Work with my husband on creating a budget
2. Keep track of my accounts on a weekly basis
3. Stick to items 1 and 2

Sounds pretty easy when you break it into 3 manageable steps (and one of those is a freebie, right?) Here is how we can really act them out:

1. Create a budget! This is pretty simple. Yes, simple. Don’t make it hard. Figure out how much you make each month. Figure out what you need each month (fixed expenses such as utilities, mortgage/rent, groceries). If you have money left over, set aside for savings. If you have met your savings goals, allocate extra money to repairs/improvements or wants for that month.
2. Keep track of your income and expenses! When you tackle this one week at a time, you will find that this is much easier than you thought. You can probably get everything sorted out in about an hour a week (maybe even a half hour depending on your situation). You need to do three things during this time:
3. Verify that your income is still in line with what you had planned.
4. Enter and classify your expenses. This will help you make sub-budgets too (for instance, a grocery budget or a gift budget). You will know where all of your money goes and be able to update your budget on a weekly or monthly basis! Share the above information with your husband so you can make sure your money is getting treated correctly. If both of you are involved, there will be less room for an argument or confusion. You shouldn’t have to meet formally, all of the time. Primarily to get the system going and then occasionally to keep it on track!

What does this mean this time of year? It’s tax time! You either prepare your return on your own, or give your information to an accountant…guess what…your information will be ready to go! Don’t you just feel more organized? Like a weight is lifted off your shoulder?

Your challenge (should you choose to accept it) is to start right now (as of January 1st, actually)! If you didn’t save all of your receipts that’s ok. Use your bank statement or online bank access. Get everything written down, go over it with your husband. Follow the steps mentioned above and they will help you get your financial situation under control. By the way, once you get a good snap shot you can start planning: investing, savings for college, buying a car, paying off debt – anything!

Here, are some great resources for budgeting, finance and tax From Debtor to Better, by Barry Myers

And, coming soon…Your Blogging Business, Tax Talk & Tips from an Accountant turned Blogger, by Nikki Hughes (Me!)