27. Then, Track Exact Spending
Now is the more painful part of setting up a budget: figuring how much you are spending. If you’re like many middle-class American families, you regularly spend more than you are bringing in. If you are in that position, you need to slam on the brakes and get your spending under control.
Go to your last six months of bank statements and figure out how much you have been spending. Divide your spending into different categories, including housing, debt payments, clothing, food, entertainment, saving, et cetera. The types that you set up will depend on the essential things to you. Again, adhering to a stricter spending plan will help your family get out of a constant middle-class grind.