I am taking over
the family fiscal management.
My lovely
wife Heather has done the micro-management of our money in the past. That is, I
take care of retirement saving and the big picture, Heather takes care of
paying the bills and managing our monthly expenditures. In other words, I tell
Heather about stuff that she doesn’t understand at all (RRSPs, RESPs, etc) and
she tells me that I eat at McDonalds too often. Since moving to Ottawa, though,
everything has gone to hell. We have been spending like twice-drunken sailors.
Between renovations, travel, and general disregard for our personal safety… we
are spending too much. Not to mention that we have now been a one-income family
for a year and my previous income was pretty reasonable. So, there’s a new
sheriff in town. Heather has put me in charge of the money.
My first
step, examine every expense over the past three months and create a budget.
This sounds simple enough but the key is that one must be completely honest.
For many years the advice that I gave many would-be pro poker players was: “Write
down every single win and every single loss. Every… single… one. If you are
completely honest with yourself you will either get better at the game – becoming
a winner – or you will quit the game.”
Similarly,
whenever I want to lose a few pounds I write down everything I eat. Every…
single… thing. Record the calories. I do not subscribe to any particular diet.
I pay no attention to nutrition. I simply count calories. And, when I do this,
I quickly question everything I eat. Do I really need another Jersey Milk? And,
I lose weight.
Thus, it’s
time to start categorizing expenditures. What goes where? I mean, I have to be
honest but Heather doesn’t need to know EVERYTHING. Thanks to my Facebook
friends, many good ideas have developed:
Business Category
McDonalds Pre-cooked groceries.
Or, Automotive if it was drive through.
Subway Transport
Manchu
Wok Travel
Burger
King Support of the
monarchy (Heather loves the monarchy)
Skyrim Educational
Software
iTunes Arts and
Culture
Tim
Hortons Charitable
donation to the third world (Coffee sales)
Toyota Earthquake
relief
IKEA Construction
LCBO Fruits and
Veg (I consume my grapes in liquid form)