The Not-so-Essentials

Discretionary expenses are those you have a little more control over, they are not as fixed. These are items like dining out, entertainment, clothing, vacations, gifts, personal spending money, etc.

Subtract the total of all of these monthly expenses from your monthly income. Hopefully the result is a positive number! If not, you may need to adjust your spending habits in the discretionary categories. Money that is left over may be set aside for emergency spending or repairs or other saving plans that you and your spouse decide upon.

Buying in Bulk

When most people see "buying in bulk", their thoughts immediately go a Sam's Club or discount buying club and buying a skid of cereal or 3 gallons of pickles. Buying in bulk isn't limited to this type of buying, it can also be used for other things of value. One thing to look at is your insurance policy. Many companies allow you to pay for several months or a year at a time, saving money in the process by not charging you a surcharge by paying monthly. The same principle works for your credit cards. Even though they may require a minimum payment, the minimum is not the maximum amount you should pay! Paying more on your credit cards will reduce the amount you have to pay over time and help for future purchases, such as a house or car.