Okay, after a small discussion and a little bit of negotiation I think we have a plan.

We did it in 3 steps:

1. Understand fixed expenses or savings that we can’t or don’t want to change.
2. Review previous year expenses to understand where we’ve ignored our budget and seek out opportunities to cut spending.
3. Set achievable targets.

Here were the results:

1. We are keeping our mortgage on an accelerated repayment along with our RESP and RSP savings and we can’t reduce child care, insurance expenses or utility bills.
2. We absolutely must deal with our ‘going out for coffee and treats’ habit. It’s also time to reinstate some discipline with respect to ‘stuff’ and clothes.
3. We’re going to stick to our budget on gifts, clothes, recreation and vacation and entertainment. No more coffees and/or treats out, nixing extravagant gifts to each other and no more ‘stuff’.

This doesn’t mean that we won’t order in because let’s face it, we’re all tired at the end of the week and ordering in every couple weeks is a huge break. It doesn’t mean that our kids won’t play sports or go to birthday parties….they will. Some smarter grocery shopping may produce some savings too and every little bit will count.

Now we’re on the same page!