9Honey life hacks: How to do a household budget

Sometimes you have to learn by making mistakes. Trust me, I did. But when it comes to making mistakes with money it’s best you learn from me.

Somehow, in my late 20s, I managed to rack up a $20000 credit card debt. I swear I don’t even know how it happened. I was married and my then husband and I simply lived beyond our means. I certainly don’t think we lived extravagantly. But when we got divorced it was a case of splitting debt not assets.

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I re-entered single life struggling with my new status and interest payments. Both hurt.

So I got bloody strict, set myself a budget and stuck to it. At first it was hard going without but then it got easier. Now I have kept my credit card on zero for a decade and just knowing that makes me happy.

Then a few years ago I was out of work for a few months and realised I had to tighten the belt in other areas too. I was 40 and I had never done a proper household budget.

The biggest tip I can give you is to work out how much you spend each month. You probably know how much you earn each month – but do you also know where it all goes? Find out by tracking what you’re spending. Spend as you normally would, but for a few weeks, jot down in your phone every cent you spend. It’s easy and you might be amazed, or shocked, by what you find out.
  
Budgeting really helped me get through the lean times and is now helping me get ahead.

Now I’ve remarried, my husband and I are very careful with our money and it feels good. There will be no STDs (sexually transmitted debt).