For most homeschooling families, finances will be one of the biggest hurdles they face on their journey. Even if one or both parents work, managing your finances can create success or stress on your journey.
I’ve learned a lot about life due to managing a business. Mostly, I’ve learned a lot about proper money management. Money can be very sticky or slippery depending on your approach. It doesn’t matter if your household makes $100 million or $60,000 a year; what matters is the amount once you manage your cost of living. If you make $10 and spend $8, you're worse off than the person who makes $7 but only spends $2.
Before we discuss our implementation steps, I want you to understand that you must track and know where every cent goes. Money doesn't vanish on that one big expense. In most cases, it vanishes because of the compounding effect of continuous bleeding in small amounts. Stop the bleeding, and this will create an additional excess. Multiplying that new excess creates a massive impact on your life and wealth.
We have all been there. You pull up your bank account, look at it, and then wonder, “Where the heck did all my money go?” If you are like me, you instantly think someone robbed you and start reviewing all the charges. My review usually goes a little like this: “Yep, that was me. Yep, that one too...Oh yeah, I forgot I bought that this month. Yeah, that’s mine as well.” In a matter of 3 minutes, I suddenly realize “I robbed myself.”
Tracking: This task can help change the situation you currently face. It’s extremely hard to actively track your money, especially when you have kids and are homeschooling. It’s also extremely hard to barely have enough money to get by, especially when you become a homeschooling family. Like the adage says, “Choose your hard.”
For example, perhaps you buy a $3.50 energy drink from your local gas station. It might not seem like a lot when you buy it every day before work, and you work the normal 260 days a year. That's $910 per year that you spend. The right knowledge gives you the ability to run a “Risk & Opportunity Analysis” on all expenses.
Acquiring the SKILL of checking every day can start making a difference in as little as a week or two. Once you have reviewed your bank account enough, you will soon become aware of the potential impact every time you want to make a purchase.
Specific Times:
- Morning: Review yesterday’s actions and set a plan with a clear mind.
- Evening: Reflect on the day’s spending; write next actions so you wake up ready.
Track and Document: Track spending to identify fixed vs variable costs. Keep reports for the future.
- Fixed: Rent, Mortgage, Insurance
- Variable: Eating out, Entertainment, Shopping
- Reporting cadence: Daily, Weekly, Monthly, Quarterly, Annually
Recommendation: Use a spreadsheet (download template below) or Notes on your phone.
Fill this table for each transaction. Tip: print weekly or copy into your Notes.
| Date | Description | Category | Type (Income/Expense) | Fixed/Variable | Amount ($) |
|---|---|---|---|---|---|
Prefer formulas? Download the Excel template below.
Annual Cost Cheatsheet (quick mental math)
| Daily Cost | × 260 workdays | × 365 days |
|---|---|---|
| $1 | $260 | $365 |
| $2 | $520 | $730 |
| $3.50 | $910 | $1,277.50 |
| $5 | $1,300 | $1,825 |
| $10 | $2,600 | $3,650 |
Increasing Net Profit — choose your lever(s)
Want auto-calculations? Download the Excel template below.
