A critical part of quitting your job, so you can be a stay at home mom is budgeting. If you are looking for financial freedom and piece of mind a budget is your key. Examining your finances and the ways you are spending your money will tell you a lot about yourself. A budget will put your priorities back in line with your values.

To begin with, you need to figure out how you are spending your money and on what. Interestingly, most people have no idea what the answer is to this question. If this describes you, then you need to begin with tracking all your expenses for a month. It is important not to guess. When this is completed, it is time to really scrutinize this list and look for ways to start cutting cost. Start by looking at the big ones, like your home, vehicles, insurance and health care.

If your house payment (rent or mortgage) is to expensive then move! Why be a slave to a mortgage? If moving is not an option, then consider your financing. Can you re-finance at a lower interest rate? Re-financing can save you several hundred dollars a month. There are tons of lending institutions that are willing and ready to help you with your lending needs, not to mention your current institution. Start by negotiating with your current lending institution, which will be eager to listen if you have been a timely payer. Don’t go into blind, be prepared. Go online, look up the best interest rates possible for your size mortgage. As you renegotiate you mortgage, make sure you do it with no points and no closing costs.

What about your homeowners insurance? Consider raising your deductible. Shop it! Insurance companies are competitive, some have better pricing than others!

It might be time to sell your car. Are you underneath a giant payment, or driving a gas guzzling SUV? If financing is a necessity, then finance a CHEAPER CAR, that gets better gas mileage! Better yet, if you can afford it, go pay cash for a cheap car and have no car payment at all! Don’t let driving a certain car stand between you and your children.

Your car insurance is a biggie! Take a look at the deductibles and increase them. You don’t have to raise the deductible to a staggering limit, just slightly. What type of coverage are you paying for and what are the limits? Are they in line with what you need? It is important to look at your entire policy and understand what you are paying for? There might be things on your policy that are not necessary. In addition, ask for all the discounts you should get as a good driver or multiple car discounts. Further discounts are provided by some companies when you have both your homeowners and vehicle insurance with them. If you are not working, you are likely driving less, which with many insurance companies will reward with a discount. If your car is over seven years old, consider canceling your comprehensive collision insurance.

The number one reason people file bankruptcy is medical bills. Knowing that means you must have health insurance, but maybe you don’t have to pay as much as your paying. For those of us that have individual polices, shop it. Remember, these companies are competitors. For those that have spouse whose company offers it, you should really evaluate it and know what you are paying for. Some employers offer their employees different coverage options. Know what they are, and if it is advantageous for you to switch to a different option. Your health insurance is an absolute necessity, not having it, is not an option.

Really examining your expense can be eyeopening. Bringing your expenses in line and living by a budget could be the gateway to you being home with your children. Don’t be afraid to get aggressive with your expenses, and what you can save is amazing. Remember if you have a will, there is a way!