In honor of all the homeschoolers out there working to live within their (often reduced) means, I’m declaring today Finance Freebie Friday, with a link to a freebie finance tool!

Millionaire Mommy Next Door (my favorite finance blog) has created a free spreadsheet that helps you keep your needs and wants balanced within the realities of your actual income.

One of the trickiest aspects of financial management is the tendency to spend money for things without actually considering what they are costing you in terms of the hours of your life that you must work to pay for them. Knowledge is power, and this spreadsheet helps you work out how much of your budget is going to genuine needs, how much is going to “wants”, and how much the wants are costing you, in terms of hours out of your life.

Now that you know what your expenses are really costing you (not just in dollars, but in time out of your life) you can decide what expenses are worthwhile to you, and which ones just don’t make as much sense any more! This is a great way to streamline your budget without feeling deprived. Some of those expenses you really thought you wanted just don’t look as important when you realize how long you have to work to pay for them. (And doubtless, you will look at some and decide that they are totally worth it!)

Here’s a preview of the spreadsheet - do be sure to visit Millionaire Mommy Next Door’s original post explaining how to use it.

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