Money Watch 8: Overcoming numb spending

INDIANAPOLIS (WISH) - Getting a grip on family finances is clearly a top priority in many homes. Thousands have already signed up to join 24-Hour News 8's Money Watch 8 Challenge - 60 Days to Change.

Getting a grip on personal finances can be so overwhelming that people develop what Financial Expert Peter Dunn calls "numb spending." People know they should be doing something to stop spending, but they don't know what or how.

Week 1 is under way. The three families who agreed to participate in the challenge are making progress in overcoming their own "numb spending."

The first family: Amy and Brent who are the parents of two young children, are finding out taking control of their finances isn't a quick fix.

"Well, like today. She went out to lunch and there was all kinds of stuff right here," said Brent.

A purchase that created a little friction between them.

"I feel if I want to go to lunch every once in awhile then that's fine. I think I deserve lunch just like anyone else," said Amy.

"Getting organized is the toughest part. The old step on the scale lets see how much you weigh before you lose weight. It's always the worst part," said Dunn.

Dunn said getting organized means being brutally honest with your self.

"You're going to want to take the latest two months statements, for any account you spend money on. If you currently spend money on a credit card, you need to have that statement. If you spend money on a checking account that statement's got to be there as well. You need your pay stub, you need your insurance policies," said Dunn.

The second family: Joe and Merita, who have a 23-year-old son living at home with them, are taking a close look at their financial lives together for the first time.

"She's the spender, I'm the saver," said Joe. Merita agreed.

60 Days to Change has them counting the number of transactions, cash or credit they make in a week.

"If you're handing over your debit card or credit card or cash buying something 15 to 20 times a week, you're much more likely to spend absurd amounts of money that don't need to be spent," said Dunn.

Dunn said married couples should keep their transactions at ten or fewer a week, singles about 5 or 6 a week.

The third family: Single mom Nadia said its advice that is helping her financial future take off.

"I find myself thinking about, like today, I was going to stop before I got home, I was going to stop and get fast food. No, no no. Not going to do that," said Nadia.

Learning to adjust to the realities of the new necessities is also a part of week one. From buying your daily coffee, to the cost of your cell phone, simple changes can make a difference.

"Don't give up your cell phone, don't give up cable, don't give up the internet, simply evaluate your usage and compare that to your plan," said Dunn.

Nadia said that advice alone is saving her $130 a month.

"I changed my cell phone plan. I changed my cable internet and phone," said Nadia.

Our 3 families have taken their first steps on the 60 Days to Change.

"Yeah I've just been way too lazy on this. I come home from work and I just want to sit down and relax for awhile and play with the kids and I'm not real interested in crunching numbers," said Brent.

"Oh, I'll take over the card probably, hold it in my wallet," said Joe. Merita said, "We'll see about that."

"I know that I have the ambition, the discipline, and the motivation to do it. Just someone, or something helping me make the right choices," said Nadia.

That's exactly what the Money Watch 8 Challenge - 60 Days to Change program is all about. It will serve as a guide to help people get their financial house in order.

To sign up for the Money Watch 8 Challenge click here. Also, 24-Hour News 8's David Barras wants to hear how the program is impacting your life. To let him know how it's going click here.