Financial Budgets that don't Hurt

 

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Get in Control of your Financial Life

Everyone hates budgets.  They conjur up thoughts of restrictions, hardships, boring, and more.  They are not talked about at parties, and when out with friends, and cetainly not the hot topic around the water cooler!

But in reality, we all need some form of plan, theory, or idea of where we are going with our money, no matter how much we make.  It can easily slip away,  by paying too much interest, not paying attention to bills and the statements, and before you know it, you wonder where all your money went. 

Ever sat there at tax time, and vowed "next year will be different"?.

But as soon as the word BUDGET is mentioned, all you can think about, is going home straight after work, sitting in the dark with no TV or electronics, and eating mac and cheese in order to save money.  Well it doesn't have to be that way.

A few simple adjustments and you will be on your way, plus you will feel in charge and in control, which is where you should be.  Knowledge is everything with your finances, and even if you only have a few dollars to play with, you will know where you stand.  If you don't know that,  you at least need to get familiar with your monthly bills, because sticking you head in the sand, will not make them go away!


Lets get started!:

1.  Take an afternoon and lay out all your bills on the table. 

2.  Figure out which bills are fixed bills, such as your mortage, rent, car payment etc. (these are bills you can't do to much about right now).  Then make a pile of the bills you do have some control over, such as credit cards, groceries, cash withdrawals, entertainment etc.

3.  Start with your credit cards, if you can't pay them off each month, find the one with the lowest interest rate, and see if you have enough limit to transfer your other cards to that one.  If your limit is not high enough, and your credit rating is pretty good, phone the company and tell them what you want to do.  Some credit card companies will jump at the chance to take over their competitors.  This way you will only have one payment on one card, and hopefully it is a lower interest rate.


4.  Take a look at your cable, internet and cell phone bills, if you get them all through the same companes, they will quite often bundle them into one bill and give you a much better deal.  Especially cell phones.  You can save a lot here, they don't offer this, you have to ask.

5.  Make a grocery list, and shop ONCE a week.  Come up with a few menu ideas, and make double the amount and freeze some for those nights you are in a hurry, just plop them in the microwave and you can still eat at home or take it with you.   Try to shop mostly in the outer isles, which is usually the fresh ingredients, and stay away from too much packaged food, it doesn't serve many and is expensive.  (when it says serves 4, it really only serves ONE hungry teenager!).

6. Get up a little earlier, and put on a pot of coffee, and make your lunch for work while you are waiting for your coffee to brew. You would have spent 1/2 hour getting a coffee on the way to work anyways, with the lineups, and this way, you are not tempted by those 3 dollar latte's!. Even just saving five dollars a day on coffees, snacks etc, is 25 dollars in your pocket at the end of the 5 day workweek. That is good for a movie and goodies!.

7. Give yourself an allowance for entertainment. We are human and need some fun, but don't go overboard. if you save on those weekly purchases, such as latte's, muffins, snacks, or even lunch, then you will have more money for the weekend, because your weekly allowance has to cover your weekday spending as well. So, now you might think twice about buying that extra muffin.

8. Get yourself a crockpot, and throw meat, vegetables, water and some seasonings in it the night before, keep it in the fridge, and then in the morning, throw it in the machine, and this will stop you from buying too many takeouts on the way home. Or eat one of your double freezer meals you made up, and save your eating out for your own time on the weekend when you will enjoy it, not just because you are tired on the way home from work.

9. If you even just shave 10% off of all your bills, you are already on your way to a savings account. Just make sure to set a certain amount of your savings aside every pay. Get your bank to do an automatic transfer to a savings account when you get paid. This will stop you from spending your savings.

10. All of the above ideas, are painless, just need a little bit of thought and organizing, but once you get into the habit, you will be on your way. Plus the bonus is, you know what you are spending. Still don't know

where all your cash is going?.. write it down in a journal for 2 weeks, and be honest. You will be able to pin point the leaks. A budget, just means you are now in control, rather than the other way around. You can then decide what to do with your savings, whether you take a holiday, or pay off a creditor, your choice, and that is the whole point.



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