Budget Living
Budget Basics
Living by a budget is a very simple concept that turns out to be incredibly hard to apply. Most people believe they aren’t organized enough, or they don’t know the basics of budgeting, and so they never even sit down to make one. Honestly, organization isn’t the real problem. The real problem is that living by a budget means being capable of telling yourself “no” when you want the answer to be “YES!” The math is simple. It doesn’t take any knowledge beyond what you learn in the fourth grade.
Here are some simple tips for living with an uncomplicated and realistic budget:
- Remember, a budget isn’t a wish list. It’s a statement of reality. “I have this much money, these responsibilities, and this much to use at my discretion.”
- Or maybe you’re in the hole every month? Maybe the credit cards are racking up? Writing down and tracking all of your expenses is the best way to find things you can eliminate.
- Avoid credit cards as much as possible!
- If you have leftover income, you can start prioritizing. A good idea is to save up at least enough to cover a month’s worth of bills to cover yourself in case of job loss, hospitalization, or other emergencies.
- Depositing to a savings account is easier to do if you make it automatic. Have a portion of your pay deposited directly into your savings if possible. If you still get an actual check, try to pay your savings first.
- I’ve found the best way to track spending is with receipts. I’m not going to hold up the line at the gas station to write in my budget notebook, but I can easily record everything at the end of the day. Put an envelope in your purse and ask for a receipt for everything. If you’re married, ask your husband to ask for and to keep all purchase receipts. At the end of the day, record your spending in a notebook and classify the entries as necessities or what I call “pleasure spending.” Accountants probably have their own terms, but I’m just giving you an honest approach that is actually usable!
- I’ve often heard it’s best to use cash for daily spending, and that is an easy way to make sure you don’t spend money you don’t have. However, I don’t like to use or carry much cash. I prefer to use a separate debit account. Do what works for you!
- And the #1 trick to living on a budget? Live within your means! Decide before you go how much you are going to spend on groceries. Decide before you go how much you’re going to spend on Christmas, birthdays, and other purchases. Being informed and prepared is the best way to stay in control of your spending.
Learn To Save!
Check out these posts about ways to save:
Money Saving Tips
- Groceries are a major expense for families these days, so anything that can save money at the checkout line is well worth the effort. Use coupons! I’m by no means an expert coupon user, and I almost always have enough coupons to take $5 - $15 dollars off of our total. In addition to the coupons in your Sunday paper, try other sources. All You magazine runs excellent coupons for popular items. Sometimes for triple the discount of a coupon you’ll find in the paper! Online coupons are easy to find on the internet, but hard to use. If you want to use online coupons, I suggest printing and taking a copy of the store’s coupon policy with you on your shopping trip.
- Ever wonder which grocery store in your area has the best prices? Do an experiment! Make a list of items that you frequently purchase and visit several stores to write down their prices. I was shocked to discover that there were better options than WalMart.
- Try making some things yourself instead of buying them. Here are some links to making your own:
