SolveYourProblem
Article Series: Budgeting Tips & Advice
Help Me To Create a Budget, Save Money,
...and Stick To It!
Budgeting:
How To Cut Your Costs and Expenditures
Cutting
back on things you need the least is a good starting
point if you are at a total loss as to what and how to
give something up, add a new line into your budget or plan
for the future or inevitabilities. You are well on your
way in the family budgeting process. You are doing it,
every step of the way. Consolidate and re-visit your budget
often – it is a dynamic process and ‘living’ document or
tools so to speak to help you keep your fingers on the
pulse of your financial situation.
Another
useful strategy is to set up a bill-paying plan and process
that will protect your interest. When, how and how much you
get paid will all influence your course of action. Creative
and innovative allocation of your paycheck is the key.
If
you get paid once a month, the amounts in your budget will
have to be paid monthly as is.
If
you get paid twice a month, divide each budget item by two.
If
paid bi-weekly (as is mostly the practice these days), still
divide the monthly amount by two – it will not be the exact
amount to plan for, but a rough and close estimate. In the
end better than nothing!
If
you are paid weekly, divide each budget item into 4. Cash
flow management will form a big part of your fiscal strategy,
once you have put your budget pen to paper and mapped out
the needs and requirements. Utilize your cash, checking and
savings account (if applicable) to pay for expenses. Do not
pay your bills with your credit card!
Keep
track of all your discretionary spending. A financial
diary for a week is always a good idea to scribble down
in every time you withdraw money, pay for something or
open your purse without thinking.
This
will provide you with insights you did not have before on
where the money actually goes. It will also carry within
it, clues to adjust budget lines if actual cost is higher
on certain items. Spending patterns and behaviors will emerge
that might surprise or shock you!
Having
some wriggle-room and discretionary spending is always
motivation. The occasional treat and indulgence,
special night out or other family activity is that more
enjoyable, if you know you have worked hard to earn it
and deserve a pat on the back for all your fiscal responsibility
and discipline!
Always
keep one eye on the future folks… budgets might need to change
again and again for a variety of reasons. You can never feel
you have “arrived” completely and that your budget is set
in stone. Family and life often throws us a curve ball or
two, banks, service providers, government and fate sometimes
do too!
Changing
budgets should not be a source of frustration for you; it
actually shows you that your family budgeting process is
actually working. It is a real-time pulse and mechanism to
capture these changes, which will leave you prepared and
informed, ready to act and respond appropriately. This impetus
for change can come from different sources.
Here
are some examples:
Change
of income, goals, rising prices, goals reached, family growing,
moving and or relocating to a new place, family getting smaller,
new spending habits, change in lifestyle or unplanned expenses.
If
you can stick with it and see it through a family budget
can help you meet your goals, get and stay out of debt, pay
your bills on time, every time, keep track of your spending,
cut costs and stretch your dollar to the max!
 
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SolveYourProblem.com : 2008
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