Monday, December 12, 2011

Budget, budget, budget

You know the ole saying...everything little bit counts....well it does. I think the biggest reason people fail at saving or budgeting is that they don't get the big picture. You have to think the long haul. Yes, it does take time and sacrifice on your part to break bad money habits.

1st-think of it like this...reducing your cable bill by $30 a month translates into a savings of $360 yrly. You should look at your cell phone and insurance plans as well to find more hidden savings.
2nd-use coupons(and I could do better). You can at the very least save $3-5 wk, which in turn will save you $144-240 yrly.
3rd-buy on sale and stock up. If it something that routinely goes on sale, buy only enough to get to the next one. This allows you to keep your capital in the bank for a rainy day event(like a flat tire, etc). The key is not to overspend on sale items.
4th-use credit cards wisely, again goes without saying. If you have to buy on credit then pay it off in a set amount of months. Make every effort to make those big purchases when your card offers 0% interest for a specific time frame. Then milk it, figure what you have to pay for that period. Set it up in on your bank site to pay monthly and forget it. Done. No shame in using their dime to fund a major purchase..hehe.
5th-make a commitment to not buy any thing other than the bare necessities for 3 months. This is harder than you think. But do it and you will be amazed at what you saved. $$$ ka-ching, ka-ching will add up.
6th-eat leftovers. I now plan meals with the sole intention of having the left overs later in the week. Not only has it simplified cooking but is a major time saver as well. Yeehaw on the time saving bit. Less food waste = less money spent.
7th-nothing new here but if you owe more than one credit card, take the credit industries advice. Attack the balance with the highest annual percentage rate first. When that one is paid off, move onto the debt with the next-highest interest rate. Transfer balances to lower interest card and credit card hop to get the lowest interest.
8th-now that you are working on #7, don't charge them up again. Instead, stay the course.
9th and most to save something every paycheck. Once you have money in savings you can pay for those unexpected expenses that come up. Plus, you have that nice little feeling of having a nest egg.
10th-impulse spending can undo your budget. Unless you have to have it to breathe, leave it on the shelf.
11th-shop used and pay less. If you have access to a Goodwill or the like, pop in and look around. You may luck up and find some things at a very cheap price.
12th and last, less bills to pay = more time. And having more time is always a good thing.

So, remember little savings add up to big savings. Everytime you save something, transfer the differece to your savings. Your financial health will improve as well as your well being.

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