Topic: budget living

[yonksgirl]

OK here is my topic! :star:


My topic is living on a budget. That is like a four letter word to me! LOL I just learned how great one can be! We are all caught up on our bills!!!!!!! Now I just need to stick to one so we can save some money!


I am going to post some tips as I find them. If you have any Ideas please post them or any comments!

[yonksgirl]

Title: Living Within Your Budget
Author: Chemain Evans

Having a budget and living within it are all too often two
different things. There are always things that we want (or
need) and credit is so easy to get. This article will
discuss ways to help you establish good budgeting habits and
stay with them.

First of all, why do you want to stay within your budget?
You need a pretty good reason or you won't feel obligated to
do what it takes. Decide that you want to get out of (if
applicable) and stay out of credit card debt. Decide that
you would rather pay yourself than somebody else (especially
the credit card company). Decide to save for a big vacation.
Whatever it is, you need a reason so that when that you
won't be enticed to overspend. Write your reason down on
both your budget and where you track your money.

Secondly, are you tracking your expenses often enough? If
you aren't looking at your money every few days, you really
have no idea how much money you have and where it is going.
If possible, spend a few minutes a day updating your records
instead of saving it all for the end of the month or the
middle of the next month!

Thirdly, why and where are you overspending? Look at your
expenses and see where you've crossed the line. Did you have
a large, perhaps unexpected medical, house, or automotive
expense? This does happen infrequently. Establishing a
short-term savings can help offset these expenses when they
occur.

If your overspending is due to discretionary expenses like
eating out, ATM fees, or other fines and fees (such as late
returns on books, videos, or DVDs), you might need to change
some habits. What may seem like little expenses at the time
all add up.

Begin thinking of things in terms of what it costs you over
a long period of time, such as a year. For example, if you
pay $3/week to withdraw money from your ATM, that's over
$150/year. Instead limit withdrawals to twice a month (or
less) and that's over $75/year in your pocket!

Below are some other ways to reduce both mandatory and
discretionary expenses:

* Increase your car insurance deductible to $500.
* Check around for better car insurance rates.
* Conserve utilities when possible.
* Consolidate your credit card and other consumer debt into
a home equity loan and then cancel the cards, cut them up,
and don't apply for new ones.
* If you are renting, try to buy a house; tax advantages
for paying home loan interest often make it cheaper to own
than to rent.
* Eat out less; brown-bag your lunch; find less expensive
places to eat.
* Find cheaper entertainment (like renting a movie instead
of going out to one).
* Consolidate errands to use less gas.
* Limit grocery shopping to one day a week; shop at more
than one store for groceries, if time permits.
* Shop around for a better long-distance calling plan or
cell phone plan (assuming you have met the terms of your
agreement).
* Borrow books from the library instead of buying them;
borrow books on budgeting and finance.

Some people find it necessary to go to a cash-based system
temporarily (or even permanently). This is sometimes called
the "envelope method." It involves cashing your paycheck and
depositing only what is needed to write checks for bills or
to cover bills that are automatically withdrawn from your
checking or savings accounts.

The remaining cash is allocated into envelopes marked for
certain expenses such as food, gas, etc. Once the money in
any envelope is gone, if you wish to make any additional
purchases you either have to shift money from another
envelope or wait until you get paid. This really helps to
develop discipline.

Another thing to remember is that even if something you want
or need is "on sale," you will usually pay more for interest
on it than you save by buying on sale if you have to put it
on a credit card. If you think you really do need an item,
use the 7-day rule: Wait 7 days before purchasing something
other than what you've budgeted for. You will often find
that the "need" passes before the 7 days are up.

You may eventually find that there are no more places to cut
and you need to increase your income. This doesn't
necessarily mean getting a second job, although that is a
possibility. Below are some other ways to increase your
spendable money:

First, take a look at your tax return. If you're getting
anything but a small return, you're letting the government
earn interest for itself with your money. You probably
wouldn't let anyone else do that! Consider raising your
exemptions. You can acquire a new W-4 form to fill out from
your Human Resource department or manager.

Second, save or invest wisely to obtain dividends. This is
money that you don't have to work for! This is an example of
money working for you.

Third, acquire new skills that can help you get a promotion,
or even a new job. Get your GED or college diploma, if you
don't have one. There is a lot of financial aid available,
and you may even be able to attend college for free. A small
investment of a few months or years could yield big
dividends for many years.

Fourth, consider starting a home-based business. There are a
host of tax deductions for home businesses, not to mention
the extra income that may stem from just a few hours a week.
Although a home-based business is not for everyone, you may
enjoy it enough to turn it into your next career!

Living within your budget is entirely possible, but you must
have a good enough reason to motivate yourself. Track your
expenses often. Evaluate what is working and what isn't. Cut
expenses where you can, increase your income if you need to.
Decide to make changes and do them today. There is great
freedom in knowing that you control your money, not the
other way around.

[yonksgirl]

What are some steps to take or corners you cut to save money and live with in your budget/ (if you have one ;) )

[yonksgirl]

ANyone want to make a budget for one week and do simple things to save money, like make your coffee at home. Lets see how much we can save combined! I think it would be fun! Anyone in ? We will start on Wed. So everyone can see this before we start. Every day just log on and type how much you saved for that day and what you did to save it. Then at the end of the week we will all add it up. I think we will all be amazed at what we save!

[Margarita]

That's some good info. It was interesting to read because I've never heard the cash recommendation before. Here's my experience:

We live on a "budget" in the sense that I track everything we spend. We don't spend a lot on entertainment or unnecessary things, so so far we haven't had to actually limit ourselves to living within the budget. Instead, our budget matches our expenses. I adjust it yearly to account for changes in our lifestyle and rate increases (gas, electric bills, etc.). My goal is to break even, although we usually end up a bit short at the end of the year. However, we have plenty of money in savings, so that hasn't been a problem. In addition, the shortfall is generally caused by some big, unexpected expense: surgery, having a baby, surgery again.

The ATM fees is a big pet peeve of mine. B used to get money and not pay attention to whether it was from a Wells Fargo ATM. He'd say, "It's only $2." I told him it was like flushing money down the toilet. Over time, "only" isn't so little.

The better phone plan is something we could use. We don't call long distance that often, and I'm thinking of cancelling our service and just buying phone cards. Someone we know does that.

If you borrow books from the library, also be sure to return them on time!!! Same goes for any rental - movies, games, etc. Late fees are just like ATM fees.

Regarding cash, we try to follow my accountant's (who's my dad) advice and not spend or even have cash available. That's where money easily gets lost. Cash is so hard to keep track of...and so easy to spend. B used to have cash all the time, not get receipts, and then I couldn't balance our books. It was so annoying. Now, he's basically not allowed to carry cash, and I only keep $20 for emergencies. (I'm way less tempted to spend money than he is.)

One of the main things you have to do when keeping to a budget is to track every penny. Most people hate to do that, but you have to if it's going to work. If you don't know where your money is going, how can you save it?

Wow, I can ramble. ;)

[myhomescape.com]

Make a personalized budget by tracking your expense closely for a few months. Separate expenses into main categories, such as: Bills, Transportation, Entertainment/Dining out, Investments, etc.

At the end of every month sort through the expenses and highlight which expenses were not necessary, and which are regular expenses. Over a few months of tracking this way you can usually come up with a budget that works best for you. (Hope that is clear, sorry if it isn't)

The cash method does not work for everyone. Personally if I have cash in my pocket it is gone in a matter of hours. (burning a hole in my pocket) For my wife and I we used debit for ordinary "staple" expenses, and VISA for entertainment, and misc purchases. The VISA is then paid off every Wednesday. This system works for us, and we avoid the smaller purchases ("The Latte effect") because we hate using credit/debit for such small purchases. My point is, find what works for you. There isn't a "rule" for budgeting.

The envelope system is also another idea. Take out certain amounts of money and put them in specific envelopes for each of your major spending areas. So much in one envelope to spend on groceries, and so on.

Good luck. :thumb2:

[MandiDawn]

I've been working on a new budget since, well forever but this time was Jan 1. I did great until this month when we started doing house repairs. I use the elevlope method. Every friday I pull $xxx out of the Atm and that is my money for the week. half for Groceries and half for myself. My money is for myself and anything I need. It goes for gas, lunches at work, pops/coffees, (smokes but I just quit so whoo-hoo!!), and also haircuts, waxing, dry cleaning, oil change, movies to rent, dinner out, ect. It goes pretty fast, and you really have to think "oh, getting hair cut next week, need to not spend so much this week so I have left over . . ." I feel I spend less this way since I can see exactly how much i have left and don't want to run out, if I used my debit I would be like "oh, I have enough, I can buy this and still gas up my car later and la la la"
Well I did so great on this plan, paid down a few credit cards, ect until we started redoing the ceilings last month. Then it was $40 for paint today, $30 for light switch covers, ect. Tons of misc expenses!!! So that screwed up my budget totally. I just got paid today so I'm looking forward to jumping back into my budget soon.

It's nice to hear about what others do since it might be the solution you are looking for, But in the end I agree with what myhomescape said
My point is, find what works for you. There isn't a "rule" for budgeting.

[myhomescape.com]

Also make sure you set aside $X for savings. I recommend at least 10% of each paycheck. Limit the impulse buying. If there is something you want, save and budget for it. If you see something you "must" have...take a lap around the mall, and think it over for a bit. Makes you question if you really "need it"...

[andrea]

Those are some very good reads, we used to budget but not anymore. but reading that did remind me that i have some movies i need to return

[MandiDawn]

Starting this month I am trying to reduce my grocery bill by $100. I'm sure since this is the first month I will go over, but hopefully by june I will be fine with it. I'm really watching sales, using coupons and mostly buying stuff in bulk when on sale. I got 6 loaves of bread yesterday for $6. So happy about that :)

[andrea]

woo hoo hopefully you can stay with the 100 dollars