Money Saving Ideas
Each and every person that you speak to about budgeting will have personal money saving ideas. Chances are that some of the ideas will be beneficial and others will be completely useless. People will make suggestions about buying second hand items rather than used, and they will offer advice about ways to conserve on your grocery bill. These are all wonderful ideas, and they will work, but you have to start by creating a budget.
A budget is far more than just a way of keeping track of your spending. It is a way to plan for your future and understand your personal spending habits. It will give you a guide that you can build on. Additionally, if followed, it will enable you to better manage your income and will permit you to reach your financial goals.
When you are working on your budget following these tips will make certain that you are able to stay on track:
1> A budget is a family plan. If you are in a relationship, it is essential that both parties are involved in the planning stage and are willing to work together to achieve the same goals. If both people are not willing to work towards the same goal, the budget is doomed to failure.
2> Always plan to put some money away as soon as your check arrives. You have to build a savings cushion. This money always comes first. Regardless of your debt, make certain that you pay yourself first.
3> Put the credit cards away. Cards should only come out in cases of emergency. They are not to be used on a daily basis. At the beginning of the week or month, each person is given their cash allowance, when this money is gone, there is no more money.
4> All large purchases, i.e. any purchase over a hundred dollars must be agreed upon by both parties. This lessens the chance of either person making an impulse buy.
5> Keep all of your receipts, absolutely everything, and have a notebook to record any and all spending. This includes the coffee at the vending machine and the pack of gum at the corner store.
6> Reassess your budget regularly. Things change, and you need to be flexible. You may realize that you have to re-evaluate things and reallocate your funds.
7> When making your plan, set up a convenient way of paying your bills. Try to have only one or two dates a month when bills are due. Furthermore, you can talk to your creditors and ask them to change the date of your payments. If necessary speak to the credit card companies and have a direct payment method put in place. Late fees and overdue accounts will quickly add up and will throw your careful budget off track.
8> Set up goals. If you want to redecorate the bathroom, plan to put money aside for everything that you need. Do not make any purchases on your credit card. Have a special savings account or keep the money in a cookie jar. This money is for decorating and nothing else.
9> If you discover that you do have money at the end of the month, it goes into your savings. This is not money that you can just spend freely.
10> Create a realistic budget. Remember you have to be able to adhere to this plan. People often fail the first time that they try to setup and implement a budget because they make it too rigid. It is essential in the planning phase that you are willing to compromise and adjust to the needs of your partner.
A budget is going to take time, and you have to give it a chance. You are not going to change your habits overnight. However, it is one of the best money saving ideas that you can implement.