Budgeting!! The #1 Money Saving Tip
Living within my means and budgeting has been crammed down my throat since high school. My Mom believed whole-heartedly in giving children allowances; and my sister and I both received $40 every 2 weeks. That money was to be used for our school lunch and when we went out on the weekends. Once it was gone, it was gone, there were no back-up credit cards…actually, we were authorized signers on our mom’s credit card, but we knew that was for emergencies ONLY!!! Anyway, this form of budgeting followed me through my college years and really went into over-drive once I got married. From the beginning of my marriage I created a budget expense sheet that was like my bible. I could not spend money w/o checking my budget sheet. I would 1st check to see how much more we had to spend in bills, then go online to check our account balance. Thank God for online banking, that has made this process so much easier. Anyway, once I did the subtracting I was ready to go to spend some money. I personally did not understand how people did not follow these same steps until one day I was watching Oprah (love her!!) and Suze Orman was on the show talking about people who spend thousands of dollars over their monthly income. I was still puzzled, thinking how is that possible. Then Suze stated that they were also thousands of dollars in debt, and I said OHHHH, DUH!!.
Now that we are in this awful and depressing recession everybody is or should be trying to lower expenses and save money. The only way I know how to do that is with a Budget Expense Sheet. Now stick with me, I know it takes a certain level of commitment….BUT desperate times cause for desperate measures. So, I am challenging everyone TODAY to commit to saving money and living on a budget.
Below are 7 painless steps to follow:
Step 1 – Follow this link to download and save your new budget spreadsheet onto your computer. I found on Microsoft templates, of course it is FREE and AWESOME!
Step 2 — Personalize the spreadsheet my adding your monthly expenses and income. Be as accurate and thorough as possible. The spreadsheet has every expense imaginable, but if it missed anything, there is room for editing.
Step 3 — Once everything is filled out properly, copy the completed spreadsheet 11 more time for each month in the year.
Step 4 — Now customize each month to account for birthdays, weddings, prom, graduation, license plate renewal, etc. Really think about this to limit surprises and plan accordingly.
Step 5 — Once you have completed the spreadsheet look at the difference, this will be in red. Hopefully, this number is positive rather than negative indicated that you should have money left over at the end of every month. If not, go to step 6.
Step 6 – Re-evaluate your monthly expenses and see where you can trim the fat. Start with entertainment, food, and personal care. I personally think that food can be the biggest money pit. If you look back at statements and see how much you spend on food every month, I think you will be amazed. For tips on reducing your grocery bill, click here.
Step 7 — The hardest part USE IT.
I would recommend saving this spreadsheet to the computer you use the most, either home, work or even cell phone; I am sure there is an ‘app for that’! My sheet is downloaded onto my home computer. Since my routine is fairly standard.
EXTRA CREDIT – instead of spending any leftover money, transfer the money to your high yield savings account. If you don’t have one, get one!! We use Capital One. The process of setting up your account to transfer money from your primary checking to your savings should take less than a week.
We have to change our mindset from spending money, to making money. Earn some extra cash by selling stuff or make money online by completing surveys. Either way, the goal is to make more money and spend less.
Keep me posted on your progress.