Budget: Living On A Budget

Living On A Budget
written by Sandy Riggs

In a world where, at the touch of a button, media ads can tell us what products we’ve “got to have” in order to be beautiful, happy, comfortable and popular, it is easy to over spend. Add to that our day to day necessary living costs and soon many of us discover that we have more expenses than income. Everyone, it seems, wants our money.

How can we control our spending so that we can pay our bills and still have some left over for savings and those extras we’d like to have? The following are tried and tested tips that can assist you and your family in planning a budget and sticking to it.

Make a list of all available income and expenses.

Decide which areas of spending are necessary and which areas are luxuries. Everyone enjoys one or two “extras”, but be honest in what you and your family actually need and what you want. Plan ahead for those “extras” by setting aside a small part of your income on a monthly basis to pay for them. Eliminate or reduce expenses that are unnecessary and cause a financial burden such as those extra cable channels or eating out at fast food restaurants.

Set limits for how much you can spend within various categories on your budget list. Also, budget for monthly savings to a savings account that you determine will not be touched except for the purpose you have designated for it. (education, retirement, etc.)

Keep a log of daily expenses so you know where your money is being spent. Keep your receipts. Logging expenses and keeping receipts will give you a good idea of where you spend the most money and, once you set budget limits, can help you stay within your budget.

Pay your bills on time. These days almost everyone charges penalties and fees for late payment. These expenses are costly over time and you can save money each month by avoiding late fees and paying your bills promptly. Businesses keep record of customers’ payment histories and will report late payments and non-payments to credit reporting agencies. If your record shows that you are not prompt about paying your bills, this history will be reflected to other businesses when you need financing for a home or car. Your poor credit/payment history stays with you for 7 to 10 years and will be make it difficult for you if you want to buy anything on extended credit.

Avoid using credit cards and only get into debt for things such as buying a home and paying for an education.

Review your budget on a monthly basis to see how you’re doing financially. Make short and long term goals for how you will get out of debt and how you will spend your income. Weekly family meetings to discuss goals will help to reinforce your plans and ideas.

As you become more organized and financially stable, you will feel less stressed and more able to enjoy the important people and things in your life. Studies show that families who share common values and goals are more successful and content than families who do not work together towards common agreed upon goals and lifestyles. And really, when it comes down to the “got to haves” in life, there is no better feeling than being part of a happy family.

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