Let’s face it the economy has been slow to improve no matter what the media says. The cost of goods is continuing to rise while wages stay the same. I don’t know about you but we’ve been struggling to get back on our feet since 2008 when my husband was laid off from his job. While things have improved, we are constantly looking for ways to save money and increase our income.
That’s why I wanted to share five tips for budgeting your finances….because if you are like us and living paycheck to pay check budgeting your money may need to be re-evaluated.
Use cash. In the age of credit cards, this one can be tough. We are not against using credit cards, but are working on using cash more. Using cash keeps you within your budget and out of credit card trouble.
Pay off your credit cards every month. If you are living within your means, then paying off your credit cards every month won’t be difficult. If you are over charging then make it a point to start paying off the smallest balance. Once it’s paid off move on to the next and so on.
Do not spend more than you earn. This one is tough if you aren’t making enough money to make ends meet and are depending on credit cards to get you through your shortfall. Get rid of unnecessary subscriptions to save money (Netflix, Hulu, cable and even your cell phone, if you don’t have a contract and move to a pay as you go). However, temporarily taking on a second part-time job (think paper route, think freelance work or even pizza delivery) will help and hopefully help stop the overcharging.
Limit going out to eat. Eating out frequently can add up. The best thing to do is to forgo eating out while you get your finances in order. Eating homemade meals is better for you anyways. And consider stopping your daily visit to the local coffee shop for your favorite latte. $5 x 7= $35 per week, which amounts to $1820 per year that could be in your pocket or paying down your credit card debt.
Don’t buy what you don’t need. Only buy what you need. Don’t buy a new outfit if you have 20 perfectly wearable ones in your closet. You don’t need the newest, most recent thing on the market. That’s a want, not a need. Suspend all spending for a period of time only buying necessities. This will free up cash or give you time to pay down credit cards.
I guess this last time is a hard one for me to adjust to because I really want to buy a Single serve espresso machine because I am addicted to espresso (some days I can’t seem to function without it). 🙂
These five tips for budgeting your finances will not only lower your stress levels, but also make you feel good about yourself and your spending.
What is your biggest struggle in budgeting your finances?
Theresa has been married for nearly 19 years and is a homeschooling mom to 8 beautiful children. She is also a WAHM (Work-At-Home Mom). In addition to blogging, she is a Virtual Assistant with her own company as well as a subcontractor to a couple other VA firms. Her interests include: reading, writing, traveling, education, being an entrepreneur, being self sufficient by growing her own food through farming and gardening. You may read more about her and her family at Faith and Family Reviews.
Lisa - Between the Kids says
We have the eating out problem. *sigh*
C.j. says
Good Article Another way I like to save money in a way is when I use cash I dump the spare change in a coin jar and at the end of the month I roll it and put it into my highest yielding interest savings account.
Also, I agree about paying off the credit cards With dire straights these days having a good credit score is so imperative. What I try to do is use the one that offers the most cash back if I have to use a card
With eating out I try to limit it to eating out every other month so I have something to look forward too. Also, a good way to help with eating out is if its available I’ll buy a restaurant gift card at a store that offer’s fuel points like Kroger that way I get a gift card and help on saving on gas since the Kroger’s in my area offer 2x’s the fuel reward points on gift card purchases
To save on the grocery bill I’ll take one week a month and shop in my pantry before going to the grocery store with a list. That way I use up the odds and ends canned goods I have and not just buying more of the same ones over and or condiments like mayo and ketchup and I only get what I need on my shopping list