If you are struggling with your personal finances and household budget each month, chances are you have more money going out than you have coming in. This is actually quite common with most Americans as most people do not track their spending. So how do you overcome it?
The first step is to realize that in order to create a balanced budget for your household, what you are bringing in each month and what is going out should be equal. Ideally, you would have more money coming in each month than going out. This is how you start to build a savings to use in emergency situations.
If you are looking for ways to cut expenses and add money to your budget each month, try these 5 strategies. I have used them successfully and recommended them to other people in my classes and they have worked well.
1. Phone lines – Your cell phone and home phone are two areas where you can find money in your budget. If you still have a land line, do you use it? If not, consider cancelling it or reducing some of the extra add ons like call waiting or caller id. The same goes for your cell phone. Is your plan the best you can get for your usage? Take some time to explore these two areas of your budget to see where you can save money.
2. Television – Paying an expensive cable bill? If you are struggling monthly, cutting out the cable bill is one way you can help to get your finances in order. With services like Netflix, there is no need to pay expensive cable bills each month. I have written a detailed report on my website about this using the Roku digital video player.
3. Haircuts – Going to expensive salons can make a huge dent in your budget. Have you thought of trying a beauty school? A beauty school is a great way to get professional services at a discounted price. Just remember, they may take a little longer because they are students, but they are supervised. Just be clear on what you want and you shouldn’t have a problem.
4. Limit eating out and take your lunch to work – Food is one area of the budget that can really hurt you. I mean we all have to eat, right? By limiting the number of times you eat out each week you can help save money. If you want to save even more money, take your lunch to work every day. You can take leftovers or sandwiches to save money and eat healthy.
5. Budget Billing for utility bills – In our area it’s called budget billing but does your utility company offer you to set up your monthly bills so you are only paying an average each month? This can help even out your utility bills so you are paying an average all year around instead of a spike in price during the heat of summer and cold in winter. By paying a monthly average, you know what you are paying and you won’t get an unexpected high bill.
Finding money in your budget can be easier than you might of thought if you just start to look at your finances in a new way. These 5 tips should help you start to do that. Can you think of more ways you can save money each month by making small and manageable changes?
Ready to create your own personalized household budget? Learn how with the Budget Bootcamp: A Common Cents Approach to Personal Finance and Money Management for Women. Find out how to finally set up a realistic budget that you can live with and stick to, cut your living expenses without living like a monk and get rid of debt once and for all, so you can start building up your financial assets! Jenny Kerr specializes in helping women get out of debt and build wealth. Get her highly-acclaimed Budget Bootcamp and find out how to take care of your finances once and for all so you can become debt free!