7 Money-Saving Tips to Help You Stop Worrying About Money

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Budgeting is something that no one like thinking about.

Okay, some people do — those who know the truth about budgeting: with just a few misconceptions busted and some good budgeting ideas in your arsenal, we promise you'll learn to LOVE budgeting!

You might be asking how someone could like budgeting; the answer is easy.

You'll have all the knowledge you need to start spending money stress-free on the things YOU want to spend it on once you know where your money comes in and where it goes out.

 

 

1) Begin with your costs.

When learning how to create a budget from beginning, it's easy to become overwhelmed.

The best (and safest) approach to get your budget off to a good start is to get those annoying costs documented and out of the way immediately. These may include the following:

Mortgage/Rent\sGroceries/Food\sInsurance

Gas/Transportation

Payments for automobiles

Payments on a loan

Payments by credit card

Gifts\sSavings\sEtc.

"Show me your budget, and I'll show you what you prioritize in life," a wise man once stated. It's critical to begin with all of your life's needs, then fill in the blanks with your wishes. Make a list of your basic requirements as spending (new clothing is probably not one of them), and then make a list of your other expenses.

 

2) If at all feasible, include your spouse/partner/family.

Many families entrust their financial management to a single individual, which is a terrific way to set everyone up for failure.

How can you expect to keep to a budget if no one else understands how much is acceptable to spend on clothing or entertainment, for example? Is it purely by chance? We've been together for almost 7 years, and we've learned that communication is essential. Too frequently, we hear of married couples who aren't on the same page when it comes to money. Even if you have opposing ideas on money, budgeting together offers you a feeling of understanding.

Find a friend to be your financial check-in buddy if you don't have a family member to assist you.

If your children are old enough, include them as well. You'll not only be setting a good example for kids, but you'll also receive assistance in keeping to your own budget. You may hold each child responds to their own money restrictions if they each get a predetermined line item amount each month (either as a regular allowance or purchases-by-request).

 

3) Make your zero-budget plan PRIOR to the start of the month.

A zero budget, according to Dave Ramsey, is the most effective technique to ensure that every money you earn is accounted for.

Even a simple budget spreadsheet for tracking your income and spending may be quite beneficial in getting you started on the correct road.

 

We've just recently started budgeting to zero, but let me tell you, it's been incredible. We used to budget in a momey manner to see how much money we had left. The money we had left would go into either our savings account or our Betterment "nest egg" account.

Every month, we now budget down to the last dollar. This can help you have a better knowledge of your monthly finances. Whether you place the "leftover" into an amusement fund, vacation savings, or retirement savings, you're still ensuring that nothing is left "on the table" when the budget is finished.

 

4) Be adaptable.

Be flexible with your budget because it does not have to be the same from month to month.

 

 

For example, we spent a month skiing in Canada's Mont Tremblant. Obviously, when you go on vacation, you will incur additional costs. Make every effort to plan ahead for these upcoming expenses, putting money aside in the months leading up to the trip and, if possible, shrinking a couple of categories after the trip, such as cutting back on work lunch costs by meal planning or not allowing yourself an entertainment budget for a month or two.

 

Other expenditures to consider that may vary from month to month include:

 

Birthdays

Christmas/Holidays

Vacations

Utilities

Insurance

Visits to the doctor

Make sure to account for any of these variable expenses in your budget at the beginning of each month. For major budget expenditures, such as Christmas, being prepared early is a great idea. For example, focusing on saving away or earning extra money for Christmas in advance is a wonderful idea.

 

You might also want to include a "miscellaneous" category for those one-time, unusual costs that come up from time to time. If you're on a tight budget, keep it to around $60 or less!

 

5) Make paying off debts your top priority.

 Whether you utilize the snowball or avalanche technique to pay off your debts, the only thing that counts is that you get them paid off as soon as possible! You want debts off your shoulders as soon as possible for two reasons: first, to reduce the stress that being in debt generates, and second, to give yourself as much additional income to invest as feasible. If you want to be wise with your money as you get older, you'll have to accept the fact that you'll have to give up some pleasant budget items in order to eliminate your debt payback budget items. If you're looking for some motivation, look no further.

 

6.If you're strapped for cash, make budget cutbacks.

This is the portion of budgeting that might depress people and lead them to believe that budgeting is a chore – and perhaps force them to abandon the entire endeavor.

Unfortunately, whether you're paying off debts or simply trying to make ends meet, it's often unavoidable to start cutting costs.

You might certainly make a few extra money in the following places:

Your cable bundle should be reduced or removed entirely.

Reduce your consumption of electricity (such as turning the thermostat down just 1-2 degrees and wearing layered clothing)

Water consumption should be reduced.

 

Reduce the number of times you go out to eat or eliminate it totally.

Get in the habit of saying no (to gift exchanges at work, nights out with friends, special events whenever possible, etc.)

Trying to get reduced expenses from each firm you do business with

Spend less on groceries (or get cashback when you do shop)

 

7) Maintain focus on your objectives and ideals.

Just because your well-off buddy thinks it's ridiculous that you don't have a manicure or a new wardrobe category in your budget doesn't imply you need one.

 

If financial independence is your top priority, don't let anybody but you and your spouse tell you what should and shouldn't be in your monthly budget.

 

You have every right to incorporate anything you see fit in your budget as long as you anticipate slightly higher spending and are prepared in case of unexpectedly reduced income each month.

If your objective is to just cut back on part of your expenditure, start with only two or three areas and work your way up from there.

 

While many people believe that "leftover" money should be put into a "fun" or "entertainment" category for joyful spending, you may want to put all of that money into completely financing your retirement accounts, or perhaps you're saving for a down payment on your first house.

 

Whatever your own financial objectives are, make a list of them and stick to them. If you encounter some skeptics, simply accept their point of view and go on.