Spend Less Save More : Budgeting Tips

Budgeting tips: Develop a savings plan that fits your lifestyle and you'll be more likely to have success. Check out the following financial situations and see what a good budget can do to correct them.


Problem: Your bills come due throughout the month, and you worry about having enough in the bank to cover them.

Solution: Pay your bills on payday. The easiest way to avoid overdrawing is to pay all of the bills that come due within your pay period at once. If you pay online, then use your banking system , most have them now to schedule your bank to pay your bills on the day you choose , then you will have an accurate account of your bills and savings.


Problem: You overspend and rack up credit card debt.

Solution: Use the envelope system. This method is the best way to cover allotted expenses if you don’t trust yourself with a debit or credit card. This just means you set up an envelope for every expense and allot a certain amount for each expense and then you won’t go over that budget if you don’t have the money to spend. Put budgeted amounts of cash into separate envelopes for each category. If you reach into your grocery envelope and nothing’s there, eat from the pantry until the next payday, or pull cash from an envelope that can spare it. 


Problem: Details are not your strong suit, so assessing how you're doing on the budget is a pain.

Solution: Automate your budget tracking. Using credit and debit cards is the simplest way to keep track of most of your purchases. Manilla and Ready for Zero can help with this.  Both automatically updates information from your accounts and sorts transactions into categories. Check in for a complete picture of your spending. If you’re going over budget in any category, you’ll receive an e-mail warning.


Problem: You need to put money aside for taxes, an emergency fund and a vacation, but want to keep the funds separate to avoid dipping into them.

Solution: Set up your savings account as one of the bills your bank pays for you each month and if you need it you can easily access it. Another way to save is using the 52 week challenge deposit a little each week. O f course the old tired and true change jar you will be surprised with the amount of change you can collect in a month on average most people can save $25.00 a month which adds up to $300.00 a year.

Problem: Your monthly income fluctuates.

Solution: Build a short-term emergency fund. Make sure it contains at least four weeks of savings, so during your leanest times you can get by. Then calculate a bare-bones budget for the lowest amount you expect to be paid. Include basic necessities: rent or mortgage, utilities, car payments, groceries, etc. During your flush months, plan to replenish anything you borrow from your fund. Or build a budget based on your average monthly earnings over the past 12 months. If you opt for this strategy, note that when your paycheck rises, you will need the discipline to save extra cash to cover shortfalls in your low months. Trust me I know this is my reality and I know it can be difficult to be disciplined, but if you are in those lean months you will feel more secure and a whole lot less stressed. For more tips and savings  visit www.where2save.com 


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