Do you run out of money before you run out of month? These 3 important steps will help get your budget under control AND stretch those dollars to last longer.
Do you run out of money before you run out of month? Do you always seem to be robbing the proverbial Peter to pay Paul? With prices rising on just about everything, and paychecks that seem to be shrinking; how do we keep our financial houses in order?
You have to become a gatekeeper for your money. Having a budget that works is the most important first step. A budget is not simply a list of expenses. A budget is an allotted amount, from the income, for specific expenses. Let's work on balancing the budget.
1. Whats coming, Whats going out & where's it going?
Make 2 columns and label: Coming In....Going out A. Write down exactly how much income is coming in the home.
B. In going out: List all HAVE TO's; (for example: mortgage/rent, utilities, groceries, gas, insurances, medical.) C. List all WANT TO"s; (for example: phone, cable, internet, memberships, credit cards.) D. List EXTRA's; subscriptions, lunch $ (because you can pack), cigarettes, alcohol, etc...
2. Altering The Budget
Add up each area and then add together. Minus the expenses from the income. This is your MAGIC number! If its in the plus, this is what you have extra every month. if its in the minus, this is your monthly shortfall.
A. Call utility companies and get on a monthly budget plan. This will help so you know exactly how much these bills are every month.
B. Review the WANT list and try to shop around for better rates. Most companies are bargaining right now.
C. Review EXTRA's column. Where can you make cuts? A few dollars here and there will make a big difference.
D. Change spending habits.
*Use coupons
*Don't do mid-week grocery runs. Prepare better for 2-4x a month grocery trip.
*Make sure your home is energy efficient.
*Pack lunch and cut down on eating out.
3. Make more money If you still can't get up on the plus side with enough extra income to feel secure, maybe you need more income coming in the home.
A. Figure out the additional dollar amount that is needed to come in the home.
B. Make sure you minus expenses from the new job so that you know how many additional hours you need to work.
Take the first step towards freedom from that bill pile. Get out your tablet, pencil, calculator and get to work. The sense of empowerment you will get from being proactive instead of reactive will help you sleep better.
Pamela A Trone , Personal Financial Coach Pam is a licensed, professional, personal financial coach for Primerica Financial Services. She teaches families how to become properly protected, debt-free and financially independent through education and fundamentals. Pam has also written books on self-help and self-empowerment. If you would like to know more about her financial coaching or her book: 10 STEPS TO A BETTER YOU!, Please visit her website: http://pamelatrone.com Copyright 2008 Pam Trone
