Imagine not living paycheck-to-paycheck, a time of confident spending. That moment can be now! Following a few easy budgeting tips will get you headed in the right direction. Money management doesn’t have to be scary — just simple, smart and disciplined. Here are some ideas to get you started.
1. Track your spending.
The word “budget” makes most of our knees tremble, so looking at it as simply tracking where your cash is going can make the idea less scary. Many of us think we know how much we’re spending regularly, but serious monitoring will surprise you. Be sure to track every penny the moment you spend it. Download an app such as Acorns or Mint to help.
2. Change due dates for bills.
Try calling your creditors to ask if they will change the due date so that it lines up more closely with your paydays. Sometimes credit card companies or utility companies are willing to work with you to change your billing cycle.
3. Automatic savings.
Specify a particular percentage of your paycheck to be directly deposited into a savings account each pay period. A good place to start is 10 to15 percent. This will help you save money and reduce the temptation to spend. Bonus: you don’t have to remember to transfer funds, because it will be automatic.
4. Watch savings grow.
Review your budget and progress each month. This helps you stay on track and to see any areas where there might be a problem. It is also a marvelous motivator to see how far you’ve come.
5. 50/30/20 method.
Disburse your monthly income based on needs, wants and savings. Fifty percent of your monthly income (after taxes) would go to needs, 30 percent to wants and 20 percent to savings. If your current spending is not aligned with the disbursement numbers created from this method, simple adjustments can be made to your spending habits. Move things around and/or prune some spending on needs and wants.
6. Food savings.
Pack your lunch instead of buying at work or on the run. Dine out fewer times each month. If you do go out, opt for water as your beverage instead of alcohol or a soft drink that the restaurant industry significantly marks up in price. Plan meals in advance; stick to the grocery list and think about doubling the recipe to have leftovers.
7. Go generic.
Switch prescription drugs to generic brands when available and if approved by your physician. Purchase store brand over-the-counter medications. They contain the same formulas, but you won’t be paying for the marketing of brand-name.
8. Subscriptions and apps.
Reevaluate any subscriptions you might be able to part with, such as magazines, cable, products and clothing. Check with companies like cable or phone to be sure you’re getting the best and lowest rate offered. Swipe through your phone and cancel or delete any apps into which you might be investing money. Stick to downloading free apps.
9. Credit card debt.
Pay the minimum required payment on all cards except the one with the highest interest rate. Putting more of your payment toward that card will help you pay it off quicker. Then move on to the card with the next highest interest rate and work that one down.
10. Cash.
Give yourself an allowance to spend in a week based on your average spending habits for needs such as groceries, gas, etc. Leave your credit cards at home and only use cash. This helps unnecessary spending and gives a visual of how much cash is leaving your wallet.
Happy Saving!
