Budgeting - Get a Grip on Your Money

Your folks probably tell you to budget your money. First of all, it sounds like a homework assignment. Second, it sounds like giving up the things you want.

Getting a grip on your money situation isn’t that difficult. It boils down to one simple equation each month

The Money In - Money Spent = Money Saved

If you’re the detailed type, make a list of all the ways you spend money. If you’re the cerebral type, just add it up in your head. The trick here is to be honest and think about the little items you spend money on too. If you’re buying a $5 tall decaf frappuccino (with whipped cream of course) twice a week, that adds up to $40 a month!

Some items to consider:

Are you saving as much as you’d like? Or is the “money saved” amount in the negative? If it is, you may be heading for trouble. You’re spending more money than you’re making.

Think about ways to cut back to bring your money flow back in balance.

You may not be able to change your rent or car payment, but maybe you could check with your cell phone carrier to find a more economical minutes package? Ask friends and family where they go for a haircut and highlight – it may be less expensive than the pricey salon you go to now.Get a small $2.50 soda at the movies instead of the $4 large. Are you smoking? Your wallet and lungs will both thank you for giving up that habit.

Don’t get into the red, start now with small changes that can really add up and you’ll see your savings grow. You won’t be so stressed out, and you’ll have money when you really want to buy something, or in an emergency.

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