Entertain at home instead of going to a restaurant.It's good for your health and your budget. Pay off credit cards each month charge items only for convenience.Here's a list of suggestions to help you cut corners and stick to your budget: This amount can then be increased if you get a raise or pay off an installment loan. And start a "pay yourself first" program by automatically setting aside an amount each month. Ask yourself where you can spend less without drastically cutting your standard of living. Now compare your living expenses and your savings goals.While it's likely that the expense side will need some work, most who undertake this exercise find that a surprising amount of cash is unaccounted for. Setting the limits isn't hard-the trick is living within them.
Then, use the information you've gathered over the past several months to set reasonable limits on the items that fluctuate, such as food and clothing, and those where you have the most flexibility, such as entertainment. Start by listing constant expenses-such as rent or mortgage and car payments-that don't change from month to month. Now, take a blank copy of your expense record and label it "Budget." Instead of recording actual expenses, list what you expect to spend in each category. Understanding and changing your spending habits is the key to successful budgeting. You'll also get a good idea of which expenses you can't change. To get an even better picture, continue to record expenses for several months as you develop your budget.When you review your expenses, you'll probably see areas where you can reduce spending and increase your savings. You'll have a record of your credit card expenditures and your checks, but cash often seems to just disappear. You may be surprised to find that you actually spent more money in those months than you can account for. Using the monthly expense categories you've identified, try to reconstruct your expenses for the past few months. For items you pay just once or twice a year, divide the payment by the number of months it covers and write that amount on the monthly record. First, list all of your expenses for the month, then think about items you pay less often (e.g., semi-annual car insurance payments). Note everything, including how you pay for things: cash, credit card, or check.Īt the end of the month, make an expense record. You might want to keep a pocket notepad handy to record items.
METROPOLITAN LIFE ANNUITY WRITEDOWN MOVIE
Document every purchase by getting a receipt for everything you buy, from the cup of coffee at the drive-up window on Monday morning to the movie tickets on Saturday night. Start by making a list of all the items you spend money on each month: rent or mortgage payment, utilities, transportation and so on. Money going out, however, is often harder to keep track of. If you're like most people, incoming funds are fairly predictable and easily documented-your paycheck and earnings on savings and investments. Understanding where your money goes each month will help you develop a workable budget-the first step to financial security. Many people don't know where their money goes all they know is it's gone too soon. By creating and following a budget, you can have the money for the things you want. In a personal or family budget, all sources of income are identified and expenses are planned with the intent of matching expenses to income. What's a budget? A budget is an itemized listing of money that will come in (e.g., paycheck) and money that will be paid out (e.g., bills), over a specified period of time-usually monthly.