If you caught me on WTHR’s Weekend Sunrise yesterday AM, you might have heard me sharing some of my favorite “Budgeting Basics” tips. I thought I’d share them here in print today, along with a few links you can read describing how budgeting helped us pay off over $127K in debt.
1) You have to change your mindset. Most people consider budgets a bad word {the worst “b” word out there}. So you have to begin by realizing that a budget isn’t something meant to penalize you or hold you back. It’s meant to help you live more freely and remain in control of your finances. There was a point in time that I felt unsure about how much we had in the bank and/or what was left to spend for the month. Having a budget doesn’t mean you won’t have any fun and until you change your mindset, it won’t be successful.
2) Begin by tracking your expenses. For 30 days, collect your receipts. Throw them into a jar or envelope {and have your spouse do the same}. Spend regularly. Don’t be an Ebenezer or a Real Housewife of any city. Don’t be unrealistic either direction. At the end of the 30 days go over the receipts to gauge how much you really spend per month.
3) Be sure you know how much you make, too. Sounds ridiculously simple, but you must spend less than you make.
4) Tame your tongue. Most people veer off budget when it comes to food – either the grocery store or the drive thru. You have to be intentional when it comes to feeding your face. Which means that you must develop a plan. Planning meals doesn’t have to be complex. There are apps, online services, and plenty of websites that can help you get on track. And you can easily swap days or sub sidedishes. The point is to make sure you have all of the ingredients on hand to make a 5-7 worth of meals. It’s totally fine to dine out as long as you budget for it.
5) Operate on a CASH based system. You spend less $ when you use cash than plastic {even if that plastic is a debit card}. It does take a little extra effort but overspending by $5-10 each week really adds up. If you have cash, when it’s gone, it’s gone.
6) The 3-5 Item Rule. Since a lot of people do go off budget at the grocery store, when you are shopping {before you check out} look in your cart and put back 3-5 items. It easily deducts $5-10 from your bill without a single coupon. AND I’m guessing unless you’re a strict list keeper, 3-5 items have jumped into your cart while shopping {this can be especially true if you have children}.
For more posts on budgeting successfully, check out:
- 4 Keys to Getting Out of Debt
- Day 8: 31 Days to Reducing Your Debt “Count the Cost”
- Day 9: 31 Days to Reducing Your Debt “Spend Each Month {Or 3-6 Months} On Paper on Purpose”
Unless something changes {which is always possible with news}, you can see me again this coming Sunday at 7:45 AM on WTHR. This week, we’ll chat about my favorite Back to School Deals of the week!
