Everyone needs a budget. Everyone! It doesn’t matter if you make $30,000 a year or $300,000 a year. You need a budget. You need to know exactly where your money is going because i you don’t, before you know it, you’ve spend more then you’ve earned and you have no idea where it went. That’s when trouble begins and those dreaded credit cards come out. Because you still need to live, eat, do and if you’ve spent more money then you’ve earned, well, you know what happens next. Charge, charge, charge. And the dreaded cycle begins.
Shortly, I will be showing you how we keep our budget but for now you need to take a long hard look at what you are spending and where it is going. Here are some prelimarly ways to make some cuts in your yearly spending. Once you’ve made some of these cuts you can really sit down and map out a plan. You’ll be shocked at how much you can shave off your budget from some simple changes.
1. Make Your Own Coffee
Cutting out coffee purchases twice a week can save you $6.00. Total yearly savings: $312. Image if you only made your coffee at home. Huge savings!
2. Dry Cleaning
Cut back on the amount you send to the cleaners. Wash & ironing those dress shirts saves around $10 a week or more. Total yearly savings: $520
3. Order Water at Restaurants
Soda and alcoholic beverages jack up the price of your restaurant tab pretty quickly. Order water when you are out to eat. Ask for lemon or lime to add a little flavor. Saving for 2 each week is around $4.00. Total yearly savings: $208
4. Brown Bag Lunch
Pack a sandwich, salad. Or grab one of the cheap frozen meals we score. Do that 3 times each week for a savings of around $24 a week. Total yearly savings: $1248
5. ATM Fees
Avoid ATM fees by going direct to your own bank. Or pull out the extra cash you need at the store where there is no fee to do so. Two trips to withdraw money and you’ve emptied your bank account by about $6.00 a week. Total yearly savings: $312
6. Phone Bill & Cable bills
Go over your phone & cable bills. Do you have services on there that you don’t even use. Call waiting, call forwarding, TV stations you hardly watch? We cut a lot out of our bill and saved $25 a month. Total yearly savings: $300
7. Use The Library
Don’t buy books when you’ve got a free resource for any books that you want for FREE. Use your library, it’s free! Total yearly savings: $360 (if you purchased 1-2 books a month)
8.Drink Tap Water
Forget the water bottles. Buy yourself an nice, reusable, water bottle and fill it with tap water. Add some lemon or lime to add some flavor or throw in some free or cheap Crystal Light. You could easily spend $3.00 a week on bottled water. Total yearly savings: $156
If you go every 6 weeks to get your haircut, stretch it out to 8 week. Just by skipping a couple of weeks you reduce the amount of times per year from 8 haircuts to 6. If you spend around $45 per haircut that can really add up. Total yearly savings: $360 (for a family of 4)
Just from these simple changes you can cut out around $3400 a year. Of course every family is different and has different areas that they can cut, this is just something to get you thinking.
Let us know what areas you have or will cut.