Posts Tagged ‘budget’

How to Save Money in 2010, a New Year’s Resolution

Create and Maintain a Budget

First off, create a list of all your monthly income and also a list of your monthly expenses.  When determining income, list all sources including alimony, child support, side jobs, etc.  In calculating expenses, be sure to include housing, food, transportation, utilities, entertainment, etc.  To gain an accurate reflection of actual expenses, sit down each night and write down expenses, just make sure to save receipts.  Determine if your income covers all of your expenses.  If the answer is no, then some expenses need to be reduced.

There are several advantages to sticking to your budget.  Firstly, most people have set financial goals that they would like to reach in the future.  Sometimes it may be a trip, a brand new car and car insurance, or a college education.  A budget can help people save money to make these goals a reality.  Additionally, many people are crushed under heavy consumer debt.  Without a disciplined pattern of spending, it is virtually impossible to make much headway in reducing debt.  A personal budget will provide the necessary framework to begin eliminating these inflated account balances.

Cut Back on Spending

Firstly, alter credit card behavior.  Start to pay cash whenever possible.  This will help you avoid making a purchase unless you actually have the money available.  If you decide to make a credit card purchase, be prepared to pay the balance off monthly.  This will save a lot of money through avoiding interest charges.  If you already have a credit card balance, then transfer to a card with a low interest rate.  Also, find a card that does not charge an annual fee.

Another tip is to pack your lunch every day.  All of those lunch hours spent at restaurants will add up.  Bringing your own lunch can save you several dollars every day, which will add up over time.

Use your cell phone during off peak hours.  Some people will spend a couple hundred dollars a month on phone charges.  Avoid this by making most calls during off peak times.  Check with your service and plan to find out when you have cheaper or unlimited calls.

Finally, bundle your insurance.  Many insurance companies will offer their customers lower rates if they purchase multiple policies.  For instance, some people use the same agent for multiple cars, and others combine their cars insurance and house insurance.  Always keep in mind that a dollar here and there really begins to add up.  Avoid the temptation of thinking that changing your spending habits wouldn’t save that much money.

Making a commitment to save money in 2010 is the rare New Year’s resolution that is easy to keep, because of the temptation. There are 30 ways to save money in 2010, and this article only show two of them.