Successful Budgeting By Debbie Dragon At Isnare.com Ezine Articles

The trouble with most budgets is the same reason why most diets fail. People who try to diet start depriving themselves of all the foods they love to eat, and all day long- they’re thinking about what they can’t have. When most people try to budget, they try to save more money, but the only way to save more money is to reduce spending. A person on a strict budget is like the dieter who is thinking about the food they want all day in that the budgeter is thinking about all the things they can’t buy in order to save money.

It is easier to reduce your spending than it is to save more. Budgeting should be learning how to spend your money better, since spending is what we do best with it! People typically try to save money with what is left over after expenses and spending has occurred, but most of the time, it’s too late. It’s like turning the television off after the lightening has already hit the wires and burned it out- turning it off is the right thing to do, but it was done too late.

Use a budget worksheet to determine where your money is going. (http://financiaplan.about.com/library/blbudget.htm) and to determine what expense categories have room for smarter spending. For example, instead of spending $80 a month for your health club, why not take up jogging or walking around the neighborhood, swimming in the local town pool, or some other health activities that can be done for little to no money? If your entertainment expenses include a weekly call to the pizza place- consider making your own pizza instead. Homemade pizza is just as good as delivery, and you can even control the toppings and save a decent chunk of change by the end of the month.

Some of your expense categories contain fixed expenses, although with a closer look, you may find ways to trim those expenses each month, too! Start with your phone bill. Are you paying for a long distance plan, but you’re only making a few long distance calls a year? Consider cutting back to the bare bones local calling plan and you could save about $200 a year. Paying for monthly service on a cellular phone that only gets used a few minutes a week? Switch to a pre-paid phone. The per minute rates on pre-paid phones are higher, but if you aren’t using the phone often enough, it’s not financially smart to pay $30-$50 a month just for access to the phone.

Money spent on groceries is often a category that can be trimmed down the most. Start checking your newspapers for coupons to save on items you already buy, and buy some items in bulk. Switch to generic brands rather than name brands. The savings may not seem like much, but over time those pennies will make a difference. Buying convenience foods is much more expensive than preparing your own- so if you are used to buying boxed and packaged foods for quick meals, you may have to make some time on a weekend to prepare several meals at once to save time- and money.

Smarter spending is essential to increasing the amount of money you’re able to save. Budgeting doesn’t have to be the scary word that people make it out to be- and even the average American family with about $50,000 in annual income can take control of their financial lives with smarter spending.

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