One tip that I use: If you work overtime don't include it when making a budget, base it off what you would make in a 40 hour (or 80 hour if you get paid every two weeks like me) work week. That way you can take the extra made working the overtime and put in the bank or use it for something else.
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Budgeting Tips?
- Thread starter trouts mom
- Start Date
That's why you reverse and start with savings, then the rest. I used to do the opposite and seemed nothing was left. When I reveresed it, I was surprised that there WAS some savings money there
You can use jars, envelopes, etc. - as long as you don't "borrow" from one to the other you are ok. That's the difficult part
You can use jars, envelopes, etc. - as long as you don't "borrow" from one to the other you are ok. That's the difficult part
I go to the grocery store and get what I need to last until the next payday and fill up the car with gas before I start spending money on non-essentials.
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Can you get direct deposit for your paycheck? Just wondered. Perhaps, if you didn't have the cash in hand, you wouldn't be as tempted to spend it?
Also, if you're worried about saving, can you have some investments, in small amounts, deducted from your pay? I have Savings Bonds (yeah, I know, you don't get rich on them, but they don't require a large output to buy when using payroll deduction. They are tax-free until you cash them in, and actually usually get a better interest rate than what's out there now in CDS, for example. They are totally backed by the govt, and are very safe. I get $50 taken out each pay--you can do as little as $5.) I also have my IRA deducted, and extra pension, and a slush fund savings account--which I had to open to get the IRA. I aslo have deferred compensation (mutual funds) deducted. This is very hard to touch until retirement, but mine has done quite well over the past 10 years. I now have $37,000 in it that I never missed out of my pay! Also, when I get my annual raise, I always take that amount, and increase my amounts of one of the above funds.
If you can't do any of the above: start by cleaning out your purse every week, putting any change (and try to throw a bill or 2 in) in a jar. It's simply amazing how much this adds up. I've been known to break a bill, in order to generate change for my jar! (OMG, am I CHEAP.) Or, even use the jar method just for "fun" money, and save your regular pay for bills, etc. Get into the spirit of the thing--make it fun to see how much change you can save up--or maybe, I'm just a pathetic person, who needs a life!
Another trick: you can buy Savings Bonds online. When I used to get an urge to go online, and buy something I really didn't need (I LOVE eBay), I'd go to the Treasury's website, and use my credit card to buy...you guessed it! Craving satistifed; no waste of money; and, by "buying" something, I actually "saved" money!
When I was single, living with Mom, I used to make savings a game, by challenging myself to save as much as I could. It's the only thing I miss about being single--I used to sock away most of my pay for retirement!
Another trick: when a long-term loan payment is done, I take that payment amount, and invest it. I did this with my 5 yr car loan, paying it off in 2.5 yrs. I figured, if I never missed that money then, why not keep "spending" it by saving it? I still don't miss that $223.75, and that was over 7 years ago. In fact, it spurred me on to challenge myself to save even more.
Take heart--you can "cure" your spending problem. Until DH met me, he was a big spender. He had $40,000 worth of debt (on "toys") when he met me June, 2003. We got engaged in 9/03. By 12/03, he had gotten his debt down to $26,000--all of this with a life-change event (moving in together in an apartment that was almost twice his previous rent; and getting a new job). We'd be in the grocery store, he'd throw an impulse purchase into the cart. I used to shoot him a look; he quickly learned. He'd say, "I really should put that back, I don't need it."
(My kinda guy!). I got him to learn to save, and to finally save for his retirement. I told him, "Honey, you're going to graduate summa cum laude from the MargeCat School of Economics!" He still has a bit of debt (he got a debt-consolidation loan shortly after we bought the house. Those 29% credit cards were KILLING him., but he's really turned his way of thinking around.
Also, if you're worried about saving, can you have some investments, in small amounts, deducted from your pay? I have Savings Bonds (yeah, I know, you don't get rich on them, but they don't require a large output to buy when using payroll deduction. They are tax-free until you cash them in, and actually usually get a better interest rate than what's out there now in CDS, for example. They are totally backed by the govt, and are very safe. I get $50 taken out each pay--you can do as little as $5.) I also have my IRA deducted, and extra pension, and a slush fund savings account--which I had to open to get the IRA. I aslo have deferred compensation (mutual funds) deducted. This is very hard to touch until retirement, but mine has done quite well over the past 10 years. I now have $37,000 in it that I never missed out of my pay! Also, when I get my annual raise, I always take that amount, and increase my amounts of one of the above funds.
If you can't do any of the above: start by cleaning out your purse every week, putting any change (and try to throw a bill or 2 in) in a jar. It's simply amazing how much this adds up. I've been known to break a bill, in order to generate change for my jar! (OMG, am I CHEAP.) Or, even use the jar method just for "fun" money, and save your regular pay for bills, etc. Get into the spirit of the thing--make it fun to see how much change you can save up--or maybe, I'm just a pathetic person, who needs a life!
Another trick: you can buy Savings Bonds online. When I used to get an urge to go online, and buy something I really didn't need (I LOVE eBay), I'd go to the Treasury's website, and use my credit card to buy...you guessed it! Craving satistifed; no waste of money; and, by "buying" something, I actually "saved" money!
When I was single, living with Mom, I used to make savings a game, by challenging myself to save as much as I could. It's the only thing I miss about being single--I used to sock away most of my pay for retirement!
Another trick: when a long-term loan payment is done, I take that payment amount, and invest it. I did this with my 5 yr car loan, paying it off in 2.5 yrs. I figured, if I never missed that money then, why not keep "spending" it by saving it? I still don't miss that $223.75, and that was over 7 years ago. In fact, it spurred me on to challenge myself to save even more.
Take heart--you can "cure" your spending problem. Until DH met me, he was a big spender. He had $40,000 worth of debt (on "toys") when he met me June, 2003. We got engaged in 9/03. By 12/03, he had gotten his debt down to $26,000--all of this with a life-change event (moving in together in an apartment that was almost twice his previous rent; and getting a new job). We'd be in the grocery store, he'd throw an impulse purchase into the cart. I used to shoot him a look; he quickly learned. He'd say, "I really should put that back, I don't need it."
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I have 4, $2.00 bills in mine--and I know where they came from--MIL's "dirty bingo" game we played at Christmas--she hid $2.00 bills in the prizes! I'm so cheap, I'm saving them for something--not sure--but I can't bring myself to spend them! Yet.Originally Posted by catlover19
Me either. I found $4 in the bottom of my purse today and I have absolutely no idea where it came from.
Also, Dh's uncle and aunt gave us a check for Christmas. I still have my half (as from the past 2 years) in my piggy bank. Just waiting to find something to spend them on...I also have my half of 2006's tax refund. (I did spend $200 of it on a recliner, though.)
Ok, here are some great ways to stretch your money. Some people feel weird about second hand shopping, but years ago when I had a friend who had more than me and made les money I asked her how she did it. Come to find out, her beautiful wardrobe came from second hand stores, as did her gorgeous crystal and china and book collection and paintings etc. etc. You can easily find things that have never been worn with tags still on, or used clothing that looks new. I have bought angora and beaded sweaters, dresses that would easily cost a hundred bucks, for ten bucks or so.
Here is another great place: Dollar stores!!!! You can get laundry soap and household goods for cheap, gift bags, cards, food items, velvet wine bags, stationery, socks, coffee mugs, holiday items etc. etc.
For meals you can save money by having some pasta and rice meals. There are so many ways you can prepare meals with pasta or rice and it's so cheap.
Save whatever change you have in jars. After a while, it really adds up. Watch to see where your spending goes. Do you often have breakfast, lunch or supper out? Buy coffee at work? Lottery tickets? Keep a list of how your money is being spent. Yes, budget! I have envelopes for different things and put so much money in each envelope for bills etc. Good luck hun!
Here is another great place: Dollar stores!!!! You can get laundry soap and household goods for cheap, gift bags, cards, food items, velvet wine bags, stationery, socks, coffee mugs, holiday items etc. etc.
For meals you can save money by having some pasta and rice meals. There are so many ways you can prepare meals with pasta or rice and it's so cheap.
Save whatever change you have in jars. After a while, it really adds up. Watch to see where your spending goes. Do you often have breakfast, lunch or supper out? Buy coffee at work? Lottery tickets? Keep a list of how your money is being spent. Yes, budget! I have envelopes for different things and put so much money in each envelope for bills etc. Good luck hun!
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That is a great idea! I am a salaried employee though, so it wouldn't work for me
So, do you fill up the gas even if its not empty? I usually fill up every 3 weeks or so when my tank is empty...are you suggesting get it filled (obviously for less money) when it is maybe half full or whatever?
Wow, thanks for all your input. Unfortunately I can't get direct deposit for my paychecks because my employer is an agent of a small 5 employee office.
I do have savings and investments apart from all of this here
I will have a loan (student debt) paid off in a month or 2
You are not pathetic at all! I would say you have got it together, which is SUCH a good thing
Alrighty, well I am cheap too alot of the time, and I do shop at the dollar store for alot of the above mentioned items. I also pretty well exclusively eat pasta or rice..(If I'm not eating toast or cereal)Originally Posted by Arielrain
Here is another great place: Dollar stores!!!! You can get laundry soap and household goods for cheap, gift bags, cards, food items, velvet wine bags, stationery, socks, coffee mugs, holiday items etc. etc.
For meals you can save money by having some pasta and rice meals. There are so many ways you can prepare meals with pasta or rice and it's so cheap.
Save whatever change you have in jars. After a while, it really adds up. Watch to see where your spending goes. Do you often have breakfast, lunch or supper out? Buy coffee at work? Lottery tickets? Keep a list of how your money is being spent. Yes, budget! I have envelopes for different things and put so much money in each envelope for bills etc. Good luck hun!
I do buy supper out usually at least once a weekend..I do buy lottery tickets too
Thanks for your input!!
That is your best tool. If you have to think about what you're spending, it really helps with the question, "Do I really want it?"Originally Posted by Trouts mom
I do buy supper out usually at least once a weekend..I do buy lottery tickets tooI am going to start keeping receipts and writing EVERYTHING down. I have a feeling, I will be reluctant to write non essentials down and therefore maybe not buy them so often
Thanks for your input!!
I use Excel to budget our money. The only problem is trying to keep my husband from spending it all on games.
I kept reciepts for three months, wrote it all down, and figured out where we are wasting our money, I was shocked how much we wasted, and what we were wasting it on. I decide that to limit somethings, like Tim hortons coffee, Dh was spending around $200 a month, we decide to use pay cards and limit to $20 every pay day, saving $160 a month, I was spending $50 a month I will limit my self to $20.
I always fill up the car on payday even before gas got so high. It's been ages since I filled up, other than on long road trips, because I needed to. I also buy whatever meat is on sale that week. I don't know about in London but here supermarkets have what I call teaser adds. They will have a few things really marked down to get people in the store hoping they will go ahead and buy all their groceries there. The grocery I usually go too has a couple different meats on sale like that and whatever is really marked down is what I will be eating.
You answered your own question, you would be fine if you didn't buy three cd's or go to dinner two nights in a row.
You can still do those budget breakers, but at a price you can afford. for cd's go to the second hand cd store, or yard sales. go to the twilight movie, or the early matinee, and go to happy hours for free food. For free wine and cheese go to an art opening. I do all of the above, plus I always pack my lunch.
You don't have to sacrifice, just be frugal, take advantage of sales. Also, you should save every single month! 50 bucks minimum, try to make it 200.
You can still do those budget breakers, but at a price you can afford. for cd's go to the second hand cd store, or yard sales. go to the twilight movie, or the early matinee, and go to happy hours for free food. For free wine and cheese go to an art opening. I do all of the above, plus I always pack my lunch.
You don't have to sacrifice, just be frugal, take advantage of sales. Also, you should save every single month! 50 bucks minimum, try to make it 200.
Originally Posted by blondrebel76
MONEY LEFT AFTER BILLS?????
Exactly what I was thinking.
That's a good point. Most people don't and that's where they find that they don't have anything for emergencies or retirement. As the saying goes, always pay yourself first, then bills, etc.Originally Posted by GoldenKitty45
That's why you reverse and start with savings, then the rest. I used to do the opposite and seemed nothing was left. When I reveresed it, I was surprised that there WAS some savings money there
You can use jars, envelopes, etc. - as long as you don't "borrow" from one to the other you are ok. That's the difficult part
I did this method for ages and it just wouldnt work. I was spending $400 a month on groceries for just me - that is ludicrous! Not to mention all the little extras.Originally Posted by Trouts mom
I do write everything down..every single time I get paid. I take out the money for bills..and then with the leftovers I lump the groceries, entertainment, gas all together. I think thats where my problem is...you see if I do too many "entertaining" things, it ends up cutting into my grocery money..and this is where I end up. I use my debit card all the time and lose track that way.
This is why I thought maybe seperate jars of cash for groceries/gas/entertainment..so when my entertainment money is gone..thats it..no more fun for Nat
I went old school: The envelope method. I acct for how every dollar will be spent for the month before a paycheck even appears. Then I do the cash in envelopes thing and when it is gone, it's gone. I reduced my spending dramatically this way - and I'm not overspending on non-essentials. (Note: I budget 'blow money" too - it isnt totally without fun )
Oh, and the OP mentioned being short a few days before payday - I can relate! With the envelope method that didn't happen anymore, but before I moved onto that method, I automatically took $40 cash out on payday and threw it in a pitcher as my "broke till payday" fund. That way on Monday or Tuesday before pay Friday I had enough emergency cash for gas/groceries, etc "just in case". I found I rarely needed it so it became fun money! Well, it was mostly spent on hard to budget for things like new glasses.
I got into this habit when I was breaking the CC habit that got me out of my "emergency" jams too regularly.
I'm getting to this thread late, but you have been given a lot of good advice.
Rob and I were the King and Queen of savings when we lived on our own and then after we met. Our goal was to purchase a home/condo as soon as we could since we saw renting as throwing money away.
We didn't buy a car until much later since we wanted to save up that money for the house. We ate at home most of the time but we would go out as well. We often would go to a more expensive restaurants for lunch instead of dinner. That way, it was still a treat, but not as expensive as dinner would be.
I found great recipes and buying tips on the internet for good food at low prices. Also, staying away from brand names on some items also helped us save. Chatelaine and Canadian Living have great recipe databases.
We also tracked our budget and even made up some charts to show us how close we were to our goal. We placed this on the fridge so every day we would see that our efforts were helping to get to our goal.
We also used a similar system of jars/envelopes for different items. We put 'x' amount of money each month into them and once the money was spent, we would have to wait until the next month to use it.
We also never used credit/debit cards. It was all cash purchases so you see what you are buying by handling the cash (not plastic). Also, limit the amount of money that you have with you on a daily basis. Every day when I head into work, I have emergency money on me only. You can't spend it if you don't have it on you.
Plus, I always bring my lunch/snacks with me. I refuse to pay downtown food prices for something that costs half the amount.
See each purchase as an investment. If you were a business, would that purchase be a wise investment or will put you in the hole?
We bought our first condo at 24 and I didn't have any University debt by that point because of our budgeting. We had no financial help from our parents but sacrificed the little things to keep us on track to our bigger goal.
Rob and I were the King and Queen of savings when we lived on our own and then after we met. Our goal was to purchase a home/condo as soon as we could since we saw renting as throwing money away.
We didn't buy a car until much later since we wanted to save up that money for the house. We ate at home most of the time but we would go out as well. We often would go to a more expensive restaurants for lunch instead of dinner. That way, it was still a treat, but not as expensive as dinner would be.
I found great recipes and buying tips on the internet for good food at low prices. Also, staying away from brand names on some items also helped us save. Chatelaine and Canadian Living have great recipe databases.
We also tracked our budget and even made up some charts to show us how close we were to our goal. We placed this on the fridge so every day we would see that our efforts were helping to get to our goal.
We also used a similar system of jars/envelopes for different items. We put 'x' amount of money each month into them and once the money was spent, we would have to wait until the next month to use it.
We also never used credit/debit cards. It was all cash purchases so you see what you are buying by handling the cash (not plastic). Also, limit the amount of money that you have with you on a daily basis. Every day when I head into work, I have emergency money on me only. You can't spend it if you don't have it on you.
See each purchase as an investment. If you were a business, would that purchase be a wise investment or will put you in the hole?
We bought our first condo at 24 and I didn't have any University debt by that point because of our budgeting. We had no financial help from our parents but sacrificed the little things to keep us on track to our bigger goal.
