Setting a budget is a time honored tradition, it’s like making a New Year’s resolution, in that the hardest part is sticking to it.  Everyone wants to get out of debt, but it’s not as easy as we all think.  There is no quick fix, no magic pill, and no hidden treasure chest in the back yard.  Take a look at your current spending habits to see where you can make changes to help you stick to your budget.  To make your budget a reality, set yourself limits that you know you can stick to and then come up with creative ideas on how to keep yourself in line.  Here are some suggestions:

1. Low-Cost Items:  Take a look at the low-cost items that you routinely use and see where you can save.  Maybe the toothbrush you buy at Target for $3.50 can be purchased at the dollar store for only $1.00.  Try replacing your daily latte with a cup of regular coffee mixed with hot cocoa, or opt 2 days a week to drink the free coffee at the office instead of going to the local latte shop.  Check out your liquid soap, it cost usually 3 times what a bar of soap costs and is used up quicker due to the packaging.  Using these simple ideas for the low cost items that you routinely purchase can save you $10 to $15 dollars a week which will add up to $520 to $780 a year. 

2. Eating out:  Restaurants are a great way to treat yourself, but the dollars will add up quickly.  Eating out once a week at $12 dollars a lunch adds up to $624 a year.  If you eat out more than once a week you will double or triple that amount.  If you cannot give up eating out, then order a meal that can at least be divided and saved for a second lunch to feel like you are eating out twice a week. While out, try ordering water, rather than a costly beverage to keep your check lower.

3. Discount shopping:  While everyone loves designer labels and dressing well with today’s fashion, there are many ways to make your money last longer.  There are many discount stores that carry designer labels at a much reduced cost.  Most of these stores even do additional markdowns after the clothes have been on the racks for some time.  Purchasing out of season is also a great way to get discounted brand name clothes at reduced prices.  Buy a great sweater in May could save you up to 50% off the original price, put it in the closet until next fall and it will be just like new.

4. Home-related expenses:  Take a look at your household expenses to see exactly what your monthly costs are and where you may be able to cut corners.  Turning off excess lights, unplugging items that have a clock, lowering your air conditioning or heating levels when you leave for work, and installing florescent lights will help reduce monthly costs.  If you really don’t watch cable that much or don’t use the gym membership you purchased, consider cancelling these items to save yourself some extra money.

5. Automotive expenses:  While an automobile is a necessity in most people’s lives, the maintenance costs can blow a budget if you have not planned for them.  Most new vehicles today can go up to 5,000 miles before an oil change; this could save you two or three maintenance visits a year.  When you do get your oil changed, keeping up with all the required maintenance items can make you car last years longer than you expected.  Car washes are also an added expense, washing your car at home with a hose and rag can save you pennies on the dollar. 

6. Managing your Bills:  If you currently have credit card debt, home loans or auto loans that you are having trouble keeping up with, then a debt management company could help you understand the concepts of money management.  Using an outside source to help you evaluate your spending and savings habits will help you realize what you cannot see yourself.  Debt management companies can help you get on track and stay on track with cutting debt, setting up a budget, and saving to boost your credit score.

Setting a budget and sticking to it doesn’t have to be like the elusive pot of gold at the end of the rainbow, it can be a reality if you put some extra time put into planning.  Set yourself some attainable goals and when you reach them set the next set of goals higher.  The best way to financial freedom is taking control of your situation and turning it around for the better, so gather your bills and receipts and sit down for a long hard look at how you can change your financial future for the better.