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. Read the rest of this entry »