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Wednesday, July 8, 2009

Tips for Staying on Budget

Hello friends,

Its high time people started knowing how to stay in their budget.We need to learn to plan and maintain our budget.For those, who need a simple answer as to how to maintain,I hereby give some tips.

* Focus on Savings
You know how much money­ you have.Determine the amount of your budget that you can afford to save each month. Have it direct-deposited to your savings account, or to your mutual fund. Wherever you decide to keep your savings, make sure you put money into it every month. That savings will make a big difference for you later.­

* Use Cash and not Card
Take out enough cash to last one week at a time. Make up your mind that the cash you have is all you get for your expenses each week. It's much easier to turn down a $60 pair of shoes by this method, than it is when you just have to swipe a credit card.

* Reduce Bad Habits and Cut Them Off Soon
Try to reduce smoking and drinking, and put the beer/cigarette money toward your other expenses. It's difficult! I agree,but I assure you, that You'll see your bills come down and not to mention, your health will improve too!. As you'll save on health care expenses down the road, you may become eligible for lower insurance premiums which of course is a boon.

* Share the Responsibility With Your Family
Make sure you're not the only member of your household concerned about your budget. If you're working hard to save money, but your spouse is out spending you into debt, you're fighting a losing battle. Sit down together and make a plan to determine how much ­spending money you should each have. Then, check in every week to see how well you're doing.If the entire family shares the responsibility for the budget, everyone can cut back just a little and make a big difference.

* Keep Your Receipts To Check Yourself
You probably monitored your expenses for several weeks to make a budget. Once the budget is made, though, it can be tempting to stop keeping up with every little expense. But keeping track really can help you stick to your budget. Save yo­ur receipts, and write down the places you spend money. You'll be less likely to overspend if you realize how much money has actually gone through your hands.

* Analyze Your Spending In Your Budget
Look through your budget and all your receipts. Can you find an expense that can be cut? Maybe you could bring your lunch to work twice a week, or set up a carpool with a friend. Just c­utting out restaurant and gas costs can help increase the amount of money you have available for savings and purchases.

* Deposit Your Savings At A Bank
­If you find that you keep reaching into your savings, set up a CD(Certificates Of Deposit) or other acc­ount with early withdrawal penalties. Banks and other institutions pay more interest if you'll agree to let them use your money for a longer amount of time. Putting your savings into a yearly CD will yield more than a three-month note would.Friends from India, I would prefer you to put FDin banks /Schemes in Post Office like NSS,etc.

* Be A Little Lenient With Yourself At Times
Remember that life is unpredictable, and things happen that are out of our control. When­ you make a budget, try to allow some extra money for variable expenses. And, be gentle with yourself if you go over your budget sometimes. It can be hard to get back on track ­if you let yourself get too frustrated over a mistake or two.

Dear friends,Follow­ing these tips can help you stick to your budget. You can prepare for a major purchase without having to borrow more than is absolutely necessary, and you can feel good about keeping your finances under control.

Hope my tips were useful.I would gladly accept your comments/recommendations.


Anonymous said...

Thanks for sharing such great post, according to me budgeting doesn't mean that you have to compromise your needs but it is important for planning financial life. Household Budgeting means to create a planning for the money spending. Build emergency fund, minimize the use of credit card, planning, etc. are the tips for making personal household budgeting. For more details on Household Budgeting refer Household Budgeting

Chandrasekar said...

Dear urvi,

Planning financial life may lead to compromising.

Please post your views and let the knowledge be shared!