Tips and Warnings  

How to Budget and Save Money    

By: wikiHow 

 

Tips

• Always over-estimate your expenses and under-estimate your income.
• Make purchases with paper money, not exact change, and always save the change. Use a piggy bank or jar for your coins. Coins and change may look insignificant but when accumulated over time they can help you save. Some banks now offer free coin counting machines. When you redeem your coins, ask to be paid by check so you won't be tempted to spend your new found cash.
• Take care of your possessions. In this way, you'll need to replace items less. Also, don't replace items until it's absolutely necessary. For instance, just because a motor in an electric toothbrush breaks doesn't mean it stops functioning as a toothbrush. Continue to use it, and when ready go buy a new one or check the warranty.
• Every time you go to buy something think of the thing you are saving for and the rough percentage of your savings so far that the thing costs and quite often you won't buy it.
• If you get paid about the same amount on a regular basis, it'll get easier to budget your money over time. If you have a variable income, it'll be harder to anticipate your expenses because you won't know the next time you'll get paid. List your budget categories in order of importance and fulfill the most important items first. Play it safe; assume it'll be a while before you get money again.
• Use affirmations. For example, repeat this affirmation to yourself until it sinks in: Debt is not an option.
• If you receive unexpected cash, put all or most of it into your savings, but continue to set aside your regularly scheduled amount as well. You’ll reach your savings goals sooner.
• Even if you REALLY want something, ask yourself, do you REALLY need this? More than half of the time it will be a big no.
• Most people can save something regardless of their income. Starting to save a little will help build the habit of saving. Even saving as little as $5 a month will teach you that you don't need as much money as you think.
• If you can't bring yourself to destroy all your credit cards, at least freeze them. Put them in a container, fill it with water, and stick it in a freezer. That way, if you feel the urge to use credit, you have to wait until the ice melts, and during that time you may come to your senses and realize you don't really need to buy what you wanted to buy.

  

Warnings

•  If you do mess up don't beat yourself up about it. Just try to do better the next time you get paid.
• After a long week of working, you may want to indulge in some luxury, telling yourself, "I deserve this". Remember that the things you buy are not gifts to yourself; they are trades, products for money. Say, "Of course I deserve this, but can I afford it? If I can't afford it, I'm still a worthy person, and I still deserve to meet my savings goals!"
• Unless you're in truly desperate financial straits (like 10 seconds from eviction and your three children are starving) don't try to cut corners connected to health. Basic preventative care for yourself, your family, and your pets might cost you a $60 office visit or a $30 heart-worm pill today, but the skipping it will contribute to expensive problems and heartache down the road.
• Do not go out "window shopping" with any money on you. You will only be tempted to spend money you cannot afford to lose. Only shop with a predetermined shopping list.
• If you have spendthrifts in your circle of friends, you may need to formulate a list of ready excuses to explain why you can’t go out with them all the time.