You’ve Made Your Budget! Now What?

So you have spent the time to make your budget, and you found out that it really wasn’t rocket science. Or, you took the shortcut and downloaded and modified the one on my website, www.itsstillyourmoney.com. Now what do you do? The next challenge is to stay within your budget as much as possible. You know how much you have for disposable income, and you need to not overspend. That is what may have gotten you into some debt in the first place. Here are a few things that might help.

Look at the number of credit cards you possess. How many do you really need? If you are going to use them at all, only spend what you know you have the money to pay off at the end of the month when the bill comes. Otherwise, hide them. Better yet, if you are a person who can’t control your credit card habit, call the companies and cancel them. Then cut them up or shred them. Stores don’t like to take shredded cards. If you are going to hide them, make it really difficult to get to them. The more inconvenient it is, the less likely you will be to dig them out.

Give yourself a spending waiting period. Most of us look through the Sunday paper, making mental or actual lists of the things we “just have to have” from the ads. Go ahead and do that. and then go to the stores and actually look at the things you think you have to have. Pick them up. Hold them. Then put them down and go home. Force yourself to wait a minimum of 24 hours before returning to the store. During that time, give yourself a spending limit. go through the paper again.

Look at each item very carefully. ask yourself, “Do I NEED this or just want it?” If you still honestly need it, figure out how you can buy it without over spending your budget. Try to do it without the credit card. Make ATM withdrawals only once a week. this will force you to plan for the week ahead. How much cash will you need, and for what? Don’t pad it too much if you can help it. Try to be pretty exact. Lack of cash can help to cut down on impulse buying.

Don’t count on the raise or tax return. Work with only the money you have right now. when you really get the raise or tax return, then you can decide how to allocate it. You know, have an emergency fund is always a good idea. That can help you not use the credit card for emergencies. Learn how to shop for groceries. This can be very difficult, especially if you have children. Cut coupons. Buy store brands when they are cheaper. Don’t buy 5 of something because they are 5 for $10 if you will just end up throwing 4 of them away. If it will benefit you, visit a food warehouse and do some price comparing. In fact, do that with the grocery stores in your area. buying from the most exclusive doesn’t always mean the best products.

Renegotiate insurance rates and utility plans. Every couple of years, take a look at your home and auto insurance. Do some comparison shopping. Can you get a better rate someplace else without compromising on coverage? Are you getting the best cell phone plan for your useage? Maybe the plan you bought 2 years ago isn’t working now that you have a teenager sharing your minutes. Last but not least, find your coke factor. If you don’t know what that is, then you might have to buy my book. that is one of the first chapters. You can do that at www.itsstillyourmoney.com

So there you have it. I am sure you can think of other ways as well. Try to have You’ve Made Your Budget. Now What fun with this. Turn a challenge into a game, and get the whole family involved.