Living on a Budget

Realizing you need a budget and how to create one

Most people realize at some point in their life that they need to reorganize. In most instances it begins with their money situation. At some point in your life whether you are young or old you will realize you are living above your means and must do something to fix it. Or maybe you just want to save up for a large ticket item or a special vacation. Whatever the purpose You Can rearrange your spending habits to create a budget to help you save money.

The first step is to decide that you really want to save money. Choose your reason, Retirement, Savings, HD TV, Vacation, etc and decide how much you are going to need and how long you want it to take. Let's say you want to buy a new HD TV and it costs $2,000. You would like to buy it in 3 months. so you can divide the cost of the TV by 3 months or by your pay period. For example if you get paid every 2 weeks then you would divide $2,000 by 6 which is the number of times you get paid. The amount you would need to hold out of each paycheck would be $300.

The second step is to take a week and write down everything you spend each day. At the end of that week take a look at all your purchases and see what you can cut out. This can be a real wake up call to some people. Most people do not realize how eating out or other spending habits they may practice each week can add up to major cash.

Ok so now decide what you would like to cut out. Try to cut as much as possible without depriving yourself. It will be a drastic change and you must be ready to be challanged. But once you have started saving the money the reward is well worth the stress.

When you start saving money place the extra cash in another bank account or savings account where you cannot touch it. that way you will not be tempted to touch the money you have saved.

Finally, reap the rewards when you have the nice chunk of change set away for what ever you decided. Be proud of yourself for making a goal and uptaining it.

How to save money when grocery shopping

A great way to save money is to prepare before you go grocery shopping. Food takes up a major part of anyone one person or families budget. With careful planning, a good bit of money can be saved. The first thing to do is decide if you want to shop once a month, once a week, etc. Then create a shopping list detailing how many meals you need to buy for. For instance, if you are shopping on a weekly basis then you will need a plan for seven meals, lunch and breakfast. so take your list and write down seven meals, etc. Only write down what you need. Also look at your local paper to check grocery ads for savings.

Also only buy what you need. If you stick to your list you will not spend as much money. Also avoid being hungry when you go. Being hungry will make it hard for you to stick to your list. you can also add up the cost of the items on your list and if the total is good then stick with it. if not substitute something else to produce a lower amount. Most of the time people buy the same things so you should have an idea on how much something cost.

You can also frequent coupon sites and print out coupons for your favorite products. This is another great way to save money.

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