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Seven Tips to Help With Household Budgeting |
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Articles, How-To's and Interviews -
Personal Finances
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Written by S. L. Simmons
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Do you frequently get cash from ATMs and then have no idea where it ends up? Do you end up paying late fees simply because you don't have a good system in place for tracking and paying your bills? If you don't have a good budget system in place, it is easy to lose track of your hard earned money. The tips below can help you to keep your finances under control.
1. Keep your financial records organized and your filing up to date. Have a set of file folders for items such as receipts, bills, canceled checks, checking account statements, etc. Have a designated place where you keep or can easily assemble your master budget, your financial files, checkbook, etc. so it is all in one convenient location.
2. Avoid spending cash, unless you are good at writing down cash expenses in a journal. It is all too easy to get $100 from the ATM and then have no idea where it all went at the end of the week. If you have trouble figuring out where your cash gets spent, keep a small amount of cash on hand for minor purchases. For everything else, try to pay by either a paper check, online checking or through credit cards so you have a record of your purchases. Credit cards are a good way to track purchases unless you have trouble controlling your spending. If this applies to you, then avoid credit card purchases and focus on keeping track of your expenses in a journal or by paying for items by check.
3. Give your children a set allowance for things like movies, CDs,
snacks and toys instead of just giving them money on as needed basis.
Giving children an allowance teaches them to make wise spending choices
at an early age. A twelve year old who spends all of his allowance
right away on CDs and then doesn't have enough money to go to the
movies with his friends on the weekend has just learned a good lesson
on the negative consequences of impulse spending.
4. Have a system in place for handling the mail. If you are not in the
habit of misplacing bills or checks, good for you. Keep on using
whatever system you have in place now. However, if losing track of
bills is an issue at your house, it may help to have a designated mail
drop box inside the house. Each family member should be instructed that
whoever brings in the mail that day should always put the mail in the
designated mail box for later sorting. Then the family member who has
responsibility for sorting the mail should do so near the financial
folders. That way checks get put right away in the check folder, bills
in the bill folder, etc.
5. Avoid going to stores where you have had problems overspending in
the past. Our neighbors stopped shopping at warehouse clubs and
actually ended up saving money. They found they spent more money by not
being able to resist all of the warehouse club bargains on products
they really didn't need than they would by just getting their food at
the local grocery store.
6. Have written, long term savings goals. Some sample goals might be
getting out of debt, saving for a college, or building a retirement
fund. It helps to avoid spending money on day to day purchases if you
have financial goals in mind. Not having any compelling reasons to save
makes it easier to fritter away money on small day to day purchases
instead of saving for the long term.
7. Have a set time each week to review and pay the bills. If you have
the money to pay your bills, there is no point in getting unneeded late
fees due to disorganization or lost bills. If you make $15 an hour
after taxes, then to make up for just one $30 late fee you would have
to work an extra two hours to cover the fee.
Copyright 2006 Always Frugal.
S. L. Simmons is a thrifty mom of two and the editor at Always Frugal.
Visit her site at http://www.alwaysfrugal.com/budgeting.html
for more tips on household budgeting and frugal living.
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