Sticking to a Personal Budget
Fred Hopkins
You have taken the time to create a budget. It has been a overwhelming task, but you achieved it. Now, you must continue to use it in order to achieve your financial goals. Your financial plan may look wonderful on paper, but it will not help if you don't transform the spontaneous spending. Here are different ways that even the least financial savvy person can use.
1. Think before making a impulsive purchase. Having the master card,American Express, and Visa cards in your wallet or purse stops us from thinking clearly. We encounter a material item we desire and we act like a celebrity with an unlimited amount of money and "Charge it!" Then after the fact you have realized, that you have spent a portion of your monthly bill money. Now, once that is gone, there's no way to get it back until next month unless you make the right choice and return the impulsive purchase.
2. Put your credit cards away. Once they are paid off, hide them. If you carry them you will be tempted to use the cards for an unnecessary purchase again. It is okay to hold on to a few because nobody can predict when an emergency will occur.
3. Ignore that raise. Don't spend money that has not been accounted for, like a up and coming raise. Sometimes raises can be forgotten or delayed. Most people are guilty of planning on our future purchases before the ink dries on the check stub. Instead of spending that money, try building up your retirement account. That can be an wonderful bonus later on in life. Let it grow!
4. Try Saving your tax refund. Every year I used to rely on the tax refund to dig myself out of debt once again. Unfortunately I got myself back into debt and needed help getting out of the negative again. A person should treat tax money like a raise or a bonus - keep it hidden.
5. Withdraw money from the ATM once a week. If you believe that you may need cash in your pocket, go to your bank just one time and budget the right amount of money that will last you for important things not for new pair of shoes or golf clubs. Why? When it is spent, there is no going back for more. Resist the urge for withdrawing more money that is not budgeted for spending.
6. Learn how to grocery shop. This appears to be a simple task, but there is a realistic way to obtaining enough food to last on a budget, especially with children. You can save extra dollars by clipping coupons from the Sunday paper. Stock up on essentials such as toilet paper, laundry detergent, soap, and other household items when there is a sale. Buy common food staples in bulk. Buy meat from the butcher and have it cut up for free.
7. Get new quotes on insurance rates and utility billing. Every 3 years or so it my be beneficial to see which comapany can offer you lower rates - your current insurance agent or another.
Sticking to a personal budget may take time and patience and we all lapse into old habits sometimes. The main thought is to get right back in and don't make the same mistake repeatedly. You will reach your financial goals.
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