Do you ever wonder why your co-worker has the cabin at the lake and you can barely make your mortgage payment? One word: budget. Do you ever wonder how you can afford that trip to Hawaii? One word: budget. I will show you how just going on a budget for 1 to 3 months can save you hundreds or thousands of dollars! I can make it painless and easy.
The biggest misconception is that you have to give up what you love. Not true! You can still eat out! You can still go to the movie that just hit the theater.
Not convinced? Read on!
Envision the goal
First of all, have a goal that you want to save up for. Do you want a Vegas trip with the boys? Done. Are you finally going on the wine-tasting trip with the girls? Done. Have you always dreamed of owning your own business? Done. Envision that goal over and over again. This time you are not just going to dream about it – you are going to get it.
Do what you normally do
Keep track of everything. Go to the grocery store for the week like you normally do. But this time save the receipt. Go out to the sports bar with your friends on Friday night but this time remember to keep the receipts. Remember the tips and how much it costs to park. Get take-out on the night that you have to work late. Just record it. Of course, don’t forget how much gas you needed for the week.
Separate into categories
Now, take all that you did above and separate it into one of six “categories.” 1). Food 2).Transportation 3). Clothing 4). Gifts 5). Entertainment, and 6). Other. This becomes your budget for the next week.
Sounds like you are not making any progress is it? Oh but you are!
Trim the fat
Now just trim a few things you don’t need. Not many – just one or two at first. Don’t go overboard because with all of that budgeting there will be a backlash!! Instead of going out to eat twice a week, go once a week. Instead of going to the sports bar and seeing that new movie, pick one or the other. Then do the other the following week. If you want to go to both, spend less money somewhere else, such as at the grocery store, to make up for it. Cook the meat that has been in the deepfreeze for two months.
You win!
Whether you saved $1 or $50 you win. Not only have you taken a glance of what you are spending, but you are finding ways to cut out things you don’t need. Already you are a winner. However, be sure you play again the next week and try to cut out more money. Cut the budget a couple more times. Now ease into a weekly budget that works for you.
Include the family
With your family’s support you are sure to win. For a little extra incentive, if there is any excess money at the end of the week, split it between all of the members of the family, go bowling with it, or award it to the family member that worked the hardest at achieving your budget goals.
Saving for Hawaii? Put all earnings into a money market account where it will earn you some high interest!
