People all over today are rethinking and taking a second look at their budgets and are trying to figure out how to make the dollars stretch just a little further. With today’s world of mass shortages in products and the jobless rate extremely low, this seems harder and harder for many people to keep a budget in control with some of the highest inflation most have ever seen. They start picking and choosing which bills they will pay from one month to the next, which is a bad habit. Well, I am sure that you have practiced the aspect of “making over your wardrobe,” but how about the idea of “making over your budget?” I know, it sounds strange. However, it will help you meet your bills every month. There are several different steps you will need to do when you are making over your budget. And there are several different budget methods you can choose from to get the one that works for you. And that is key to this entire exercise, finding a budget method that fits your needs and style.
I know it probably doesn’t sound fun doing a makeover on your budget, but if you come up with a great plan that produces great rewards in the end, it will make it all worthwhile. It’s a great way to find out where your money is going and how you can cut costs down here and there.
Once you know the total amount of money you will have to work with, you will know where you can make adjustments as needed. You can consider your budget a spending plan instead of a budget or a money guide. Because that is basically what you are doing when you are creating a plan on how you will spend your money, let’s take a closer look at these steps that will allow you to make over your budget.
- Box/File:
Try and keep your bills in either a box or a file. This is a great way to keep your bills organized in your office without having your bills lying around and eventually getting lost. With many bills being delivered by email, create a folder on your computer or with your cloud service and save copies of the PDF bills and your bank statements.
- Track Your Money:
A great way to do this is to track all you’re spending for four weeks. This should be done every time you shop, regardless of your payment method. You will probably be surprised when you discover how much money you spend on unneeded items such as fast food, coffee shops, and clothing, among others. Yes, impulse shopping will become evident, and you may be surprised at what you spend on items you most likely do not need. Now you need to find a way that you can either reduce these costs or, even better yet, cut them out completely.
- Fixed expenses and Flexible Expenses
You need to begin this step by putting into the budget all those fixed bills that cannot be changed. These include your utility bills, mortgage, insurance, and car payments, and I’m sure you get the idea. It’s everything that you need to pay every month. After you have done that, you can begin to figure out the more flexible expenses such as:
- food
- hobbies
- entertainment
- clothing
- eating out
- and others
- A Sure Money Saver for Your Budget
I know it is convenient to stop at the nearest restaurant and grab a quick burger, but the cost of a quick burger adds up quickly. Try taking a sack lunch to work. Why not save some money and make a great meal right in the comfort of your own home? Even better is it’s healthier and less expensive in the long run.
There are several other things that you can do to give your budget a makeover, but you will have to figure out how these will fit into your expenses and lifestyle. With today’s economy, record inflation, and supply chain issues on many goods we require, you need to consider a budget makeover. For more on the budgeting process see an earlier post, HERE.
If you are looking for a physical budget system, you can see what I offer for these budget systems; please click PHYSICAL, and for an electronic group of financial spreadsheets, please click SPREADSHEETS. If you prefer a simple and plain spreadsheet, feel free to sign up for my newsletter and get a free spreadsheet by going to https://page.co/l1jo.
If you need assistance with creating a budget or making meaningful changes to an existing one, reach out to me directly if you are in the middle Tennessee area, specifically the Metro-Nashville area. If you are outside Tennessee or would prefer to work with someone closer, seek a qualified fee-only Registered Financial Consultant (RFC) near you.
