Learn to Budget

[dollardaze]

Making some careful decisions and some small changes can help us to have that extra cash we need for those unexpected expenses and also some cash to sock away some savings.

The first thing we need to do is to know where our money is going every month, and where it needs to be going. Write down every penny that is spent for one week, you'd be surprised at how much you spend on those little "impulse" buys that you could do without (and maybe should do without) each week.

When you are making a budget, include all those expenses that you know you will have to pay later on in the year - ie: property taxes, homeowners insurance, even vehicle license plates, etc. Then divide those amounts by 12 and put that amount aside each month so that the cash will be there when it's time to pay those bills.

Receive a tax refund, a bonus or raise at work or an inheritance? Don't use it (at least not all of it) to splurge on something that you wouldn't normally buy, but put that extra money into your savings or use that big windfall to replace a large appliance that's about to give out on you. This can help to save you the interest charges that you will have if you charge the item to your credit card.

I believe that the best budget advice is to keep track of every penny that you spend. You'd be surprised at what you decide not to buy if you have to write it down!! These amounts really do add up over a months time and you will have some extra money to add to your savings or to pay for those unexpected expenses that crop up.