Ignite FB Tracking PixelTips For Effective Household Budgeting - Connie Dunlap
Tips For Effective Household Budgeting

by Connie Dunlap 05/16/2018

If your household budget seems a little tight, lately, there may be several ways to ease it.

It's amazing how many people do not keep track of where their money goes, which is often the reason it disappears so quickly!

Another piece of the puzzle is the fact that we're all creatures of habit. With few exceptions, most of us go through the motions of our lives on auto-pilot. In some ways, that works to our advantage, but in other ways, it can hinder our progress.

Saving Money Begins With Awareness

One approach to reducing stress and improving the quality of life is to save money and curb expenses, whenever possible. That doesn't necessarily mean you have to deprive yourself or your family of anything you need or want. What it does mean is eliminating spending that is wasteful, unnecessary, or redundant.

The first step involves sitting down and creating a household budget on your computer. There's no need to purchase and learn any fancy software. Many people are comfortable with creating budgets and other documents on Excel spreadsheets or Quicken, while others prefer setting up simple tables on a word processing program like MS Word. The interesting thing about creating a document with your monthly expenses and income on it is that it provides a visual depiction of your cash flow. In other words, it shows where, when, and how your money is coming and going!

Analyze and Take Action

After you've identified areas in which you can cut back without causing any hardship, the next step is to actually implement those changes. If you weren't able to identify any sources of wasteful, unnecessary, or excessive spending from creating a budget, then take a look at your monthly invoices for items like credit cards, cable TV, cell phones, and other services.

By examining the services you're paying for, you may realize you're paying for more than you need or even use. Sometimes by switching your service plan to a more basic option, you can save hundreds of dollars a year. In the case of credit cards, if you've been paying your bills on time and not making a habit of maxing out your account, you may be able to request and receive a lower interest rate. This is yet another way to reduce your expenses and keep more of what your earn. Comparing insurance plans and switching to a more economical plan or provider is another strategy for reducing costs and easing budgetary strains.

There are also free worksheets, budget calculators, and other resources online that can help you take charge of your spending and saving habits. Setting financial goals, establishing priorities, controlling impulse buying, saving a portion of your income (especially bonuses, tax refunds, and raises) and keeping track of your spending on a daily basis are also key parts of an effective money management plan. As a side note: If you need to consult with a reliable credit counselor for help, the U.S. Federal Trade Commission provides helpful information.

About the Author

Author
Connie Dunlap
Personal I am originally from Ohio but please don't hold that against me. :) I moved here with my husband in 1978 and we raised three sons who all graduated from Grosse Pointe South High School with an excellent education. I received a Dental Hygiene certification from Ohio State University and a B.A. degree in psychology from Wayne State University. My current hobbies include spending time with my family, needlework, learning French, and volunteering with the Junior League of Detroit, Operation Smile, and Grosse Pointe Memorial Church. Professional I have been a licensed Realtor since 1987 and an Associate Broker since 1990. I specialize in representing my clients in the purchase and sale of single-family residences and condominiums in the Grosse Pointe communities. I truly love this area and pride myself on my knowledge of current transactions, school districts, neighborhood information, and related services, including mortgage, insurance and inspection information. I am a customer driven Realtor dedicated to achieving results and providing exceptional service. If you are in the market to buy or sell a home, I will put my 31 years of real estate expertise to work for you! Certifications and Recognitions [email protected] certification [email protected] Graduate, [email protected] Institute ABR - Accredited Buyer Representative CRS- Certified Residential Specialist RAM- Real Estate Alumni of Michigan e-PRO- Advanced Training in Technology