Friday, August 6, 2010

Money, money, money (part 1 )

Finally the stress of trying to run a small business, a family and raise three young children is starting to show and I don’t mean the bags under the eyes, the laundry piling up or I don’t remember the last time I was out in the garden. No I mean there is a whole in my pocket and my family budget has flown out the window.


Money is not the source of great evil, only the misuse of it is, money is not the answer to happiness the knowledge to use it wisely is.

Many of the vintage magazines I read will almost always have an article on how to save money or manage it. It seems once upon a time every mother in the land knew the magic art of budgeting and was willing to share. The fact most countries have suffered with some finical issues of late only show something has gone wrong. At the grass roots it’s often ourselves to blame but we don’t want to admit it, while I understand in some cases this is not so I am referring to the smaller issues in life. Like your home budget or lack of one, the credit card we all seem to need and the wasteful shopping that we think will make us feel better.

So with a dislike for debit and some helpful tips from my vintage magazines I am going to try some new ideas

Step 1 – Leave the credit card at home. I may need it as a buck up for emergencies so no cutting it up.

Step 2 – Find out all the direct debits coming from my accounts. I was truly surprised were some of them were coming from. I had my weekly electricity debit coming from my saving account. I also decided I didn’t need all of them and got rid of some or found cheaper options.

Step 3 – Write a budget. This really can be very simple; it just takes a few steps.

3a – Work out were your money is coming from and how often. This needs to be after tax and the like.

3b – Work out what you NEED to spend money on. Food, gas and electricity are what you’re looking at here.

3c – Work out what you WANT to spend money on. This is things like going out to dinner or the movies, even the new top you think you need but have ten others you just can’t be bothered with.

3d – Now put it all together, there are lots of free templates and software you can use but I like good old paper and pen. There is something finial about writing it down.

If you’re finding you’re over spending then take some of the wants away. Also look at how you spend e.g. is there a cheaper option or product, do you need to make that short trip or could it wait till you have more to do.

Step4 – Use cash only. This idea is not for everyone but I like it so I’m going to try it. The idea being when you run out of cash you have spent your budget. If you have leftovers you can save them.

2 comments:

  1. Thank you for sharing these good ideas.

    ReplyDelete
  2. Your most welcome Blackberry. Thank you for coming by.

    ReplyDelete