by
Carl Hampton
12/21/2009
Good Job, you have
taken the first step towards better
finances; you sat down with your spouse and
analyzed the amount of money it really takes
to run your home comfortably. You understand
your bills, you know how much you have to
spend on food costs and clothing, and you
are all set. You have a plan. Now what? How
do you implement these new changes, how do
you get your wife to put away the credit
cards when that 12th set of
dishes goes on “sale” at Niemen’s?
Well there are a few ideas out there to help
you stick to the plan; one of the best, in
my opinion, is to use cash. Every paycheck,
after the bills have been paid give yourself
an allowance, it is a lot harder to want to
spend your last fistful of cash on something
frivolous than it is when you are simply
sliding the plastic. Then at the end of the
week put the cash away, before you know it
you will have quite a stash saved up—perfect
for gift giving or vacations, because you
won’t be taking funds out of your budget.
Another way to build up
your savings is to pay yourself every check.
The premise behind this is to pay money into
your savings account, like another bill,
each month after you pay your other
necessary expenses, that way you aren’t
hoping that your cutting back is working,
you have an account that you can watch
progressively grow. So after you pay the
electricity and the rent, put 10% (+) of
what’s left directly into your savings
account.
One big money saving
tip, that I am not ashamed to advocate, is
to cut bad habits out of your budget. If you
are a heavy smoker not only is it an
expensive habit, you are raising your
healthcare insurance costs too. Scale it
down, you will save your wallet as well as
your ability to taste solid foods. Also if
you tend to throw back a few beer every week
with the guys at the local Hooters, consider
having one beer then switching to cola, or
even better for you-water, it is
considerably cheaper than alcohol and you
still get to enjoy the game with your
friends (and you don’t have to pay cab fare
home if you drink a few too many).
Another tip that can
help you on your way to financial stability
is paying down your debt, and no, I am not
just talking about the minimum payment, pay
down your balance. The higher your balance,
the more interest you are paying and the
longer you will be in debt. Face it, when
the goal is to come out on top, don’t get
into a situation where the hole keeps
getting deeper, it will only discourage you
and make your plans seem even farther from
your grasp.
Finally, make sure that
you aren’t the only one committed to making
a change. Talk to your spouse, make it known
that you are serious about strengthening
your financial plans, and make sure you are
on the same page and dedicated to getting
out of debt and bulking up your savings for
a more beneficial future.
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