Budgeting Tips for the Frugal Lifestyle

During this recent lengthy recession which started in December of 2007, the ability to live a frugal lifestyle within your own budget is a matter of economic survival. The days of living the champagne lifestyle on a beer budget is over.

On of the first steps you the reader should take are to pay yourself first. Here are 4 tips that every reader can apply for themselves.

Tip 1) When you arrive home for the day take all your loose change and deposit that change into a 5 gallon empty water bottle. At the end of the month take that change that you accumulated and deposit that change into a money market account. This could be your vacation spending money, your buying some special money, or better yet transfer that money into purchase mutual funds using dollar cost averaging.

Tip2) If your bank has a program similar to the Bank of America program where they will round your change up to the nearest dollar, and then transfer that amount into your savings account. That program is called "Keep the change"

Tip 3) If you are still employed take advantage of your companies 401(k) and 403(b) retirement savings program. Some employers will match your employee contribution. You should for an example contribute at least 5%, if your company will match up to 5% of your pay contributions. You will receive a tax deduction for each dollar that you contribute to your retirement account.

Tip 4) If you are still employed, and are having taxes withheld on your W4 tax withholding form, adjust your tax withholdings. For example if you receive a large tax refund from Uncle Sam each year, you are not receiving interest payments on the amount of the refund that the IRS is holding. If you lower your tax withholding and deposit that amount into your money market savings account you will at least earn interest.

To quote Benjamin Franklin, "The way to wealth is plain to see as the way to market. It depends chiefly on two words, industry and frugality. That is neither to waste time or money, but to make the best of both. Without industry and frugality nothing will do, and with them everything"

If, Benjamin Franklin were alive today he would advise our readers to spend your time educating yourselves about money and managing money. There is plenty of online free educational material to read, as well as books at your local library. That education will be time well spent and industrious, you will discover that living within your customized budget will lead towards a frugal lifestyle.

The top three reasons that people today are in debt beyond their means are the following;

1) Lack of education and understanding of money management and budgeting process

2) Poor record keeping of their financial documents

3) Avoiding reality by ignoring the warning signs of pending financial doom

Let us examine what makes up the budget and its process. There are two parts to a budget fixed debt items and discretionary debt items. First let's review the fixed debt items to budget for; Mortgage payments/ rental payments, Your property tax bill, your utilities, internet cable bills, phone bills cell phone and land line, gas bills, oil heat cost, property insurance bills, auto insurance water bills and trash bills.

For discretionary spending include the following list; Credit card bills, Home equity line payments, child care cost, clothing, charity, dining out, entertainment, groceries, gifts, yard maintenance, household maintenance, pets, medical expenses, personal care and expenses.

You can look to save money in both fixed debt cost as well as discretionary debt cost. For the fixed debt cost considers the following; refinance your current mortgage to lower your mortgage payment and mortgage rate. If you are renting consider taking in a roommate or to move to another apartment that has a lower rental payment.

For your utilities consider having a formal energy audit conducted by your utility company. Request that the company replaces your current old light bulbs, with more energy efficient bulbs. As a homeowner update your exterior doors, windows, furnace, ac units, with more energy efficient products.

Price shop your insurance bills both on line and locally. Raise your deductible amounts to lower your premium cost.If you must dine out use coupons and order specials. Order the entertainment book of coupons at

http://www.Entertainment.com. Additional savings ideas order one meal for two people and wash the meal down with water. Skip your desert and coffee after diner.

f you have your own land, grow your own vegetable garden. Purchase your fruits and vegetable in season and locally. Purchase hens so that you can have nice fresh eggs. Of course you might want to clear that idea with the boss of the house first. To avoid the high cost of divorce.

Living a frugal lifestyle is a choice that can be made by all readers. Discipline and education are your key's to your success and financial freedom.