If You Go on a Budget, You Can Save a Lot of Money

Did you know if you were on a budget you might save so much money you could start a savings account or add to it a lot faster than you are now, pay down debt, and start to feel like you have more money than you have ever had? You might feel as though you are no longer living paycheck to paycheck. Many financial experts give online advice to that effect. In fact, a lot of people say it will feel like you are giving yourself a raise if you are on a budget. That is despite the fact that money people avoid the word "budget," because they feel they will be too restricted if they are on one.

If you have a budget, to begin to save money, you will need to calculate all of your monthly income and expenses, whether or not the amount of your income is always the same. Some of your expenses will state the same from month to month, while some will not. As you are preparing your budget and calculating how much money you need to allocate to each account, you may also find a lot of ways to save money.

The article, Ideas for funding an emergency account, on the website, www.crown.org, is actually about saving money while on a budget and using the money to start an emergency account. The ideas could be helpful, however, whether you are using the money saved for that reason, to save, pay down debt, for a vacation, or for some other reason.

The article suggests that you first keep track of every penny you spend every month--even for items such as snacks or soda pop you buy at work. It suggests you first determine how much you are spending for extras. For example, could you save money by making that expensive gourmet coffee at home, rather than making so many trips to the expensive coffee shop? How much could you save by taking your lunch to work, rather than eating out every day, or by taking a snack from home, rather than buying it out of the vending machine? Could you save money by doing things at home, rather than spending on expensive pedicures and manicures, haircuts, or colors? Will a cheaper kind of lipstick be just as good as that expensive designer kind?

How much could you save on clothing by buying underwear, socks, and t-shirts at a discount store? You might find you could save a lot of money by planning your weekly meals and only buying the things necessary for those meals. If you stock up on nonperishable items, do it only when they are on sale. You could save money by occasionally having a meal without meat, or drinking water, rather than soda pop or tea. How much money could you save by buying some or all of your groceries at a discount grocery store or dollar store?

Another idea to save is to get your news on television, radio, or from the Internet rather than subscribing to the daily newspaper. You might save by having fewer dinners out and entertaining more at home, or check out movies from the library.

You could find extra money by selling extra unwanted items on eBay, Craigslist, or at a garage sale.

When you see how much money you can save on your budget, you can just it accordingly, perhaps to pay down debt, save for an emergency fund, or save for a vacation.

There are a variety of ways one might find to save money, even if expenses currently exceed income, and many of them can be found online. According to the article, Healthy Food on a Budget, How to Save Money and Eat Healthy Meals, on the website, www.healthyguide.org, you can save money by reducing the amount of junk food you buy, including soda pop, cookies, and crackers, eating out less, and sticking with your prepared grocery list. Another way to save is by preparing large meals that can last all week, such as a pot of soup. A variety of online sources say it is possible to save money on entertainment by going to community festivals, which often have free or low cost entertainment, going to a movie only during matinee hours, having a scavenger hunt for your children, and going camping (which can provide hiking, fishing, biking trails, and swimming).

According to the article, How to Prepare a Budget, on www.ezinearticles.com, to create a budget, whether online, on software like Excel, or using a pencil and paper, one first needs to calculate his monthly income and expenses, whether the expenses are the same monthly or vary. The dates each expense is due should also be listed. Examples of expenses could include rent or mortgage payments, car payments, credit card payments, electric bill, gas bill, car insurance, health insurance, gas for your car, groceries, cable bill, car repairs, charitable giving, haircuts, and entertainment. If your income or expenses vary, estimate your income on the low end and your bills on the high end. If you find you have money left over, it can be used to pay off debt early or for savings.

You can buy forms to make your budget, make your own (tutorials are available online), or buy them in a store. Do an Internet search and find the one you like best, or buy one in a store or make own to suit your own circumstances.

In short, if you want to save money because your expenses exceed your income, to save money for purchases, a vacation, or to pay down debt, you may be surprised how much help a budget can be. Noted financial expert Dave Ramsey, who teaches people how to pay off debt, invest, and save money says in his financial seminars that many people who go on a budget the first time feel like they have gotten a big raise.

Citations: Ideas for Funding an Emergency Account, by Crown Financial Ministries, Crown.org
Healthy Food on a Budget, How to Save Money and Eat Healthy Meals, No author listed, Healthguide.org
How to Prepare a Budget, by Benjamin Robert Ehinger, Ezinearticles.om