Money Management Tips Anyone Can Use

While I can't speak for everyone here at AC, I know that I am here to earn a few pennies to help stretch the budget. Staying at home with my son means no steady income, and paying the bills off the meager salary my husband brings in.

Sometimes, it's not very easy to make sure that all the bills are paid, that I have gas in the car, groceries in my cabinet, and still have money left over for the other essentials I seem to always forget to factor in. It's always and nearly impossible to ensure that I have surplus money for entertainment.

So, I know that with the bind I'm in that I can't be the only one and I want to offer my advice on the budgeting issue.

First, come up with a master budget. Factor in all the money you have coming in, and estimate low in case of a paycheck shortage. Study, study, and study this master budget so that you can be sure to have included all the bills and necessities to avoid falling victim to coming up short, or spending the extra money you thought you had, only to realize later that you owe something else.

I always budget a certain amount of money for groceries. Then, I try to always come in under budget so that when I do, I have extra money to save toward something else, or for a rainy day fund. I over budget for gasoline, and limit my travel to conserve gas. Sometimes the over budgeting has left me with money in my pocket, and others has saved me panic when the gas prices shot up. That's a hard one to budget and can throw a crimp in at anytime, so that's another reason to always over budget.

Keep track of your spending down to every last receipt. Then you can analyze your patterns and adjust your budget accordingly. Eliminate the unnecessary spending to compensate for more necessities. And don't neglect to factor in entertainment, even if it's a $5 movie rental a week, or a month. You have to do something to keep yourself happy. Don't go overboard with it though. It's not necessary to go out and see a movie in the theatre for $8 a head, but if you're willing to wait a few months, you can rent it for $5 or less, and the all the interested family members can watch it with a bag of popcorn and soda for much cheaper. Reserve trips to the theatre for rewards or special occasions, work the expense into the budget when it comes along, and you'll do much better.

I'm aiming with the New Year to keep every receipt for everything I buy so that I can add it up and compare it to the total income for the year. This way I can see how much I'm spending for what percentage wise. I know I spend $6,000 a year just for the house I live in, but how much more of my income am I spending to keep it running? How much am I spending on unnecessary junk that I can put toward a much needed, and never taken, family vacation for next year? It helps to put it in perspective that way.

The most important advice I can offer: Underestimate income, and overestimate expenses. This may mean that on paper you're breaking even, or (hopefully not) in the negative, but in actuality you could be left with lots of money in your pocket. And, always factor in savings for unexpected expenses. My budget as it stands certainly make ends meet, but if you don't catch me at the beginning of the month when the new budget starts, or even further ahead for larger expenses, I'm upside down with no way out. If my tire goes flat, I've got to re-work the whole thing and sacrifice somewhere else, and that's no way to live. If you have a vacation fund on your budget, be prepared to have to use it for those sudden things, too.