Saving money comes completely naturally to come people, and to some people saving a penny burns a hole in their pocket. My husband and I tend to be in that latter category, which is why our frugal journey and this site were created. Life threw us a few curve balls earlier in life than we expected, so we’re starting over from scratch, trying to make our lives better the 2nd time around, financially speaking. I want to say this: No matter your financial situation, find the positive in your life and focus on it. You can’t die because you aren’t able to pay your credit card bills. You won’t die because you’re in bad financial shape. Your life is probably full of more blessings than you realize, but once you look at those blessings then starting over won’t seem so bad. I hope you have a loving person to start over with you like I have had by my side. I hope you join us on this journey to financial independence and comfort, no matter how long it takes.
Create a Budget
The first step to saving money is the dreaded “B” word. No, not that one, although it comes to mind when you think about Budgets doesn’t it? They can be one but they are a necessary part of saving money and they can become quite fun to create when you start! It’s easy too.
Step 1: Gather your most recent 3 bank statements, credit card bills, and all other monthly bills you have: electricity, water, gas, anything. You have to be able to know how much is going out of your home to make you budget.
Step 2: Record every source of income, but mark it as steady or variable because I don’t tend to use my variable sources of income when I make my budget. What I include in variable income is survey money, blog earnings, gifts, and any other money that you may earn one month but not have the next or the amount changes. For instance, I don’t always do surveys so even if I earn $50 this month I may not next month. I’ll show you later what to do with that.
Step 3: Go through your financial papers, and make a list of your monthly expenses. Include them all at this point and we’ll separate them later. You should have everything from rent down to a pedicure for the dog written down. As if you’d do that to your dog!
Step 4: Break your expenses up into 2 categories: Fixed and variable. Your fixed expenses are those you cannot change: Rent or mortgage, car payment, insurance, garbage pick up, utilities. The ones that you pay each month that you have to have for your survival go in this category. OK so you may not NEED your garbage pick up but do you really want ot deal with that? Eww!
Your variable expenses are, well, everything else. Some people suggest putting your cable/internet/phone and cell phone into the fixed category but I disagree because it isn’t necessary and it can be changed. Do you really watch every channel offered by your cable company? How many movies do you truly watch, and could you find another “free” source with which to watch those movies and shows? Chances are you can go to almost bare-bones cable and not miss a thing. There are free places online to watch TV and movies that are completely legal as welll. I did this and saved $20 a month on cable. Try it. Ask for retention.
Do you really need a cell and a home phone? MOst people just have their cell now, and love it. My parents finally cut out their home phone and just use their cell. Saving $150 a month was well worth it. See what features you can cut, too. Must you text or let your child text? If saving is a necessity at this point in your life, you have to be willing to let go of the things that are adding major expense to your daily living. I used to work for a cell phone company so I know texting can be pricey, and even with a $10 package/month it’s $120 per year jut to message people. They have the phone, let them talk. It’s cruel but it isn’t punishment. The end reward will be amazing.
Our site, I hope, helps you with the majority of your variable expenses like groceries and daily living. I try to highlight hot sales and deals when I see them so you can stock up later if the money is there. Cut the fat from everything you can if you truly need to save money. It won’t be forever, and give yourself some slack. Leave your family one small guilty pleasure and don’t make them do without…let them keep, say, high speed internet. We did, and I refuse to give it up!
Step 4: Total your income and expenses after you’ve created a livable variable expense budget. If your end result leaves you with more income than expenses, you’re OK. Otherwise you still have some work to do. You may need to pick up side work, cut back drastically and remove a service like cable or cell phones,
Creating and sticking to a budget are the 1st steps to saving money. Continue to read the blog and I’ll help you save money every other place in your lif so that your daily and monthly necessities won’t drain you so you can’t enjoy the rest of your life. When our new blog, Couponing for Christmas, is going you’ll be saving tons at the grocery store and drugs store, and you’ll free up even more cash for your savings accounts!
