Tag Archives: Budgeting

How to Actually Save Money Every Month

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It’s easy to stop pulling out your wallet every so often, but in actuality it’s our recurring expenses that typically get us into debt. Many people often ignore monthly expenses because they are subconsciously used to just paying the usual bills each month. However, there are a few areas that when you eliminate them or find ways to cut them down – you can actually save yourself some money on a monthly basis.

Take note of the following bills – can you cut any of these out completely or down?

  • Cell Phone. First look to see if there are any items you can cut from your monthly plan that will save you money on your bill. If not, consider switching carriers – there are often plenty of deals out there. Something else to look into is a prepaid cell phone plan. This may not work for everyone, but many have had success with saving a lot of money on their monthly cell phone bill this way and only using their mobile phone when they truly need it.
  • Home Phone. Is this something you actually use, or can you get away with just using your cell phone as your monthly bill? If you are still paying your cable company for a land line and you don’t use it – find out if eliminating this can add some savings back into your bank account each month.
  • TV. More than likely you probably pay way too much for your favorite shows through your cable provider. Have you sat down and looked at what you can still watch through avenues such as Hulu or Netflix for a fraction of the cost?
  • Gym Membership. Do you actually go to the gym and use your membership? If you do go daily, this would probably be one bill worth keeping. However – if you rarely go and continuously pay money each month, this may be one membership to consider cancelling and instead jog outdoors when the weather is nice or run at your local park instead.
  • Other Subscriptions. Included in this category would be newspaper or magazine subscriptions, warehouse shopping clubs, meal prep services, and so forth. How many subscriptions do you really need? Be honest with yourself. Are you paying a lot more for groceries by using a meal prep service? Really take a good look (and a calculator) at how much you are spending per month in this category and cut out as much as possible.
  • Utilities. Make sure your lights and electronics are off and unplugged whenever you aren’t in the room or using them. Open the windows and use fans during interim seasons when you don’t need the air conditioning yet. Besides helping your utility bills, these actions also help the environment.
  • Medications. Always ask to switch your prescription medications to the generic brand when possible. This will save you a lot of money. Also when you can, see if you can purchase a 90 day supply of maintenance medications. Usually this is a cheaper option instead of going to the pharmacy every 30 days for monthly refills, and more convenient too.
  • Vehicles. In the nicer weather, you will save money by washing your own car at home instead of going to the car wash. Also look for coupons and deals online before you take your car for regular maintenance such as oil changes or tire rotations, there is usually always one available.
  • Insurance. Call around and see if you can find a better deal and pay less. This includes car insurance, homeowner’s insurance, renter’s insurance and the like.

Things to try:

  • Don’t Bring Your Credit Card Out for 1 Month. At first, you will probably feel restricted but this exercise will help you realize what you are spending money on. Which most of the time it’s probably an impulse purchase or an item you don’t truly need. When you pay with cash, you’ll often find you are more conservative with your purchases.
  • Pretend You’re Broke. Try this for 30 days – live on ramen noodles like your college days, and so on. This will show you that the salary you work hard for now should not be wasted on things that aren’t absolutely necessary.
  • Add Up Your Monthly Subscription Costs. As mentioned previously, jot down how much you are paying out in subscriptions every month. Even something that’s $40 a month adds up to nearly $500 a year. That’s a lot of money.
  • Check Your Statements. Watch out for those monthly automatic payments. Review all your monthly purchases and really scrutinize what you are buying. It always adds up to more than you think.

Need some help creating a monthly budget? Check out our easy fillable PDF budgeting worksheet!

Article Source: David Ning of Moneyning.com

Five Budgeting Tips You Can Live By

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It’s hard to make budgeting decisions. It can be difficult to keep an eye on your short-term and long-term financial goals when you’re busy with everyday life. But putting together and following a spending plan can work wonders on your finances. Here are five tips you can use starting today.

1. Budget until there’s nothing left.

If you love spreadsheets, zero-sum budgeting might be the right move for you. It’s budgeting so every single cent is accounted for.

Try creating buckets for specific expenses — housing, transportation, food, and entertainment. After assigning amounts to these costs, stash what’s left over in savings.

When you sit down to put together your monthly budget, you can make categories for your big expenses and then create line items for smaller costs. Smaller expenses would include activities such as eating out or shopping.

The goal is to stay on top of your money from the beginning to the end of the month. Then repeat.

2. Get your loved ones involved.

Money management is a tough subject for most couples. However, avoiding money talks causes bigger issues that go beyond banking. That’s why you may want to work with your partner to decide on monthly spending — as a team. Discuss your short-term and long-term financial goals as a couple. Look over what you’ve got in your account(s) and go from there. But don’t forget about your individual needs. Both of you may also want to have cash for items or activities that bring you happiness. And if either of you is a big spender, have an honest talk about what you might be able to realistically cut back on.

3. Take advantage of technology.

Do you like using mobile apps? There are some great ones that exist for tracking your spending. Online banking apps also help you with automatic bill pay and lots of other features. You can view your cash in and cash out with ease and really get a handle on what money you’re spending. We’re all busy and any way technology can help is a plus. Of course, if you’re more comfortable keeping track of your expenses with pen and paper, that works too.

4. Give yourself time to adjust.

People who embrace budgeting for the first time often struggle. While getting over this is key to success, you shouldn’t expect to become a money pro right out of the gate. Understand that you’ll need time to adjust and that small setbacks are bound to happen when following a budget. Also, keep in mind that you might have to change your plan from time to time. An approach that worked last year might not work this year due to changes in your personal life or career. Don’t be afraid to switch things up if necessary.

5. Think about today and tomorrow.

Kick off budgeting with short-term goals like paying your credit card minimums or saving for a new car.

But don’t forget far-off goals and life events too. If you were to pass away, some of your everyday expenses stick around, like student loan debt and mortgage payments. You need to make sure your loved ones won’t be left without the cash needed to cover these costs. Getting life insurance is a good way to do this. This coverage, which insurers offer as part of term or whole-life policies, can cover some of your expenses and spare your family from having to pay out of pocket.

How to learn more about life insurance

Life insurance may seem complicated, but it’s not that hard once you know the basics. Of course, we are happy to help all of our members. Learn more here, and you can also use our TruStage Life Insurance Calculator to compare different types of insurance and learn more about your options.

TruStage® Insurance products and programs are made available through TruStage Insurance Agency, LLC and issued by CMFG Life Insurance Company and other leading insurance companies. The insurance offered is not a deposit, and is not federally insured, sold or guaranteed by any financial institution.

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Article Source: © Copyright 2020, TruStage. All Rights Reserved.

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3 Ways to Recover From a Blown Holiday Budget

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Now that the holiday season has come to a close, you are probably looking at your bank statements and credit card bills with wide eyes.

So, what can you do to get yourself back on track financially after the holidays? Here are three helpful tips to set your budget straight.

Sell, Sell, and Keep Selling

Declutter your house and see what you can sell. It’s one of the easiest ways to get rid of extra things you no longer use, plus make some cash after spending during the holiday season.

  1. First, find out which big items you can sell and then list those on sites like Craigslist, Facebook Marketplace, or various selling apps (Let go, etc.)
  2. Next, look through your closets for brand name clothing that can be sold on eBay, or apps like Poshmark and Mercari. This can really add up. As you go through your closet, snap pictures of the items you are planning to sell on your smartphone and upload them to the above mentioned apps. See how you do – if your items don’t sell in a few weeks, then put them aside to sell at your yearly yard sale in the warmer weather or make a local clothing bin donation.
  3. Lastly, request a bag from Thredup.com or Kindermint.com and pack them with clothes that your family doesn’t need. Most of the items that don’t sell in steps 1 and 2, will be hand-me-downs or 50-cent-finds, so after awhile if nothing is selling and you only get a couple dollars for your items – you are still coming out ahead.

Don’t Spend Money in January

Have you ever tried a month without spending money? The idea is that you cut unnecessary spending (eating out, home décor buys, clothes, and so on), and eat out of your pantry, fridge, and freezer for the entire month.

You are permitted to give yourself $20-40 a week to spend on milk, eggs, bread, and fruit/vegetables at the grocery store – but that’s it!

This is a great time to use up any food items that you may have around but forgot about. Plus, an extra $300 or more would be nice to put toward any credit card debt, or replenish your savings account – right?

Earn Additional Income

Does your job allow you to add overtime or do freelance work? If so, take advantage in January and February to help you pay down those holiday bills.

Be creative. Perhaps you can ask your employer for overtime opportunities, or take on a small baby/pet-sitting position. Even renting out your home or car, can produce extra income if you have the means to do so and live/commute another way.

Recovering from high spending like the holiday season can be tough, but with these steps you can overcome that blown budget relatively quickly and start off the new year on a better financial path.

Article Source:  Ashley Eneriz for Moneyning.com

How to Save Money Even on a Tight Budget

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Saving money is important, but sometimes it can be hard to find extra money to save – right? While saving money can often be a challenge, it’s not impossible to do – even on a strict budget. Here are three ways you may be able to save when your spare funds are on the lower side.

Find deals online: Sites like Groupon or Living Social have a lot of deals in terms of entertainment and dining out. Did you know you can use them for much more? Both often have deals on electronics, automotive repair, health and beauty, home services and more! The best way to find these deals is to register with your zip code and browse around to find how you can save locally. If these are products and services that you’re already going to pay for or that you’re in need of, saving money in the process is an added bonus!

Trim it up: When you go on a diet, you may notice a little bit of weight loss in several different areas of your body. You should treat your budget the exact same way. Don’t try to cut back on (or completely cut out) one budget item, but trim a few dollars from different places. Some bills you aren’t going to be able to budge on, but you will most likely find a few areas you can cut back here and there. Take advantage of these savings and you’ll start to see it add up. Plus, you won’t feel as if you’re cutting anything out of your budget completely.

Spend more time at home: The more you’re out and about, the more you’re going to eat meals out and spend money on items you don’t really need. Instead of meeting your friends out for dinner and a movie, host a potluck dinner (ask everyone to bring something) – and watch your favorite movie or rent one from your local Redbox. You’ll save money, plus you can pause the movie when you need to and not spend a fortune on movie theater snacks. That’s a win-win for everyone!

Need help budgeting? Check out our online budgeting fillable worksheet!

Article Source: John Pettit for CUInsight.com

 

How to Create an Easy to Follow Budget

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Are you the type of person that when you see something you like, you just buy it? It really is important to plan for the future and really take hold of your finances. If you or someone you know doesn’t budget well, here are a few easy ways to get started.

Housing: This category will most likely be the largest portion of your budget. If you’re a homeowner, along with the mortgage, insurance, and property taxes – make sure you include necessary utilities (gas, sewer, electric, etc.), and some extra cash for any emergency repairs. If you’re renting, you’ll still have to budget for your monthly rent and any utilities.

Transportation: When it comes to transportation, there’s a lot more than just your monthly car payment. Gas, insurance, and preventative maintenance such as oil changes – should also be included within your budget. This is another area where it’s a good idea to save some extra cash for any repairs you may not see coming. Planning ahead will help keep your car on the road, which will also keep money in your pocket.

Life: This budget category will cover a lot (think food, health insurance, medical, clothing, entertainment, wireless, tuition, childcare, etc.). All of these items will add up to a sizable portion of your budget. You may need to separate some into their own category and monitor them.

Debt and Savings: This final category is one of the most important. Saving money for your future (401k, Roth IRA) is something you want to make sure you’re doing every month. The earlier you start, the better. You’ll be surprised at how a little each month can add up over time when you make use of compound interest. Also, make sure you’re steadily paying down any debt you have – so you can enjoy your financial freedom.

Need help setting up a budget? Check out our budgeting guide.

Article Source: John Pettit for CUInsight.com

6 Easy to Forget Expenses to Include in Your Budget

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Creating a budget is never easy, it can take months or even years to perfect the process. Plus, life is always changing so a budget that worked a few months ago might not necessarily work now. One of the most common reasons people find budgeting so hard is because there are so many different expenses to keep track of. The big ones, like housing and food, are pretty obvious. However, often there are little things we forget about that can derail a budget from the start.

The next time you evaluate your budget, consider these six expenses that people often forget to plan ahead on:

1. Celebrations

It seems like every week, we’re always celebrating something. From birthdays to weddings to holidays, our schedules are jam packed with social events. However, we often forget that these celebrations come with hefty price tags. Gifts, travel costs, and party attire can add up quickly. Not accounting for these items can really throw your budget off. For example, if you know you have a few weddings coming up in the next year, be sure to set aside funds to cover any associated costs. Also be sure to increase your budget during the holiday season to account for gifts and travel.

2. Pet Care

We love our pets, but there’s no denying that caring for them can get expensive. We tend to only think of pet care expenses in terms of things they use everyday, like food – but any pet owner knows that there are many other major costs associated with our furry friends. Healthcare, including regular veterinary visits, is a big one. Grooming and pet sitting is another. These are expenses for your pet that may not happen every month, but they’re regular enough that you should include them in your annual budget.

3. Coffee

Any good budget will include a category for food and dining, but don’t forget to include coffee in there as well. We all know how much a cup of coffee can cost – anywhere from $2 for a regular cup to $6 for a latte. Whether you make your own or go to your local Starbucks, make sure you understand how much you’re really spending on your coffee addiction every month.

4. Home Maintenance

Many first time homeowners are unpleasantly surprised by the cost of home maintenance. Aside from utilities and minor repairs, there are several recurring expenses, such as lawn maintenance, landscaping and weather proofing that homeowners often forget. Expenses like these can drive up the cost of owning a home considerably.

5. Me Fund

When we’re trying to stick to a tight budget, we often forget about ourselves. If you’re trying to cut your budget, spending on things you enjoy is likely the first expense to go. Don’t underestimate the value of having a me fund, though. It can be anything, from a night out to a pedicure – but doing even something small from time to time can drastically improve your mood and increase your productivity.

6. Emergency Fund

The one thing people most often forget to account for is an emergency fund. This is also the most important.  In life, you never really know what can happen, and you need an emergency fund to protect you from whatever life throws your way. Your budget should include a portion set aside for emergencies. Many recommend that you have 3 months of expenses on hand at any given moment. You can decide the amount you’re comfortable with and then start to save up for it. Just remember to make this a priority.

Need help setting up a budget? Check out our easy Budgeting Guidebook and Worksheet.

Article Source: Connie Mei for Moneyning.com