Budgeting

I have learned that one of the best ways to save money is to have, and use, a budget.  Within a few months of having a budget and keeping track of our spending in each category I was shocked to find that money was being...well...wasted!  I say wasted because I found that I was spending too much in some categories.  By determining exactly where the money was going I was able to come up with a plan to reduce spending.  As an example, we used to spend way too much going out to eat.  I realized that by menu planning we are not nearly as tempted to go out or pick something up on the way home because I know what was for dinner, and I know I have the ingredients on hand.  I also realized that I needed to reduce our medical costs.  You can read my post here about ways to reduce medical expenses.  Budgeting and expense tracking helped Tara to realize that she was spending too much on utilities and trash pickup, so she looked for ways to reduce those expenses.  You can read her posts here and here.

When I began budgeting I struggled with a way to budget for expenses that aren't paid on a monthly basis.  For example, I pay our auto insurance every six month.  To keep things simple, I came up with the per-month cost and in addition to our regular savings, I deposit that amount into our savings account each month.  When the bill comes in the mail I do not have to worry about having the money.  I simply transfer that amount into my checking account and pay the bill. 

Have you found any tips that help you with your monthly budget?  If so, I'd love to hear them! ◦

Budgeting