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Save Money: Take Charge and Budget Your Finances

Save Money: Take Charge and Budget Your Finances by Abundance G
With price of oil surging out of control and the negative toll its having on the dollar, prices of commodities are climbing out of range for the average family. As a result of this, it is highly necessary to make your very own strategic plan on maximizing your financial resources. You must make sure that every penny you bring through your front door is well spent.

Coordinate your finances and list your expenditures that affect the way your income is allocated. If you do this consistently over time you will become financially empowered and economically stable regardless of how the economy is performing.

Everything from your source of income to your cost of living determines what type of budgeting plan you create and your long term goals. Starting to take charge of your finances is key in understanding how to reach your economic goals and achieving financial freedom.

The following tips and recommendations are geared to help you become more budget conscious in your spending.

1. Math is not your enemy – Treat math as your financial partner. Don’t avoid taking the necessary steps you need in order to understand where your money is going. Try to compare prices for everything you spend your money on from every range of items from food to basic day-to-day household items.

2. Savings is your best friend in a crisis – Save as much as you can when purchasing even the smallest items. Exercise effective buying techniques by purchasing in bulk whenever possible. This will increase your reserves and cut acquisition costs. 3. You probably won’t win a million – Gambling tops the charts in making your life chaotic, broke and unprepared for real life financial crisis and unexpected issues. In addition to that, it also makes you more vulnerable to threats of becoming insolvent or bankrupt. A habit of $10 per day translates into $3120 per year (6 days per week). So what if you win $200 or $300 dollars here and there. If you did the math you might find that you are only winning some of the money that you spend back in lump sums but it is unlikely that you even break even. Start putting that same $10 per day or $200 per month into petty cash fund in preparation for your next emergency. Also, take up another more financially productive activity to replace your urge for gambling.

4. Know the difference between wants and needs – A need is something that you must have in order to sustain some level of living like food or water, shelter, or basic clothing. However, some of those same items can easily be confused as necessity when in fact they are far from it. You don’t need a $300 purse or $1000 shoes, but you do need something to keep your feet off the ground of you body warm in cooler climates. Skip the expensive foods and beverage stops on your way to work and do not go out to lunch each and every day. Put those extra funds into an account and watch how quickly the money will start to accumulate. When it reaches $500 start looking for a better investment vehicle to sock it into to make it work for your goals. Remember that according to a recent study, luxuries are second to gambling in terms of the degree of their money-stripping capacity.

5. Do not spend more than your annual salary – This is numero uno in every story about Rags-To-Riches that we ever read about. This famous cliché may not sound like fun but the truth is the principle behind it works. If you are highly consumptive in your approach to your finances, you will always be living on the tightrope of lack. The stress alone could add years to your life, make you more prone to addictions you don’t need or the hoards of Get Rich Schemes perpetrated by snake oil salesmen in almost every venue.

6. Be like Santa Claus with your list making – Make a list and check it twice to find out if the price on your item is highly naughty or at an selection friendly reduction. Your list is vital to your budgeting success. A wise shopper considers the full measure of the item under review and compares it other related options. Why buy a small jar of mayonnaise for $2.28 when a bigger jar from the same brand is on sale for $1.99? The only obvious reason is if you only use small amounts and the jar would go to waste before you ever used it all.

An undisciplined consumer does not care about the purchases that are made as long as they have enough money for the desired item at hand. Even if you are someone with a considerable amount of money, it only pays to take a look at what you do with your money that can have long term effects on your future of the lives of those you love. Even it you can easily afford that extra bell or whistle on your next do da consider and alternative. Donate the difference to a local charity or feed a small village in a third world country instead. If you are broke you already know that you really cannot afford to continue ahead with your current spending practices.

About the Author

Abundance G has over 13 years of experience in the financial services industry. After years of education she came to the realization that much of what is being taught by the average financial advisor is useless. For a complimentary Financial Basics 101 e-Course, please visit www.financialbasics101.com.