No matter what your income, like most, you will have trouble living on it. As odd as it sounds, irrespective of income, most people have trouble balancing the budget and living within their means. It is perhaps human nature or modern culture that we spend to the limit of our earnings and sometimes beyond.

Perhaps modern society, with freely available credit, has moved towards a ‘buy now, pay later’ style of money management although as we have seen those financial markets that support the modern citizen can collapse and finance can become harder to get and more expensive.

There is no better reminder, that the availability of credit is no substitute for discipline and good money management.

Saving money for future needs whether that be a deposit for a house, a new car, a holiday, a special event or a rainy day all starts with making a budget.

Budgeting
If you haven’t already, start drawing up a budget. You will need to work out how much money you are spending, and on what. Ensure you include everything right down to that cup of coffee you buy each morning. Gather all your bills together to find out what your other expenses are, know your income and start drawing up a budget.

This may be something that comes easy and you can put together rather quickly whereas for others it may, particularly a group or family, be a lengthier process of tracking where where every dollar earned is spent or allocated.

Sure, at first it seems like a chore, but it is a great and powerful feeling being in control of your finances and very worthy of the effort you dedicate. Think of it like this – would you rather a money monster telling you what to do or would you rather be telling your money what to do for you?

Attitude can play a large part in successful outcomes, you must be prepared to face and accept the truth and different people have different ways of approaching budgeting and saving money. It’s probably about finding the method or system that you are comfortable with.

If it is beyond you, there are financial counselors and advisors who can assist with getting finances in order and creating a budget and financial plan.

Useful budgeting resources online
The Commonwealth Bank provides a useful online budget planner and at the Australian Governments Understanding Money website you can find a free excel budget spreadsheet download.

Isn’t being frugal and saving money boring – What about living life?
At which point where you convinced that you need to spend money to be happy? For some that’s a big hurdle but it is worth remembering that some of the best things in life are free!

Learning to spend less than you earn and to use the difference for paying down debt, saving or investing has numerous benefits. Remember, money is just something we exchange for something that we really want. Being frugal and using money wisely is about getting the most value possible out of the income you receive so as to obtain what you really want.

Helpful Money Saving Tips

• Pay off your credit card bills before the interest free period expires.
• Consider refinancing your mortgage – ensure you have the best loan for your situation.
• Don’t treat shopping as a leisure or recreation activity, only buy what you need. Check out local government and council sites in your area as they usually have lists of free activities for recreation.
• Have expenses directly debited from your account – there is less chance of spending the money if you don’t have access to it. But also be sure to have enough in your account to cover these outgoings.
• Start a “rainy day” account for those unexpected bills.
• Keep a money box for spare change. It all adds up!
• Write out a shopping list before going grocery shopping, and stick to it.
• Shop around to ensure you get the best price – for everything, from insurance to food. Negiotiate hard, remember ‘never pay retail’!
• Prepare meals in advance. Pre-packaged and take-away foods are more expensive.
• Televisions, stereos, computers: Turn off at point when not in use, to cut down on wasted energy avoid leaving appliances on standby.
• Lightbulbs: If you use any light for four hours or more a day, replacing it with an energy saving equivalent will use a quarter of the electricity and last 12 times longer.
• Washing machines: new electronic models use power even when switched off. Switch them off at the power point when not in use, then just flick the switch when it’s time to do some washing.
• Home office: fax, printer, scanner: these have a very high standby consumption. If using infrequently, turn them off at the power point.
• Air-Conditioning: use the most efficient temperature settings. Check your electricity providers website, surprisingly, they will usually have great advice on being energy efficient.
• Consider Used before New: For those willing to do a little research great savings can be found via auctions, classifieds, markets etc.
• Take your Lunch to Work: For example a can of soft drink at the supermarket can be a quarter of the price, or less, of that at a take away or convenience store and water is even cheaper.
• Walk instead of Drive: As you know, walking is good for your health and it can save you money!
• Are you paying a fee for monthly payments?: Some institutions, for various services, offer monthly or bi-annual payments but how much extra is that costing over annual payment?
• Is there a Discount for paying on time?: Some companies offer early settlement discounts.
• Are you taking advantage or tax credits and rebates?: Governments of local, state and federal offer various tax incentives and rebates – check with your financial or tax advisor or relevant department.
• Discover Free Entertainment: Enjoy the facilities that your taxes and rates pay for like local parks and grounds, librarys and much more. Get creative!

And the list can go on and on. I guess, for some part it’s about respecting the money you worked hard for and to make sure it’s working hard for you and delivering the most possible value. It’s not about being boring or not having fun, having fun and being happy is a state of mind not a financial expense and there are many people that live in bliss without cost.

The big benefits from adding together all these small savings comes from what you do with that money next. Whether that be eliminating costly debt, putting that money to work via investment or achievement of whatever you goals may be.

Features, Personal Finance
budgeting, frugality, saving money