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Here is a list of my
favorite tips for weaving "money smarts" throughout your life. I'm sure many of
these are familiar, but I hope you'll pick up one or two new ideas. Aside from the list
below, the following three are my "favorites of my favorites:"
1) If you are new to budgeting, don't overwhelm your self and categorize your expenses
into too many "little" categories-start with a few big "buckets" at
first until you get the rhythm, then tune your budget more finely.
2) Make this a household activity by involving all members, and make sure there is some
"fun" in it for everyone.
3) Lastly, if you never go any farther than spending some time tracking your expenses for
a few weeks, at least do that. The insights you'll gain from paying attention to your
habits will go a long way!
General Tips
Okay, here is one "tip list" for you...
- Make impulse buying difficult (leave checkbook, credit cards at home).
- Make savings an "expense" item.
- Make debt repayment an "expense" item (this is what credit counselors do for
you).
- Have some fun money for each family member.
- Budget for a fun item (vacation, toy).
- Don't over categorize your budget (i.e. do not make too many "expense"
categories).
- Don't divide couple's paychecks functionally.
- Use an interest-bearing checking account, if possible.
- Create an "expense" item to pay off credit card balances.
- Pay off the highest interest rate cards first.
- Don't use credit cards again until balance is paid off.
- After a loan is paid off, keep paying the loan amount to yourself (make a vacation fund,
or next car fund).
- Set aside money monthly, for bills that are due quarterly, semi-annually, or yearly.
- Reconcile your budget at least once a month when reconciling your checking statement.
- Make sure to mark your last reconcile point in your budget.
- Try to get utilities or banks to change due dates of bills to make your work easier.
- Remember, just the act of identifying your expenses is extremely valuable. This is
commonly referred to as "tracking" your expenses. But remember, this is only half
of the budgeting equation. Tracking expenses is analogous to just looking in your
"rearview mirror" for information. You have to learn to look ahead and see what
is coming too!
Jane Chidester is the
author of " BudgetYes! 21st Century Solutions for Taking Control of Your Money
Now!" She also conducts seminars and is a published columnist on personal
budgeting topics. Her website, Budget Central,
is a repository of information and resources on personal budgeting, financial planning,
and household money management - a complete budgeting education. You can contact her atJane@TulipTreePress.com.
Credit and Debt Calculators:
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• Should I pay off debt or
invest in savings?
• What will it take to pay off my balance?
• Should I consolidate my
debts?
• How Much Am I Spending? |
