Can't Live Within Your Means?
Rethink Your Budget
By E. E. Kane
Photo © Diego Cervo - Dreamstime
 If you have been living beyond your means, it's time to buckle down and stop breaking your budget. Here are some tips that will help you get serious about your financial health.
Review your budget.
Were you realistic about the fluctuation of gas prices and groceries? Did you allow for one-time expenses that you didn't anticipate? Find out why you are routinely breaking your budget, and adjust it accordingly.
Save, save, save!
To live within your means, you must save money every month for large, annual expenses and for emergencies. Whether you keep a piggy bank, a savings account, a financial spreadsheet or cash in envelopes, stash away money in categories such as, emergencies (loss of a job or a hurricane swept away your home), vehicle and home maintenance and repair, property taxes, and major medical issues not covered by insurance. If your budget allows, save for holidays and vacations—even if it is only five dollars a month. Then turn the key on that account and forget it is there until the real need arises. |
Don't set yourself up to fail.
Leave the checkbook and the debit/credit cards at home when you shop, especially for groceries. Make a detailed list of what you need, carry a calculator, and pay cash.
Give retail windows the cold shoulder.
If impulse purchases are your budget's Achilles' heel, don't go shopping for fun. As the old saying goes, what you don't know can't hurt you (and in this case it's true).
Alter your attitude.
If you follow the above steps and you're still over-budget, it's time to make some serious lifestyle changes:
- Start by cutting out what you can live without, or find ways to do the same thing yourself.
- Instead of replacing broken appliances or throwing out clothing that needs mended or altered, employ a repairman and tailor.
- Unhealthy habits are expensive—this would be a great time to break a few.
- If you formerly treated yourself with luxury items, rethink what makes you feel good. How about a free walk in the park, a trip to the library, or doing something for someone else?
Although discipline and cold turkey quitting can be painful (and it is, if it's your coffee or cigarettes), if you trade feelings of punishment for the reward of achievement, you may jump the current financial hurdle and gain an all-around healthier life. |
