It’s a very common scenario. You’re going along just fine, but as the end of the month approaches, you realize that you’re going to be short on cash. There are still bills that are due, but not enough money in your bank account. So, you turn to credit cards, or, worse, payday loans, just to make ends meet.
Well, you don’t have to live this way. If you set up a realistic household budget and stick to it, you should have enough money to get by each and every month as well as cash to put toward your savings.
Getting Started with Your Household Budget
There are simple strategies that you can employ to help you get started with a budget and follow it daily. And while life on a strict budget may seem restrictive at first, over time, it will simply become habit. Eventually, it might even be fun for you to watch the savings add up.
- Do the math. First, you’ll need to sit down and get an honest picture of how much you really have to spend on unnecessary items. Doing this is as simple as creating two columns on a piece of paper. In one column (A), write down your total expected income for the month. In the other column (B), add up your bills and regular expenses. Now, subtract the total of column A from column B. What you have remaining is your expendable income.
- Make room for savings. From your expendable income total, subtract the amount that you want to put into your savings account or emergency fund. Even if it’s just a very modest amount, barring some unexpected expense, it will add up over time. Of course, if an emergency does come up — such as a flat tire or other necessary car repair — you’ll be glad that the cash to cover it is available.
- Keep a journal. If possible, start writing down everything on which you spend money. After a couple of weeks, you may be surprised by what you discover. For instance, that three dollar coffee that you have every day might seem like a trivial expense, but you’ll see that it adds up over time. Or, if you’re spending eight dollars every work day to get takeout for lunch, it will be easy to see how much money you’ll be able to save if you start bringing lunch from home. By cutting out small, unnecessary expenses, you’ll probably be able to put more money into savings every month.
- Don’t yield to temptation. Once you’ve established your household budget, don’t ruin your hard work by blowing a lot of money at once on an expensive meal out, a concert or a weekend trip. Of course, it’s certainly okay to treat yourself from time to time, but you should always keep your long term goals in sight. So, if you know that a big splurge will be harmful to your budget, try to resist the urge to be a big spender. Instead, look for smaller, more budget-friendly sources of amusement. Take a walk in the park, plan a picnic or organize a movie night at home with your friends.
Again, living on a budget may be hard at first, but the eventual rewards will be well -worth your efforts. In fact, when you experience your first worry-free month, you’ll probably wonder why you didn’t establish a household budget sooner.
Bad Credit Auto Loans to Fit Nearly any Budget
If you have bad credit and need to finance a car, Heartland Auto Loans can help. We’re able to work with most credit types, and we have a full inventory of affordably-priced new and used vehicles. We’ll be happy to accommodate your budget and get you back on the road fast.
Just fill out our simple and secure online application to get started today.