New Year, New Beginnings

It is a new year, and a new decade. So it is the perfect time to make some changes in your life, starting with creating a budget. Here are some tips to lay the path to a profitable year. 

The foundation for a  successful budget should always begin with the preparer having plenty of time and patience to construct it. Crunching numbers and seeing all of one 's debt in a pile can be fiscally frightening, as well as stressful. Choose a day where you have extra time, and no distractions. Collect all of you paper work ie, billing statements, utility bills, check book, receipts, etc., and organize them on a clutter free desk or table. Have plenty of paper and pencils ready, as well as a calculator. 

Create two lists. One for fixed expenses, such as rent /mortgage, or utilities. These expenses are those that stay about the same cost wise each month and that you have to pay to go about your daily life. The second category should be for your variable expenses. This should include groceries, entertainment, gas, and other like items. 

Total these categories and then compare the values to your monthly income. This should show where changes need to be made. Don't be afraid to trim the fat where needed. This will save you many headaches and worried nights. 

Now is the time for creative thinking and planning.

Heating bills high? Purchase an insulating kit for your windows to seal drafts. These kits cost less than twenty dollars, but can save you hundreds off your bill. 

 Perhaps the entertainment spending seems a little high. Try to brainstorm for ideas that will benefit you financially, but will not cut down on your fun. Maybe you go to the movies weekly. Try renting a movie from a video store, or the library where it is free. 

It may be the case that your grocery bills are too high. Grocery spending is something that can be reduced. Spend time searching the weekly circular ads for deals, and clip, clip, clip coupons! Coupons are cash. Try shopping at a store that doubles coupons, and watch your savings soar. Don't forget to follow my blog. I have cut my grocery spending by 75%!

Whatever the situation you may be in, struggling or not struggling at all, you need a budget. Everyone does. Staying on top of your spending will not only help you stay on track of your expenses, it will help you build for your financial future. You never know what kind of curve balls life will throw you, but with a solid budget, hopefully the next hard ball will land on a cushion of green.