Do you have a budget? Do you like it? I explain my 15-minute budget in this 1-minute video. The first time I tried this budget I saved $2,000. Let me know if it works for you!
Do you have a budget? Do you like it? I explain my 15-minute budget in this 1-minute video. The first time I tried this budget I saved $2,000. Let me know if it works for you!
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August 20th, 2010 at 8:31 am
Great video and advice. Finding a budget that “works for you” is definitely the key. I find a lot of people try one or two and then give up saying budgeting is “not for them.”
The list of fixed expenses is also a great place to start when identifying easy things to save money on. Many of those are long-term, recurring items, so saving even a few bucks on each can add up over time. For example, your rent may still be there a year or two from now, but there is no reason you can’t try and get a lower rent. Same for utilities, insurance, cell phone plans, etc.
Great post!
August 20th, 2010 at 10:26 am
You make it sound so simple, I’ve got to try budgeting now!
August 20th, 2010 at 11:27 am
Can you suggest an easier route for us who are self-employed?
August 20th, 2010 at 3:01 pm
@Erica, I’m not sure it really gets very easy for self-employed (or others with irregular income). I think Dave Ramsey’s variable income budget is probably the best/easiest out there.
Basically, with that, instead of putting your salary at the top, you put all of your necessities at the top (food, utilities, mortgage, transportation) and then work down the list of priorities. When money comes in you dedicate it to the most important first and then waterfall it down.
If you can predict some “base” then you can play with what works for you. But here are his thoughts for you – http://www.daveramsey.com/article/how-to-budget-an-irregular-income/lifeandmoney_budgeting/
Hope it helps.
August 20th, 2010 at 4:05 pm
In addition to this method of budgeting, I also divide what’s in my money pot by the number of days left until the next paycheck which gives me an average daily idea of how much I could spend each day. This number varies of course but keeps me from spending too much in 1 day. I often have a few hundred bucks by the next paycheck which goes into the new money pot. I can then decide whether to pay down debts or put it in my savings.