A good way to get control of your spending is to use the “envelope method.” First make a realistic spending plan. Hummingbird’s Credit Counseling program can assist you with this. Continue to write out checks for your monthly bills such as utilities, car payments, rent or house payment, etc. Place a predetermined amount of money (from your spending plan) in envelopes for all other (variable) expenses such as entertainment, personal grooming and groceries. Use a separate envelope for each category of such expenses. When there is no money left in the envelope for the particular category, you cannot spend anymore on that category until the envelope is due to get filled once again.
If you get a large tax refund each year, check with your employer to see how many exemptions you have claimed for payroll tax deduction purposes. If you are receiving large tax refunds each year, the government has had the use of your money all year long when you could have had that money to use or save. If you increase the number of exemptions you claim, you will get more money each pay period and less at tax time. The dollars that are added to your paycheck can help to balance your budget or be drawing interest while set aside as an emergency fund.
You may wish to consider major changes to reduce your expenses. One way is to consider getting a roommate or housemate. Splitting the cost of rent or a mortgage payment and utilities will lower your expenses on a monthly basis. Be sure you know enough about the person to be assured that he or she will be trustworthy and make all agreed payments.
If you are self-employed and have an office outside your home, consider the possibility of moving your office into a spare bedroom in your home. Your office rent and utility bills are thereby eliminated. You can save on gasoline expenses, eat at home instead of convenience restaurants, and a portion of your utilities and home rent or mortgage payment will be tax deductible.
Consider checking out garage sales or yard sales to purchase an additional piece of furniture or a needed item of clothing at a very low price. You may want to consider having your own yard sale if you have items that you no longer use or need. This can earn you some additional money while also assisting you in getting rid of clutter.
Try a simple hairstyle that doesn’t require a great deal of money to keep up.
A part-time job for you, your spouse, or your teen-aged child can sometimes bring in enough extra income to make up a budget shortfall.
