Living on a Shoestring Budget: Budget

Believe it or not, keeping some sort of budget really does help. When we do not think about all the bills we have to pay, it becomes easier and easier to blow a paycheck in one shopping spree and have nothing left over for bills. A strict budget is not always necessary, but being mindful of what you have and what you are paying for is important.

First of all, lay out all your bills and figure out how much money you will have left over after those bills are paid. Do not forget things like water and electric. If you support a function, figure that money in. I am paying back school loans so I have to figure those into my budget. Also remember when those quarterly or yearly bills are due. I have to remember months in advance when my car insurance bill is due so there is some left over in my bank account for that non-regular bill. If at all possible, set aside some money for a rainy day. Then figure out what you have left.

With what is left, how much will you need for food, gas, other essentials? What can you cut out from your ‘wish list’ to put to other essentials?

Then keep track of your spending throughout the month. It is easy to spend hundreds more than usual without even realizing it when we don’t keep track of our spending. It is even easier to get in more trouble when we are given money. I so quickly spend an extra $10 on three $10 items always forgetting that I had already spent the money. It is the same reason lottery winners almost always go into greater debt than they were before.

One thing to keep in mind when dealing with a budget is that it is not helpful to get stressed out and worried. Stress and worry does not change the situation we are in, they only keep us from thinking clearly and they put undue pressure on our physical bodies. Fear is a natural response to a probable or real problem, but it is only helpful in so far as it tells us something is wrong.

For example, when I look at my credit card bill and realize I do not have enough to pay it off, my first response is anxiety. But the problem is that when I let that anxiety stay around, I start focusing on the problem instead of the solution. Fear has told me something is wrong but then I must remove fear from me and start thinking of a solution for my problem. Is there extra work I can do for someone? Should I start a part time job? Can I hold a yard sale?

I would suggest not getting a loan to pay off the bill. Find some way to pay it off that will not cause a problem in the future.

Keeping a budget is really helpful in keeping on top of finances. In fact, ditching the credit card is really helpful in keeping inside your budget. You cannot buy an item if you cannot pay for it. Knowing you are not going into deeper debt every month is a good thing.