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Hopefully you’re up and running with creating your monthly budget. If so, then let me congratulate you for taking a major step in gaining control of your money. If you haven’t started yet, it’s never too late!

In the last Your Money & You post, we discussed creating a monthly budget and some things to be mindful of while doing so. In an effort to help you reach your budgeting targets and goals, today we’re going to explore a few ways you can cut back on your expenses and give you a few tips on getting in the habit of budgeting.

While creating your budget, sometimes deciding where to cut expenses can be the hardest part, so here are a few suggestions:



  • Home/Utilities: Cut back on extra subscription channels for cable/satellite service; Shop around for cheaper home and auto insurance; Don’t overheat or cool when you’re home (if you can stand it at 68 degrees in the summer, don’t turn the A/C to 60); Turn off lights when you’re not in the room; Consider dropping your land line phone at home, your cell phone may be all you need considering most plans come with free long distance services.

  • Food: Substitute dining out for less expensive groceries, Be a smart grocery shopper-cut coupons, shop at discount stores, and stock up on sale items; skip gourmet coffees and make your own; Take lunches and snacks to work; Substitute potlucks or picnics for expensive socializing at restaurants.

  • Personal: Pay cash when possible instead of using credit cards, and you’ll save on interest charges. Find a bank with a no-fee checking account if you don’t have one; Only use ATMs where you won’t be charged service fees; If you’re in school try to purchase used instead of new text books; Quit smoking; Have cocktails at home and then go out. Go to matinee movies instead of going during the costly nightly hours.


    • Keep in mind that budgeting is not about hardship, but about reaching your financial goals and increasing your success rate, so make it a habit. Here are a few tips to help you build the budget habit:

    • Write it down. If you don’t, you probably won’t stick to it.
    • Think Ahead! If you know your situation is going to change — a new baby, new winter clothes, a new job — plan for it.
    • Review your budget regularly. A good budget grows with you, so it’s worth re-evaluating. If your circumstances change, your budget should too. For example, if you get a pay raise or your bills increase be sure to make the necessary adjustments to your budget.


    Once you have worked out your budget, think about your financial goals and when you want to reach them. Maybe you have a large debt load or have been spending frivolously when you could have been saving towards the future. You can avoid repeating past mistakes by analyzing them carefully and making a conscious decision to make healthier financial choices. Next we’ll take a look at debt management to see if we can help lighten your load. Stay tuned for more on Your Money & You!


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