Five Simple Ways To Deal With Finances

By Author: Chris McClelland
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In an economy that no longer requires description because everybody reading these words is up on the doom and gloom, it is good to know how to effectively administer what funds are actually coming in, and how to capably manage how much money is left at the end of the month. Everybody is used to hearing about Quicken, Intuit Quickbooks and the recent Microsoft Money. However, if someone cannot allow the time, money, or oomph to use such software, there are many easier ways.

Write it down. Most financial experts advise the public to track spending for numerous months. You can get a notebook just to record spending or write down expenses in a planner you already use. “That’s probably the top low-tech way,” says Nathan McGee, who writes a financial blog. “It can be eye-opening. ‘I’m spending so much on groceries’ or ‘I spent $150 last week eating out for lunch.’ Just having an awareness of where your money is going helps you control spending.” Sidenote: McGee and his wife ...
... put away $500 per month.

“I have to track my spending,” says Clarky Davis, The Debt Diva. “That is key to your whole financial plan and spending plan.” She realized many of her usual bills came expected at the same time each month. “I spent one paycheck paying all my bills, even sinking into savings,” she says. “Then the next inspection, I had all this money that I was spending on other (supplementary) things in its place of paying back savings.” Call your sources of regular bills, such as credit card and utility companies, to see if you can change due dates to make certain they are spread throughout the month.

Save receipts. keeping receipts also functions as a backup system for any purchases you don't remember to write down. You can carry a small bag in your pocket for receipts or set aside a location in your wallet or purse. Make sure to place them out and alter them accordingly when you get home. “You could get a vivid orange box or anything that’s prominent or noticeable and put it within the usual pathway you’re going to follow when you get home,” McGee says. Stay on top of it or you’ll be weighed down. “Some people put off going through the receipts until later, and it really piles up,” McGee says. “Subsequently they have three months of stuff they haven’t actually dealt with, and they have to play catch-up. It gets really disappointing.” The Debt Diva also believes in saving receipts. She uses them for bi-annual checkups too.

No matter what procedure you use to keep track of expenses, cut them. Some people swear by an envelope system, particularly for provisions, dining out, clothes and other expenses a household can reduce. Budget the quantity you’ll spend in each segment of your budget for the month and put that much cash in an envelope. When the money in an envelope runs out, you’re finished spending on that division for the month.

Joanna and Josh Burgess started using the envelope system soon after they got married in 2006. They started with a physical box with envelopes labeled for each expenditure section, all but gas. Gas was a virtual envelope that stayed in the checking account in order to pay at the pump with their check card.

“When a paycheck came, all the envelopes were filled with budgeted amounts all but the credit card envelope, which was left blank,” says Joanna Burgess. “If we were away from home and had forgotten to grasp the cash for the proposed purchase, we’d pay with a credit card. Then when we came home, (we’d) shift the cash from the intended envelope to the credit card envelope to essentially say, ‘This money is exhausted.’”

They’ve paid off school loans, saved a down payment for home buying, set aside an emergency fund and attended a cousin’s wedding ceremony in Hawaii. “For us, most of our entertainment is in eating out,” Burgess says. “Having a cap on how many times per week we can eat out is where we see our largest savings.” The Burgesses save $300 a month. “By spending on credit instead of cash in March 2008, we overspent by $300, about 40% of our financial plan,” she says. The Burgesses are back to the envelope system. “I’ve never done it †too numerous envelopes,” The Debt Diva says. “But individuals I know who use it love it. They say they can see and feel the hard cash right at hand.”

Hard cash only? For some persons, spending only in cash helps cut expenses because handing over those bills is more touchable than writing a check or swiping a debit card. But for others, ready cash in the wallet is more simply exhausted. It all depends on your fiscal accountability, so be frank with yourself before adopting this. “I discover when I have cash, I tend to spend it faster,” McGee says. He uses a bank debit card and leaves his credit cards at his house for emergencies. You will find that you are much less likely to overdraw your checking account and any amount you cannot remove from the ATM less than a $20 interval can roll over, stretching your budget a little.

Amy Dacyczyn from “The Tightwad Gazette” broadly publicizes the thought of contrast shopping. To manage your grocery expenses, start a cost book or spreadsheet to track prices of objects you repeatedly buy. “Persons imagine they remember the cost at the places they usually shop,” says Jenn Fowler, another blog writer. “But unless you’re incredibly skillful with statistics, it’s tricky to hold all those prices in your head. Sometimes, when you’re dealing with unstable sizes, it’s difficult to know naturally which is the better deal. If one grocer in your area typically has lower daily prices, use that store as a point of reference, and then when stores put things on sale, underline the sale price. You’ll soon see patterns in how often certain things go on sale.” She advises saving your receipts and writing down prices when you get home so you don’t look noticeable in the aisle.

To further cut spending on groceries and staple items, a conscientious bargain hunter can also spend a little time online finding free items and coupons. These can be found at your favorite “free stuff” site. A lot of free things sites find some of the best cuisine, health and beauty products, etc., which are available for ordering online, straight from the producer or a vendor. These free things sites are also awfully good about posting coupons that can be printed out and instantly used to purchase (or obtain for free) high cost or high purchase things. This is very effective for stretching out your day after day purchases.
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