Tips for Budgeting* To better help YOUR LIFE

Being 21 years old and living on my own is one of my greatest accomplishments. It is great to have YOUR home to come home to every night after work and the gym! :) However with living on your own, if there is one word you need to know it would be: BUDGET. This is essential for any living person, especially someone young and just starting out. A well planned and successful budget is mandatory for a good life, especially because it is congruent with your credit score. A bad credit score does not help lay out the proper foundation to a well-lived life.

Every month I make a budget plan. I take my monthly income and then make categories of what I can spend where. Brief example:

December 2010: $XXXX
Rent:____
Power:____
Water:____
Cell Phone:___
Groceries:___
Direct TV (what I have, you may have something else):___
Internet:__
Car Insurance:___

Those are some of your essentials that are normally in a household. Write out what you can spend where to help keep you on track and prevent being late on bills and spending money you do not have. Since I have been living on my own, I have never been late on a bill payment and budget can always ensure that.

A few more categories I add are:
Dining out:____
"fun" Shopping:____
Credit Card Payment:____
Gym:___
and most importantly... SAVINGS! Even if it is only $20.00 a month. It is very important to set aside something from each pay period. If you want to add even more specific categories it is a great idea.

Other things I do to help save money and ensure successful run of my budget is sorting through coupons. I get a huge envelope every month of coupons sent to my apartment that are not only grocery store coupons, but a ton of dining out, clothes, and services around the area.

You may get coupons that do look of interest now but save them! You never know when you might randomly need a new tire - and if you have a coupon that can help you save money.

I put my coupons into different envelopes and label them. I have categories of: Dining Out, Groceries, Services (car, cleaning, etc), Clothes shopping, and Home goods. So when I am about to venture out somewhere or think of something I need, I sort through the specific envelope to see if there is something I can use.

Below are quick tips on helping you create, manage, and implement your monthly budget and save you money:

-When you leave to go buy something you need or take a shopping trip, go to the ATM and take out the specific amount of cash you are allowing yourself to use and leave the debit/credit cards at home. That way you will not give into pressure!

-Email instead of long distance phone calling.

-Going to RedBox for a movie instead of Blockbuster.

-Pay bills according to budget. Do not pay just the minimum required amount if your budget allocates for more.

-If you spend $5 a week on your state lottery, you could save $260 a year.

-Start saving for Retirement now.

-Think twice when making purchases. When you think you just have to have something, take a deep breath and really ask yourself if you need this.

-Keep yourself surrounded by people who are not so careless with their own money.

-Reserve credit for major purchases, genuine emergencies, college education.

-Provide a weekly or bi-weekly allowance for each member of the household.

-You can save hundreds of dollars a year by shopping at the lower-priced food stores. Convenience stores often charge the highest prices.

-Before you go grocery shopping it is a wise idea to eat something. You'll buy less junk food on a full stomach.