Don’t be a Prisoner to Your Budget
January is my “start over” month. I am one of those people
who has to implement change gradually. By the end of January, I hope to have
all my new plans in place.
This is the first January in many years that I have had to
focus on our family budget so closely. 2012 was a difficult year for my family,
financially, and my most important change this year is to try to get our family
budget under control. That means coming to terms with the “B” word. Can you
relate?
For years, I looked at budgets negatively. In my mind,
having a budget meant limiting the amount of money I had to spend on the things
I wanted, instead of the things I needed.
This year, I’m taking a different approach. My budget is not
going to tell me what I can’t spend. It’s actually going to help me find the
money I need to enjoy life a little more – even if it takes me a little longer
to pay off the debt I incurred as a result of my husband being out of work last
year.
A friend of mine has asked me to help her clean her home
twice a month for $100. I don’t know yet how I will spend that money – debt,
bills, or pleasure. What I do know is that I won’t be a prisoner to my budget
this year. I’m not saying it will always be easy, but I’m going to do my best
to make it work for me. Here’s how we can all make that work:
- Instead of paying your regularly scheduled bills once a month, pay half with one paycheck and half with the next paycheck. That may clear up your budget for other things. Paying credit card bills that way may actually help you pay them off faster, because reducing outstanding balance reduces the amount of interest charged to your balance.
- Ideally, you want to pay more than the minimum payment on your credit card bills. Try doing this every other month, instead of every month.
- Only pay for services you use. We never use our home phone, yet we continue to pay for it. Do you use all the cable channels you have? Call the company and work out a plan more compatible with the channels you watch.
- If you have more than one credit card, pay off the smallest balance first. It’s the fastest way to add wiggle room to your budget.
- Set aside a certain amount every paycheck for a splurge, whether you splurge immediately or save that amount for a larger purchase. Reward yourself for being responsible with your money.
Don’t be a prisoner to your budget. You still want to be responsible with your money and pay your bills on time, but make your budget work for you. For more help with budgeting, or to easily build a budget you can maintain, try FinanceWorks - a complimentary service of Neighborhood Credit Union or visit our Financial Education Center.
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