| Managing your personal budget can be simple and can | | | | four ounces of water. You're still getting good nutrition, |
| save you lots of money. Make a plan. Work your plan. | | | | but are getting fewer calories and are saving half the |
| Track your actual expenditures. Change your plan. It is | | | | cost. Pour four ounces of diet pop or soda water into |
| not as hard as you might be thinking, and the | | | | four ounces of grape juice, and you have a healthy, |
| wonderful feelings of being in control and finding | | | | low-calorie, low-cost drink that tastes great and |
| money you didn't know you had are priceless. | | | | quenches your thirst. |
| Ok. This sounds good, but how do you do it? Use the | | | | - Don't pay credit card interest. Force yourself to stop |
| free spreadsheet described below and follow the | | | | charging ANYTHING for two months. Pay cash only. |
| steps. The spreadsheet is easy to use, and it | | | | Then, always pay more each month than you charged |
| becomes fun to type into the budget plan your various | | | | that month until the card is entirely paid off. The |
| estimates of spending your money and instantly see | | | | interest you no longer pay is "found" money. Change |
| what the total expenditures would be. | | | | to a credit card that pays you a percentage back and |
| 1. Go to 2. Click "Free Downloads" at the upper right, | | | | doesn't charge an annual fee, but be sure you always |
| and download the free budget spreadsheet. Save it as | | | | pay off the balance in full each month. |
| "Expenses2007.xls." | | | | - Get a free checking account so you don't have to |
| 3. Click the link, print, and read the instructions for | | | | pay check-cashing fees. Many banks waive account |
| tracking your expenses. | | | | fees if you have your paycheck or social security |
| 4. Enter your actual expenses, so far this year, to the | | | | check direct-deposited or if you have a savings |
| "Expenses2007.xls" spreadsheet. Don't worry about | | | | account. Don't bounce checks. Don't get advance |
| being 100% accurate at first. Then save a second | | | | loans on your paycheck because the fees are very |
| copy of this spreadsheet and name it | | | | high. NEVER get the immediate income tax refund |
| "BudgetPlan2007.xls." | | | | loan from your tax preparer. They charge a FEE. |
| 5. Use the "BudgetPlan2007.xls" spreadsheet. There is | | | | Choose direct-deposit for your tax refund and you will |
| one page for each month. Across the top are the | | | | get it quickly. |
| expense categories, such as housing, automobile, | | | | - Use your income tax refund to help get your credit |
| groceries, restaurant, medical, etc. Enter your predicted | | | | card paid off or to help break the cycle of always |
| detailed expenses under each category. You might | | | | needing to get a paycheck advance loan. If you got a |
| type in several estimated expenses under groceries, | | | | large refund this year, get help from your employer to |
| for example. Look at the monthly grocery total, and if | | | | calculate if you can reduce your tax withholding for |
| you want the total to be bigger or smaller, just change | | | | next year. Then you will get more money in your |
| some of the detailed expenditures. Do this for every | | | | paycheck every payday. |
| month until you have estimated all twelve months of | | | | - Use electronic bill-payment for many of your bills and |
| the year. Then look at the one-page yearly summary | | | | save the thirty-nine cents stamp, the envelope, and the |
| and see the totals that the spreadsheet automatically | | | | check cost. |
| calculates. | | | | 7. Type your revised spending estimates into |
| Yikes! The total is more than you are going to have in | | | | "BudgetPlan.xls" as you think of them, and let the |
| take home pay. Well, it's better for you to know that | | | | computer instantly give you the new totals. Keep trying |
| now, rather than too late. | | | | until your total estimated expenses are less than your |
| 6. Think where you could spend less money. | | | | total take-home pay for the month or the year. |
| - Spend less on gas by car-pooling with a neighbor. Fill | | | | 8. Continue to track your actual expenses in the |
| up on Wednesdays if gas prices always go up on the | | | | "Expenses2007.xls" spreadsheet and compare them |
| weekend. Walk or bike instead of driving. | | | | to your "BudgetPlan.xls" every month. When |
| - Lower your grocery costs by buying more basic | | | | expenditures aren't going according to plan, you can |
| foods and fewer prepared, ready-to-eat foods. Buy | | | | easily play around with entering different numbers in |
| the large box of old-fashioned oatmeal. Cook it in your | | | | your plan to decide what changes to make so you |
| microwave and add skim milk, cinnamon, and sugar, | | | | don't spend more than you earn. |
| even fruit. You'll have a really delicious, healthy | | | | The more months you track your actual expenses the |
| breakfast or snack for pennies a serving, much | | | | easier it gets to plan for future months. Soon, you'll find |
| cheaper than other boxed dry cereal. | | | | you don't want to live without your plan and your |
| - Mix four ounces of pure grape juice and three or | | | | expense tracking. |