Edition 38 › Hope for Your Finances › Anonymous

Managing money Day to Day

Wed, 04/14/2010 - 18:48 — GentleVic

Saving money on everyday expenses in the midst of an economic recession could be one of the biggest challenges you will ever face in your financial life.


It's easy to get into panic mode when you listen to all the bad economic news that we're barraged with everyday. .Once you take control over your money and learn to live within your means, you'll never feel helpless in the face of a recession again.


From keeping your checkbook balanced, to spending less money on food and utilities to cutting out impulse spending, there are many simple things you can do to claim your power when it comes to saving money.


"Keep track of every cent that comes into or goes out of your life."


It doesn't matter how you track your spending - the most important thing is to do it.


Whichever method you choose, stick with it. Make it a habit. Don't fudge the numbers. Record your transactions as soon as possible.


Develop a budget


After you've tracked your spending for a few weeks (or months), use the data you've collected to develop a budget.


Start an emergency fund


There must be some Emergency Fund for unseen, unwanted situations like repair of Car, to pay Doctor Bill, etc. So if we do have them in our Savings, we would never be in Debts.


Balancing your checkbook

 is an important money saving habit to develop. Bank fees for non sufficient funds can run as high as $40.

Even if you ususally use a debit card you should still get a check register and use it. At the very least, you should get a receipt for every purchase and enter it when you get home.


We all know that we could use less electricity, water and natural gas with a little effort. The trick is turning conservation into a habit. These simple recession busting measures will result in lower utility bills and a cleaner environment.


* Unplug energy wasters like coffee pots and electronics when not in use.


* Set your thermostat higher in the summer and lower in the winter.


* Turn off the water when shampooing. This tip helps you use less water and pay less to heat it.


* Line dry your laundry when the weather is pleasant instead of heating up the house with the clothes dryer.


* Make sure your house is well caulked and insulated.


The list could go on and on but you get the idea. Saving natural resources can save you big money on your monthly utility bills. Try it for the next three months and see if you don't have more money in your bank account.


You can save big on groceries by getting organized. Plan your menus for the week and clip coupons from the Sunday paper. Some couponers recommend buying multiple copies to increase the savings. Larger chain stores usually have some form of discount card that can save you 5-10% on many purchases. You do give up some privacy because the store will keep a record of the purchases you make with these discount cards.


The bonus is that you will usually get more coupons at the register to use for your next purchase.


Open a retirement account


If you're young, you probably don't think you need to start a retirement account. You're wrong. No matter how old you are, now is the time to begin saving for retirement. Compound returns favor the young, and in a big way!

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