Make a Call or Switch Providers....Get an intant raise!

When is the last time you checked your cable or internet bill. I mean really looked at the breakdown of charges and what you are actually paying for each month. A year ago I was only paying $19.99 a month for my internet service and this month my bill jumped to $55.95!

I am willing to bet many of you have at one time or another noticed this same turn of events with your service. It starts out so low and reasonable and then one day you are trying to figure out, "When did my bill get so high"?

Cable and Internet Providers today often get new customers with their Teaser Rates.  

They advertise extremely reasonable rates in hopes of gaining new customers and then once you are "sucked in" its pretty easy to keep you. These are simply introductory rates to keep you happy during the "Honeymoon Phase" and then as time passes (6 months to a year depending on the deal you score) the teaser rate expires and the regular price kicks in. By this time many of us are comfortable with our service, we have stopped paying attention to our monthly bill, and quite possibly, we don't realize the opportunity to save is out there! All the while the company is earning more, and you are saving less.

Make a Change!  There is a simple way for you to save money on your cable/internet bill.  It involves 4 easy steps and no more than 30 to 45 minutes of your time.

1) Check your options - See what else is being offered out there.  For me this wasn't that hard. My email inbox gets advertising for lower internet and cable offers almost daily, and the the number of commercials on TV now?  Need I say more. It's obvious the TV and internet companies are out there trying to win you over. From your competitors ads, select which offer fits your needs and is the most reasonable to you and have it ready lying in front of you. This offer, your possible new bill, looks pretty appealing doesn't it?

2) Just Ask -   Before you make any changes, pick up the phone and call you current provider. Let them know you noticed a jump in your bill and ask what can be done to reduce your rate back to the teaser rate. Feel free to let them know there are other companies out there that can offer you a lower rate.  Most often they will tell you nothing can be done or a very little discount is offered.  That's ok. You are on the right path and these operators don't have a lot of leeway with decisions they can make.

3) Ask again - There is always going to be someone higher up the chain you can speak to. Ask to speak to their manager or another department, such as a Retention Department. Going up the ladder of command will give you another shot at getting the savings you deserve.  Remember, I asked you to check your competitors offers first. Be ready to use this as back up as you are speaking to the representative. Never be forceful or demanding. Be kind and let them know you appreciate their service, and you would like to know your options. Let them know you have better offers on the table and you may have to cancel your service if you can't get a better deal.  *Be ready to follow through with this*   You may be surprised at what they can do!

4)Make the change - If your current company can't match the offer you are seeing with another company, then be ready to make the change. If will save on your monthly bill and it will be worth it.

5)Repeat the above -Remember you just signed on to a new deal. This new deal is either with your current company because they gave you an extension on your discount or a new one altogether, or you went with a new company.  This new deal is almost always just another "teaser rate" because the company will do it's best to eventually get you back up to their regular rate. Mark your calendar for 6 months to a year from now and be ready to repeat the steps above in order to keep saving!

Here is proof with my personal experience.

Current Provider - Internet only                                           Compitors Offer -Internet Only
Monthly bill = $48.95                                                                  Monthly Bill = $29.95        
Monthly modem lease = $7.00                                                     Modem Purchase = $100
                                                                                                       (mine to keep)
12 Month Total = $671.40                                                           12 Month Total = $459.40

**My current provider couldn't offer me any more of a discount because this amount was a discount from the regular rate of $92 a month! When I couldn't get my current provider any lower, I switched. I just saved myself $212 for the year PLUS I have a modem that is mine to keep rather than having to lease one! This switch only cost me about 30 minutes of my time to do the research and make the phone calls**

Good luck and don't let the providers rob you of your money any longer!

Expect the Unexpected

I hit a bit of writers block this weekend struggling with the topic of my next post, and then it came to me!

I hit the road on a beautiful drive back from Tennessee this past weekend. As I was enjoying the Spring colors, feeling the warmth of the sun shine through my car windows and, and singing at the top of my lungs to a blaring radio, I suddenly noticed it staring back at me......My engine light had come on and I was 2 hours from home. What? I gripped the steering wheel and prayed my car would make it...


Thankfully I made it home with no problems and I popped right on over to a service mechanic this morning and 4 hours later walked about the door with a car good as new. Without giving too much of the details, I will share that it was a $300 hit to my bank account. All of this occurred in a 24 hour period and not one little sign of stress, anxiety, or doubt entered my mind.  Several years ago, if this had happened to me, this peace of mind I was experiencing now, would not have been happening back then. I would have been a complete wreck because a $300 dollar bill out of nowhere was not something I used to plan for. However, because I have learned to improve my budgeting techniques, I have been able to stay in better control of my finances. The added bonus, my stress and anxiety has remarkably improved!

So my point being, I was prepared.  Are you?

As you work on your budget and try to figure out how much you should expect to spend each month in all those little categories, remember that their are 2 kinds of expenses in life.  Those that you expect to happen, and those you have no idea are coming and smack you right in the face when you least expect it.

These "expected expenses" are a little easier to budget. We know that we have to pay our housing bill. We know we have to keep the lights on. We know food has to go in our stomach.  It's the unexpected that we don't want to budget for because we hope and pray they never happen, but I'm here to tell you know, YOU CAN NEVER BE TOO PREPARED.

If you have built yourself a budget I would like you to go back and visit it now and make sure you have the following categories included.  It may not be easy to set money aside for these things, but it will give you peace of mind, and the ability to pay the bill when the worst case scenario happens.

Housing Maintenance -  Think about all your major appliances and other amenities of your house. Refrigerator, washer, dryer, dishwasher, heating and air, water heater, swimming pool, fire place, etc. Are you prepared in the event one of these things breaks down or all the way dies on you?  Even if it is far from its life expectancy being over, you never really know if you'll have a problem.  Save a little money each month. It's up to you to decide the amount. The more you own, the more you should save. The older your belongings, the more prepared you should be.


Car Maintenance - Even if your car is brand new and you are fully insured, you never know when that out of the blue nightmare will happen. Someone smashes your window, a flat tire, etc....I'm not that savvy when it comes to the maintenance of a car so I set aside a little more than most people might to keep my peace of mind. The more you own, the more you should save. The older your belongings, the more prepared you should be.

Emergency Fund -  As much as I sit down and try to prepare myself for the unexpected I still like to have an extra cushion. I set aside a little money in this category for the truly crazy unexpected things I cant think of with my most creative imagination at work. For instance, 6 months ago someone smashed my car and stole my laptop.  I didn't ever see this coming, but thank goodness for my emergency fund!

Here are some other categories where you may not need a completely separate category, but I still encourage an added buffer in the amount you budget each month just to be safe.

• Pets - unexpected illnesses
• Children  - unexpected ANYTHING, they are kids :)
• Medical Expenses - accidents and illnesses not covered by insurance

 End of Year Reward - At the end of each year, if I have money left over because I didn't need my emergency funds I have an added bonus of money.  I then allow myself to either put that money towards goals or wishes I have set for myself. (More on that later) 

 

  

Sharing my Budget Spreadsheet

Alright people! I have been promising my Excel Spreadsheet so here it is.  Trust me, the delay was only in my lack of knowledge with html coding.....but I got I figured it out!

If you have not read my previous posts and you are new to this blog, I encourage you to do so before moving forward. Here are some previous posts that will help you catch up.

Budgeting. Learning from our past, before we move forward.

Drafting your Budget

Now that we have looked back, and thought about our goals for the future, lets build us a budgeting spreadsheet that we will use to track our finances and help us really see where our money is going each month!


I have attached a copy of my spreadsheet for you to download. Please let me know if the link doesn't work.

Blank Budget


If you cant get it to open it should look something like the this....

BUDGET COLUMN -  go in and manually input your ideal budget amount each month. What you hope to earn in income should be positive (0.00) and what you hope to spend in expenses should be negative (-0.00)

ACTUAL COLUMN - At a time you decide on, pull all your account statements (credit cards, bank accounts) and go one at a time through your transactions and input them in the category you deem most appropriate.  Remember income should be put in as a positive number (0.00) and expenses should be a negative number (-0.00) I do this on the 1st and 15th of each month.

MULTIPLE ENTRIES - If you have more than one transaction in a category in a given month you will need to make sure you enter them as follows.  i.e. you go to Macy's 3 times and you see on your credit card a charge for $59, $62, and $12 and it was all for clothing.  You will need to input in the clothing category = -59 + -62+ -12

VARIANCE - This column will automatically update for you as you fill in the budget and actual column.  Also, it will automatically roll over from month to month so you never have to do a thing!  You will always know how much over or under you are in each category from month to month.

I know their are a lot of free online tools that you could jump right into at this point. If you feel confident and want to use those instead, go ahead. However, I would like to encourage everyone to start with an ole fashion Excel Spreadsheet like I did.  It will be a little more work in the beginning, but it will force you to be truly aware of where you money is going. Half the battle of budgeting isn't about how much you are spending, but acknowledging how much you are spending and realizing the  truth about your spending habits.  Doing it the ole fashion way will force you to really look at each transaction and see bit by bit where your money is going. Try this for the first 6 months and then if you want to break away to another tool, feel free....

Tighten your wallet AND your belt. Eat healthy and save.

One of the things I found very frustrating during my bout of trying to climb out of debt was the grocery store expense.  I have always been what I consider, a healthy eater.  I'm not an extremist. I'm certainly no vegan, nor do I demand everything be purely organic, and I don't make everything from scratch. I do however, believe in moderation, the four food groups, and a colorful plate.  Do you know how frustrating it is to save money at the grocery store AND try to be healthy?   Why is it that the processed food, junk food, and pretty much "crap" is all so cheap?? All the while, the healthy, fresh, and pure food is soooooo pricey. No wonder America has an obesity problem!  Anyway, I digress....

After 5 years of learning to tighten my budget in the grocery sector of my life, I learned quite a few things.  I have managed to go from Ramon noodles and PB&J, to a healthy collection of edibles. I would like to give you a few tips on your grocery store adventures and you might be surprised at the money you can actually save! Some are very obvious simple tips we all know, yet forget from time to time and some are more can be little more time consuming and for the real dedicated!

• Always make a list before you go - This will help keep you from splurging on items you didn't really need or want to begin with
• Never go on an empty stomach - Being hungry will make EVERYTHING in the store look appetizing and before you know it, your cart has enough to feed a family of 12 for the next 2 weeks!
• Stocking Day should be shopping day - Find out when your store stocks their shelves. You will have a better selection to chose from and the items you purchase will last longer.
•  Check your supply on hand first - This can go along with making a list, but take a quick glance at what you already have so you don't buy unnecessary items.  It stinks to come home with items you already have in the fridge and pantry.
• Plan meals - Think about the week ahead and plan a few meals.  This way you have the ingredients on hand when its time to cook and you don't have to make any last minute trips to the store.
• Coupon-ers BEWARE - When used in the right way, these can be awesome! However, don't feel the need to use them on products you never intended to buy just because you will save a little. In the end you are spending more.
• Coupons can be GOOD - There is growing popularity in the use of coupons and I myself am still mastering the art. This is the best thing I have learned in just the past year thanks to a friend guiding me to the website of Southernsavers.com.  I will write more about this later.  It is a fabulous reference that will teach you the art of couponing.
• Break away from Name Brands - Brand loyalty can be a good thing, but try some store or generic brands.  They can be less expensive and just as good.

*I have many more tips to save, but don't want to OD on my first post about food. :)

Tuesday is my grocery store day. My local store puts out a lot of fresh produce on Tuesday AND discounts a lot of items they need to clear off the shelf that are nearing expiration dates. Here was my trip today.

  

 Total = $107.35


Actual Paid = $62.79

Saved 42%

How did I do this?

1) I made a list of what I needed first. My list included no NAME BRANDS or specific items. i.e. I wrote down  "milk and cereal", NOT "Mayfield and Cheerios".
2) I went to my trusty southernsavers.com.
3) I compared my list to what was listed as a deal from the website above. If there was a match and I was willing to take the deal item, I added the specific item to my list.
4) I pulled only the coupons that fit these items. I have a BIG stash of coupons.
5) For any additional items that were on my list, yet there were no deals or coupons, I kept them on my list anyway.  i.e. Bananas weren't on sale and there were no matching coupons, but they are so good for you and pretty inexpensive anyway. A weekly must-have for me.
 6) I double checked my grocery budget for the week to remind myself what I was allowed to spend.

7) I went to the store, followed my list, and came home with a thicker wallet and a healthier pantry for the week ahead.

As you can see I managed to snag up ALL FOUR food groups and get some stuff for my cat and toiletries!  Bonus! 

HAPPY FIRST DAY OF SPRING!  Now, what do I want for lunch......

Be frugal, NOT cheap!

As I write about encouraging everyone to be wiser with their money and make sure you have good spending habits, I realize I also need to let everyone know that this does not mean being cheap! As you try to save a little money here and there, please always remember I'm encouraging you to be frugal, not cheap.  Here are some examples showing the difference between the two.

-The Frugal will always tip on the FULL amount, even if using coupons or discounted pricing. The Cheap may not tip at all.

-The Frugal will offer to bring dessert or appetizer when being offered a free meal at someone's house. The Cheap will continuously mooch off of free meals sent their way without ever returning the favor.

-The Frugal will still buy quality products even though they cost a little more, because they last and will save them money in the long run. The Cheap will by inexpensive products that will fall apart  fast and have to be replaced or maintained more often, resulting in higher costs.

-The Frugal will welcome the opportunity to participate in free festivals or services, but remember to leave a little in the donation plate or even volunteer from time to time. The Cheap will show up every time, take part in ever free offering sent their way, and still complain about what they didn't like about it.

-The Frugal will negotiate a better price. The Cheap will whine, complain, and pitch a fit if they don't get the price they expect.

-The Frugal will always say thank you.  The Cheap..... well.....I think you get my point now.

 If you are acting in a cheap way in order to save money, you are only hurting yourself and possibly others. The world needs to act in a more frugal way for sure, but we need LESS cheap people as well. Challenge yourself in the coming days and weeks ahead to think twice about each time you are making a money saving decision. Decide if you are being cheap or frugal.  Go for frugal every time.  I promise it will pay off in the long run.  It will better your pocketbook and give you priceless moments in life!

Budgeting. Make it a Habit

Budgeting should be one of your automatic habits incorporated into your everyday life. If it is not already, now is the time to make it happen. Why? They say "money makes the world go round", and if that is true, we should be ever conscientious about where our own money is going. Make your money make your own world go round by watching where it is going...budgeting. Don't let it control you, but rather you control it!

Starting a new positive habit can be just as hard as letting go of a bad one. For those of you that are trying to start this process for the first time, or trying for the 5th or 6th time due to loss of motivation, distractions,etc; remember there are steps that can save you from failure. It's just like any promise you make yourself.  "I'm going to eat healthier" "I'm going to exercise more." "I'm going to get back in control of my money and budget better!" When trying to make lifestyle changes, there is the possibility of losing motivation down the road and even failure. Follow these tips to aid you in successful budgeting and making it a new habit!

1. Write it down - Write down why you are making this a new goal for yourself. What are the positives to you creating this new habit, and what are the negatives you are trying to avoid. Writing it down will make it more real and force you to be honest with yourself. 
2. Find an accountability partner - This could be a spouse, a friend, a therapist, or even a financial adviser. I'm not saying you have to share your most private details about your money, but if you have someone that knows you are trying to make this a new habit, they can cheer you on from the sidelines and help you to make sure your keeping at it.
3. Baby steps - Remember Rome wasn't built in a day! Trying to adopt a new habit can be overwhelming. Don't set yourself up for failure by trying too much at once. New runners don't try to step out onto the road and run a marathon on day one, and you shouldn't have to feel the need to save $5000 in a week. Set yourself smaller short term goals and when you are successful, build from that!
4. Remove temptation - Look at your history. The one you hopefully created from following my last post and decide where your weaknesses lie.  Do you take out too much cash from the ATM? Stop going to the ATM. Do you swipe your credit card too easy and then cant pay the balance off each month? Hide your credit card in a drawer at home
5. Be consistent - The more you do something, the more quickly it will become a habit.   For the first thirty days, do something to help you be aware of your budget and spending habits. You don't have to spend an hour crunching numbers, but do something daily to help make budgeting more of an automatic part of your routine.For example, set a daily reminder on your phone and check your bank account or credit card balances.
6. All relationships need a little "Q.T." (quality time)- This may sound silly, but you are in fact forming a new relationship in your life.  Just like our relationships with people, our relationships with our habits need a little quality time in order to help them grow and become stronger. Set yourself a recurring date to sit down and have some uninterpreted, one on one time with your budget. This is your time to reflect on where you have been spending and savings, recognize your failures and achievements, and see where you need to grow and improve. For me, I set aside the 1st and the 15th of each month and give myself an hour. 
   
7. Give yourself some wiggle room - Remember no one's perfect, so allow yourself to make some mistakes.   Your budget isn't ever going to be just right and it can be very difficult to start keeping up with every single penny. At the start of each quarter I look at my budget and see where I'm overspending. Instead of getting upset about where I have failed, I look at it as a chance to start over and try again, and see if I need to adjust my budget accordingly.

Good luck and get going!

Happy St Patricks Day!

Drafting your budget.

In my last post regarding "Money Matters" I challenged you to sit down and look at your past three months of financial records. If you have completed this step, then WAY TO GO! You are now ready to move on to the next step, creating your budget. If you have not looked back at your history I would encourage you STOP and read my last post before going any further.

Understanding what your history is telling you
Now that you have in front of you your financial history for the past three months, let's break it all down so we can build it back up and better your future!   I made a sample sheet for you in order to help you follow along. Don't worry, this isn't MY actual numbers for my life. I'm not ready to get THAT personal :). But I do want my readers to be able to compare their work to something else. I did base the categories a little on my life. I'm single so I don't have a dual income in my house and I have no children to feed either so you wont see any line items for diapers or soccer camp. Ive tried to make this pretty basic so more readers can follow.  To make this even more basic, all of my numbers  numbers are rounded to the nearest 10 dollars. Your history, if at all possible, should be down to the penny if you can get it there.

 The first three columns are my sample totals for the past three months; Feb, Jan, and December.  In each column you should add your income and then subtract your expenses. This is how much money you have left yourself at the end of each month. As you can see from my example, each month's expenses are higher that the income. Nothing is left? The first column was over by $250 and look at the last column at $1102 over! That was December!! This is a perfect example of a history that is out of control and needs a change. If you history shows you have money left over, then way to go, but I prefer you not have money left over either. We need to get income to = expenses. How?

Because we are not robots and we don't have the exact same routine of spending and earning every day, week or month, we need to get a better idea of about how much we spend on average each month.  If we can figure this average we can budget this new amount into each line item to help us better prepare for those rare months. For instance, you can see this sample has a much higher expense in the "gifts" category in December. $0 in January and February, then $350 in December.  I personally don't spend the exact same amount of money on gifts for people each month, but when the Holidays roll around, BOOM, the expenses are out of control.  Think about other expenses you have that don't come around every month; your car tag expense, the 6 month dentist visit, buying school supplies at the start of the year, etc. I like to average my expenses across a 12 month year so I don't have to try and do the math each month for those expenses that aren't as common.  See below...

 It may seem basic, but add up the 3 months for each row and divide it by three. This average you have calculated is the amount you typically spend over the course of the year each month. Based on this average expense, you know should have a better idea of how much you actually need to prepare yourself to save on a monthly basis for the months ahead so you are prepared for those rare annual expenses. For instance, the gifts. If on average I spend $117, then I need to budget and save $117. I wont spend that every month, but when the Holidays come around, I will be ready. Keep in mind that 3 months may not be enough of a history for all categories. You may have to continue to monitor your spending over the next 3 - 6 months to get a better "average" for some categories and adjust your budget as necessary.  So you have your averages. Now what?

For those that have been over spending
Now you have to look at your past and see how to set your budget for the future so you stop this over spending. You have got to get your income to equal your expenses. That is right, EQUAL. If you are looking at a history where you are over spending,  you need to go line item by line item to see where you need to either A) make more money under income or B) cut spending in your expenses.

Here's some questions to ask yourself to get your started.

1) Am I spending too much in a category?
2) Is it possible for me to cut back?
3) If I budget myself $xx.xx, will I be prepared for the unexpected?
4) Am I missing any categories?


For those of you that always have money left over
If you have money left over then you are doing very well and already on the right track. However, when making a budget I never recommend to anticipate having money left over. Again, I said to make your income = expenses.   Since you have money left over, is there a line item where you can up your budget?  Is there a new category you should put into your budget? Here are some thoughts?

1) Do you have a category for Emergencies?
2) Do you have a category for Retirement?
2) What about savings for goals down the road that may come more than a year from now such as a child's college fund, a new car, or a house renovation?


In both circumstances list above, this is where things will start to get personal and very REAL.  I can't tell you how much money you should earn, or save, or spend on every little thing in your life in order to make your income = expense. However, I do hope that you do your best to try to budget yourself appropriately so that you can get there. So have at it, dig deep, get personal and real and honest with yourself (and anyone else involved in the household's finances) and set your numbers. Based on what you have spent in the past and what you should realistically spend in the future, find those numbers to make your INCOME=EXPENSES.

Nothing you do during this budgeting draft is permanent. You can continue to make changes as you go and I hope to continue to encourage you and offer advice as you work through this process. 

My next post on "Money Matters" will be gearing you away from all this manual addition and (zzzzzzzzzzzzzzz.....) Excel spreadsheets. I'm going to show you some user friendly websites that will begin to make this process soooooooo much easier! 

But first, well.... I already have a "Money Doesn't Matter" post all geared up and ready to go out tomorrow!


 

Budgeting. Learning from our past, before we move forward.

In my last budgeting post, http://livemoreonless.blogspot.com/2012/03/living-on-budget.html, I talked about why it's important. I gave my personal testimony of how it has affected my life and gave a very brief intro on how to get started for yourself. Feel free to go back and read it if you have not. This newer post will guide you in more detail on how to get your budget going.


Budget? But where do I begin?
Have no fear. It really isn't that hard. The hardest part is to take this first step. I want to disclose up front that I have no PHD in finance. I'm not claiming to be a know-it-all. I just want to share some fundamentals that have helped me through the years. Perhaps if this is too elementary for you, it may be a nice reminder for what you already know or perhaps give you new ideas. If this post seems too simple, I hope that you will be patient in knowing I have even more to share in the future. Oh, I'm going to open up and dissect your budgets and hopefully enhance them with some of my personal saving secrets. But first, for our new comers or those that already know how to budget that might need a fresh start, it's time to take a look into our past.....

Step 1  - Gather your past records. 

The first thing I encourage everyone to do in order to budget for your future is take a look at your past. Start by pulling your records for at least the last three months. Gather everything you can including bank account statements, credit card statements, and any cash payments for which you can remember that you may not have kept an actual paper receipt (baby sitters fees, lunch at McDonalds last week, etc.)

Step 2 - It's time to get real
Once you have these items in front of you its time to take a look at where your money has been going. This may take some time. Be thorough and don't cheat. Prepare yourself for what you are about to find and be as honest as you can. I'm serious. Be really honest no matter how surprised or embarrassed you are at what you have been spending and where.  The only way to get back in control is to be be honest about where you may have lost control, then accept it, and now make the necessary changes to move forward. Remember, no one is perfect and we all have our weaknesses.  Recognize your flaws as a part of who you are and work on them daily to continue to grow into the better and unique individual you are.

Step 3 - Income and Expenses
Your records will show you where you money is coming in and where you money is going out. Your ultimate goal is make sure your outbound money is ALWAYS less than the inbound. Sounds pretty elementary right? Take a quick glance at yours.   Are you spending more than you are saving? If you are saving more than you are spending, can you save more? Lets take a closer look at exactly where you are earning and spending.

Step 4 - Building categories for your income and expenses.
 Keep in mind everyone's lifestyles are different. A 17 year old will not have the same income or expenses as a 45 year old married individual with three children. That being said, mine may be different than yours. I will do my best to include as many examples as possible, but only you know the details of where your money is going now or may go in the future.  Use my sample picture below as a guide to get you started on categories for yourself.  Take all, and I mean ALL, of your income and expenses you see in the records you have gathered in front of you and assign each one to a category. Keep a running total as you go for each category.

Now add up your total income. Add up your total expenses. Which one is greater?

Congratulations -  No matter how proud or ashamed you are at how much money you are spending or saving in each category, you have taken the first step toward regaining control of your money.
What you have in front of you is your reality for the past several months. Now it's time to look forward to the future months and decide where you want to be in each of these categories.

We have looked back. Next, we will be looking forward.

"A penny saved is a penny earned." - Benjamin Franklin

Living on a Budget

The first step to living on less is learning to live on a budget. Actually, no matter how much money you make, I would advise everyone to budget. I was fortunate enough to have a father that taught me at a very early age how to budget my money. I can remember when I went off to college, he gave me an allowance accompanied with a detailed Excel spreadsheet. This spreadsheet explained to me in detail the amount of money he gave me each month and where he expected me to spend it. Any more money I needed or wanted would be up to me. This spreadsheet outlined the total sum of my income and broke down the total amount into several categories; rent, utilities, groceries, gas, and so forth. I knew each month where my money should be going.  I then enhanced this budget and met with my father to ask for help with an even more detailed system of how to budget my money.  For years I lived off of a spreadsheet that broke down my income and expenditures. I kept track of my expenses. It was at times cumbersome and I did feel a little dorky, but I always knew not just how much money I had each month, but I also knew where that money was going.When it came time for me to go on a trip or buy clothing, I could look at my spreadsheet and see if I had enough set aside. If I wanted something big I would create a new category in my little spreadsheet and figure out how much money I needed to save. I never went to the ATM to check my total balance. That could have been misleading. I would go to my spreadsheet and check individual balances for each category I had set up. Basically I had a bunch of mini-accounts that I had made up to total my true bank account.  

I had a system. It worked. I graduated college, got a "real job". My system still worked. I made more money and I got a raise. My system still worked. I got another job and another raise. My system....stopped?  I'm not sure why, but it did. I guess I was making so much money, I didn't think I needed it anymore.

When I lost my job in 2007 my income was cut off. My expenses however, did not stop. For the three month I was unemployed and I had no income, I foolishly kept my expenses the same. I was living so well that I had stopped doing the thing I was taught so young. I had stopped budgeting. I kept spending even though I stopped earning.  My first lesson learned during my journey of living more and less spending, was ...

ALWAYS BUDGET - NO MATTER HOW MUCH MONEY YOU EARN, YOU CAN NEVER BE TOO PREPARED FOR THE WORST.

Today's technology has gifted us with more than just Excel to help us learn how to budget our money. There are FREE tools out there that practically do the work for you each month. All you have to do is get started.

The first thing I did when I got in my pickle was to start up my old habit. I opened my laptop, kicked up Excel and started a spreadsheet. It was title "My budget". I looked back at my past several months of expenditures and was shocked to find out where I had been spending my money. How could I have been so foolish? I had been spending as though I was still earning!  As I set up my new budget to match my new income, I found I was in for a big lifestyle change. Nevertheless, this was the first step I took to learning how to live more on less.

I will continue to post more on how to budget properly and will be happy to answer any questions you may have. Until the next post, you can go get started by pulling your records. Look at credit card statements, bank statements, and anything else you use to pay for things. Look back, very closely at where your money is going. Try to put everything into a category. See how much you are earning and how much you are spending. Add it all up. It may take some time, but I promise it's worth it. Make a choice and get back in control!

Here are some categories to get you started.

Income
 - Paycheck
 - Bonuses
 - Interest
 -Anything else (Babysitting, Rent from a roommate, dog walking)

Expenses
- Mortgage/Rent
- Utilities
-Monthly dues
- Home or Renters Insurance
-Car Payment
-Car Maintenance
-Gas
-Groceries
- Dining Out
-Entertainment
-Pets
-Clothing
-Debt (Credit Card, Student Loans)
-Vacation
-Emergency Saving (Yes you should have a category for this!)

In my next post I will give you a sample template from Excel you can use to get your started. I will also share user friendly websites that do most of the work for you. Happy Budgeting, Better Living!