How many times have you told your subordinates to
'budget' their time? Have you ever told your children they have to live
within their 'allowance money'? Is that 'budgeting'???
Put down your FIXED OBLIGATIONS - get that done first;
you can't even start to make a change in your 'budget', until you know what's
Don't forget those periodic costs
such as taxes; insurance, tags for the car - other items that 'pop in' just when
you don't need it.
TOTAL UP THOSE PERIODIC COSTS - THEN DIVIDE BY 12 - THIS IS WHAT YOU
MUST SET ASIDE EACH MONTH IN YOUR SAVINGS OR CHECKING ACCOUNT.
Once you've added your monthly OBLIGATIONS to those pro-rated PERIODIC
OBLIGATIONS, start examining your insurance programs - see if a bigger
'deductible' on your car insurance, might yield a better rate. Do you need that
road service? If your car is less than 5 years old, you might consider
eliminating 'road service' - older than that, hang on to it.
Is your liability coverage enormous? You can
think about reducing that liability for bodily injury and property damage just a
Do you need a land-line service? Think about
that 911 feature; how critical is it to you to have a 'fixed' house
Do you need those magazine subscriptions? I cut all of mine since
90% of them were 'on the web' anyway. I also go to my local library (I can walk to it and save gasoline costs) where they have plenty of magazines I can read through. They let me copy an article for 10 cents; can't beat that price.
Also, they have book sales 4 times a year; you can buy used books for 50 cents - it takes a little digging through the bins, but it's worth it.
Remember, the WEB is your 'machine gun' in the time of 'war' - the war to find information, and you need it quick! I use it all the time; I don't call an accountant or an attorney - I simply 'Google' my topic or needed information - rarely do I ever come up 'short', in finding what is essential for me to know.
We paid off our credit cards a year ago; now we pay
them off each month - we don't want to pay interest. When you have to use that
interest, make sure it's only for something that is imperative, and of course an
'emergency' is never something you can predict, so don't groan too loudly when
you do have to use that credit card.
Buy out of season items - this is
something I've done for years. Set up a closet just for 'gifts' and
'things' that you got on sale, and check your inventory when a sudden 'gift' is
needed, and you don't have ready cash.
Buy 'house brands' at the store; name brands are
elevated to cover their advertising costs - rarely are they truly
Ask your grand-parents for ideas; they usually have
had experience with tough times, and can give you guidance...they'll be happy to
share, I'm sure.
A recession can mean a chance to cultivate friendships; create a bond that will end up bringing you closer to your community, and finding a joy you never knew you had!Rather than 'partying' at the local pub - have a 'pub
night' at each other's homes...share the costs, and think of it as a 'private
club' - sounds better now doesn't it!