How to Make a Budget

By Joe James

Budgeting is an easy thing to do but like all easy things, it is something people have the hardest time doing. It's easy to spend money. It can go easy with a few dollars here and a few dollars there. Yet with just a few simple changes to how you live, you can save lots of money and have much better budget, which is important in this economy.

Pay only cash when you visit a super market or mall. That will help you in only buying stuff which you need. If you are using credit card, only use it to the extent that you can pay it off in a months time. Keep your card expense to the minimum. If you have more than one card, try and close the others. Keep only one card and deal only with a single lender. It's easier to track your cash and you become aware of your spending easier.

Tracking your expenses is one of the easiest way to control your cash so you can see where the money is going. Make a list of expenses you have every month. The ones that you have to pay. Not purchases you could do without- mortgage payments, utility bills, education expenses, medical insurance payments, and so on. See how much extra cash you are left with. Save 10% of it.

A great way to save money is to get rid of your car. Cars cost a lot of money with repairs, insurance, and gas. They are not cheap to own. Get rid of it and you will save a lot of money. You'll have to learn how to use public transportation and walk places but it is much more liberating. Moreover, in many cities, you can rent cars cheaply for the day if you really need to go somewhere.

Lastly try to earn residual income. The internet has opened up a Pandoras box. There are immense opportunities to earn some extra cash. Internet marketing, having your own website and earning through Adsense, selling on Ebay are some of the ideas for making money online. Whatever it is there are immense opportunities to earn money. So not only can you cut down on your expenses you can also learn to earn automated income. After all extra cash doesnt pinch?

There are many ways to trim your expenses. Budgeting is easy but it is the easiest things that are the hardest for people to do. If you budget right, you'll be able to save a lot of money and not worry if you lose your job. Budgeting can help protect you from a rainy day. You never know what could happen. - 23208

About the Author:

Joe James gives financial advice for a living. He resides in the southwest of the United States and is a retirement specialist. You can find out more information at his website on his own money story.