Do you need to save some money for a big purchase or recover from a large bill you just paid? Perhaps you just want to gain better control of your spending and get into serious frugal living. Having a frugal No Splurge Month could be the answer for you.
A frugal No Splurge Month is when you designate a month where you won’t spend any money on anything that isn’t absolutely essential. There is no spending money on anything you don’t legitimately need. When done as a family, this is a great way to save some money and learn more about what you can really live without.
Before you decide to stop spending unnecessary money, you will have to make a plan. Otherwise, old habits will probably take over and your frugal No Splurge Month can easily be derailed. Determine that you WANT to get into frugal living.
First of all, pick a month that will realistically work for you and your family to not splurge. You’ll probably want to avoid months where you are celebrating a major holiday or taking a vacation. Also, plan it for a month when you won’t have unexpected genuine needs, like when the kids go back to school.
When you have your month selected, plan how you will handle specific situations that will arise during that month. For example, if there is a child’s birthday party in the month you’re deciding not to splurge, decide ahead of time how you will handle that. That will help you stick to your no-splurging plan.
It might also help for you to set a budget for the month. Better budgeting will help you stay focused in your spending. You may want to put away your credit cards during this time too. Having your credit cards close at hand makes it easy to follow to urge to splurge when it strikes.
In your frugal living planning, be realistic while creating your better budgeting plan. Acknowledge that unexpected yet legitimate expenses may arise, no matter how well you plan. You may want to set aside a certain amount cash to cover those. You can still keep costs down by putting only a small amount of money aside, and any surprise expenses have to come from that amount.
Before you start your frugal No Splurge Month, it’s essential to talk about it as a family. With everyone on board, it will be easier to avoid needless spending. Decide as a family what you are allowed to spend money on. This may be a good time to talk about the difference between needs and wants. If you explain to everyone what you’re doing, and the purpose behind it, they will be more helpful and not ask for things that you haven’t agreed on beforehand. Kids may even view a frugal No Splurge Month as a fun challenge and hold you accountable for your own money spending.
Having a frugal No Splurge Month is a great way to get spending money under control and find out what you really can live without. By planning ahead and involving the whole family, frugal living can be a success for everyone involved.
How to Efficiently Deal With a Financial Emergency
It happens to everyone at least once — just when you think you are on top of your finances and your budget is flowing smoothly, disaster strikes. The size of the disaster may not be huge; it could just be a blown tire during your tightly budgeted vacation. Or it could be as big as the loss of a job, a house fire or a disabling health condition. Whatever your financial emergency, you can get through it if you have planned ahead and prioritize.
A big part of making your budget is saving for the unexpected. Most financial experts agree that everyone should have an emergency fund of at least one month’s expenses. Ideally you should have savings and investments that could support you for six months or more.
Even if you are well set with savings to take care of financial emergencies, certain considerations will come into play.
1. Redo your budget – While the cost to replace a blown tire may be covered in your ongoing car budget, you might find yourself spending an unexpected night in a motel while waiting for the tire shop to open. Or the kitchen fire that is covered by insurance may put a jump on your plans to renovate, requiring some shifting of budgeted savings. If a sudden loss of income has occurred, the budget may have to be drastically redone to meet basic needs.
2. Negotiate payments – Call lenders and utility companies and see if a modification is available. Sometimes loans have built-in deferment options that could be available to you, or perhaps they can refinance to lower or put off a couple of payments.
If loan holders aren’t at the point where they are likely to sue you, you may just have to ignore them for a couple of months. Utility companies will often take one or two bills and spread them out over the next year. This would help if it’s a short-term crisis, but may only make things worse a few months down the road if nothing has changed.
3. Ask for help – Consider getting any available help from the state or charities. Perhaps a new disability makes you eligible for Social Security or even food stamps. You can usually find help with groceries and utility payments at local food banks, social service organizations and churches.
4. Prioritize – What expenses are most important? Always consider the roof over your head and the food on your table first. If that means your credit cards don’t get paid, so be it.
5. Cut expenses down to the bare minimum – You do not need cable TV to survive, so it can go. Eliminate extra phone lines, leisure activities, and non-work related internet service. Cancel subscriptions and memberships that are about to renew or have monthly payments. Be careful of the legal implications of breaking any associated contracts, though.
6. Earn extra money – You may not be able to take on an extra job in your current situation, but chances are you have things in your house you could sell. Try Craigslist or eBay, or just have a big rummage sale. You may be surprised at how much money you could make.
These are a few of the ways you can make it through a financial emergency or flat-out disaster. It may seem impossible, but many others have walked in the same shoes before and come out on the other end stronger and wiser for it. You can make it through.
Families need to make money stretch as far as it possibly can. This can mean doing without unnecessary purchases, or budgeting for monthly expenses. If you find yourself struggling each month or living paycheck to paycheck, it may be time to give your family a money makeover. Giving your family a money makeover means finding the best deals for your money to make it stretch further. Here are some tips that will yield an effective money makeover.
* Find better deals on insurance policies. If you feel like you are paying too much for car insurance or health insurance, do some comparison shopping. Oftentimes people do not think that they can save, so they do not look for better deals.
Being comfortable with your current insurance agent is also a factor as to why people do not shop elsewhere. If you find a better deal with another insurance company, check with your current insurance holder and see if they will match the price. In a competitive market such as today’s, people are more likely to match prices to keep the business.
* If you do not already have a savings plan, it is time to start thinking about one. It’s a good idea to have a savings account that will sustain the household for three to six months if the unthinkable were to happen. You can build up your savings over time by putting a little of your paycheck away each pay period. Once you have your emergency fund, then you can focus on building upon that savings even more.
* Having a retirement plan is important because it is not feasible to work until death. Social security programs are running out of funds and may not be around when it comes time for you to retire. This is why it is especially important to plan ahead. Look into IRAs or other interest-yielding accounts to build up enough money to retire on. The sooner you start building up your retirement, the better.
You and your family stand to gain a lot by giving yourselves a money makeover. By shopping around for better insurance policies and building up a savings account for retirement and family emergencies, you are helping to ensure that your family is prepared for the future. Implement money-saving methods where possible and watch your nest egg grow.
Most people live paycheck to paycheck, and spend what they want whenever they want. But if you keep up that pattern long enough, you’ll soon discover that the money runs out before you’ve paid all the bills, and there is never any left over for special purchases or holidays. To get control of your household spending and start saving you will need to set up a household budget.
The thought of having to stick to a budget might make you cringe. It sounds restrictive and boring. But if you are serious about creating wealth, a budget can actually give you freedom. You will have control over your finances, know where your money is going, and have a plan to reach your financial goals. Not spending on a few things that you can do without right now means you will be able to spend on larger, more important purchases in the future.
Here are some easy household budgeting strategies you can use to get started.
1. Find out how much you earn.
The way you’re paid can determine how you budget your money each month. If you’re paid on a weekly basis, you can calculate your budget based on four paychecks a month. That means you’ll have four extra checks throughout the year to help with extra expenses. If you’re paid bi-weekly, you can calculate your budget based on two paychecks a month, and have two extra checks throughout the year. If you’re paid monthly, calculate your budget based on the monthly amount. You won’t have extra checks throughout the year, so you’ll need to be careful in budgeting for the extras. For those who aren’t paid regularly, figure out your annual income and divide it by 12 to determine your monthly income.
2. Track your expenses.
Your fixed expenses will be easy to figure out. These are the items that stay the same from month to month, such as your mortgage, car payment, and the like. Your other expenses can be trickier to calculate. To find out how much you really spend in a month, carry a notebook with you and write down everything you spend for the next 30 days. This will tell you how much money you’re spending, and where it is all going.
3. Figure out the difference.
Now, find out the difference between what you spend and what you earn each month. If you have a surplus, a portion of that should be budgeted for investments or savings. If you have a shortage, you have one of two choices to solve your budget woes: lower your expenses or increase your income. You may even want to do both.
4. Lower your expenses.
Lowering your expenses is the most obvious way to solve a discrepancy between your income and your spending. Simple changes made over time, such as renting a video instead of going to the movie theatre, can add up to big dollars in your bank account. Others may be lifestyle changes, such as giving up one car and taking public transportation instead.
Taking control of your finances by setting up a household budget is an important first step to creating wealth. As you begin to make wise decisions about where your money goes, over time you will find opportunities to spend less and have more money to invest.
Donate Old or No Longer Used Items to Help Keep Things in Order
When the time comes to clean out and reorganize the house, there are always items you find that you just don’t use anymore. Some things may even be gifts that you have never even taken out of the original package. As long as the items are still in good shape, there are many ways they can find a new home. Many people do not want to bother with a yard sale, so they prefer to donate the items to a charity.
Many items can be donated to area thrift or Salvation Army stores. Quite often they will give you a receipt that will allow you to take it as a tax write-off. It is probably best to call and check with them as to their drop-off policies. Some places only take donations on certain days or hours.
Another option is to donate carefully used toys, books and clothes to women’s shelters. Many times the families staying there have had to leave their homes with just what they were wearing. A few things for them to have while they are there can be a great comfort.
There are other charities that also take clothes and household goods. Some, including veterans’ organizations like Purple Heart and Vietnam Vets, and other groups like Easter Seals, will actually pick up your donations at your home. If you call them, they have set pickup schedules for the neighborhoods in your area. They have a set procedure.
Some hospitals collect books, sometimes specifically for the children’s wing. When your children outgrow their books, considering giving them away to a hospital or other charities for children.
Once you’ve donated things, you can reorganize what you have left and maximize your storage space. This is something to consider doing every few months, because things tend to accumulate. If you’re unsure about donating some things, put them away, and if you haven’t used them after a given time then you can probably go ahead and donate them.
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