07 January 2015

Old Fashioned Budgeting Saves Real Money


This is the year of saving so most of the Wednesday Tip of the Day emails this year will be focussed on saving and that includes budgeting.

There are a gazillion different ways to budget. If you are struggling, keep trying until you find a method that works for you. Me, I like the old fashioned paper spending plan and when Disaster Struck I went back to Envelope Budgeting, just like Annette does.  It stopped over-spending, ensured the bills were paid and paid on time and kept my sanity.

If you are looking for an easy, basic way to budget this may well work for you.

Old Fashioned Budgeting Saves Real Money

I recently went back to the age old system of withdrawing my total expenditure and keeping it in envelopes at home for petrol, food and my budgeted 'general expenses'. On pay day, whatever is in my wallet and in the envelopes, gets put into the savings jar and it is surprising to see how much money is left over.

I have found this to be an excellent saver with the recent drop in petrol as I have withdrawn my normal budgeted amount that was allocated while the price was higher. Last month I saved $30 on the petrol alone and this month with pay day still two weeks away there is an extra $150 to spare (after taking away my normal budget spending).

You just need to make sure that you put away your cards (both debit and credit) with the cash that you have set aside so you are not tempted to make any extra purchases or withdrawals. It stops you making impulse purchases and encourages you to always check what is in your wallet before you spend as if there is no money, you can't make impulse purchases which always used to eat into my budget even though if I did make a purchase, it wouldn't be any more than $20.

I also only take with me the amount that I am prepared to spend when doing the grocery shopping which means that there is only room for the necessities because I am aware that I can't cover the difference of the bill to what is in my wallet with my card.
Contributed by Annette



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