More Month than Money?

I figured hubby and I would be better off today than we were when we first started out. However, with the economy in the tank and the dollar dropping like a lead balloon we are back to square one. So taking into consideration that I have been down this road before I thought I would share with you my refresher course from the school of More Month than Money.

First of all BUDGET!!!

Ok so I hear the groans already but it has to be done if you want to survive this melt down. I know it seems overwhelming so let’s start at the beginning. It will take a couple of months to get in the groove of things but you will be glad you did. First step keep those receipts. I know some environmentalist are cringing at what I am about to say but it is important for you to see where the money is going so get those receipts even when you pay at the pump for gas or buy a soda in the convenient store. At the end of the month add them up. Now in month two STOP USING THE DEBIT CARD (don’t faint on me now it is just getting good.) You read correctly DO NOT use your debit card. Many people (myself included) swipe the card and never give one thought to the balance and when the bills come due I am always short. So we get allowances. Hubby and I get X amount of dollars each week for junk food and little items for when we are at work or better yet when everyone at work decides to go to lunch at the last minute. Once that money is gone well we do without until we get our allowance again. It makes us think twice before buying that soda out of the drink machine at work. If like us you have to have direct deposit to get paid then go to the bank and cash a check for just the amount of you allowance and not a penny more.

Now that you see where your money goes lets move on to the budget. I would suggest that you contact your electric company and get on budget billing. That is where they average your bill over a year and that is what you pay; some months it will be more than you use and some months it will be less than you use. But here is what it will do for you…it will give you a flat bill each month. Say the average of your yearly bill is $150 that is what you will pay each and every month. You can check with the gas company I believe they do the same thing. Look at landline phone bill plans. Do you really need the whole package? Can’t you just get an answering machine and pay $5 for caller id? If you have a cell phone do you really need a land line if so can it be just a phone line with no perks? You would be surprised at what you will save. What about your cell phone? Is your contract up for renewal? Can you get a better deal and better service elsewhere? If like me and you do not use the cell phone (seriously right now mine is in my purse and the battery is dead) how much would you benefit from a pay as you go phone? I have a simple phone it’s not the walkie talkie phone, or camera phone, can’t search the web on it nor can I listen to music. It cost me $10 a month for 50 minutes I get to keep the minutes I don’t use. But seriously do you use/need all the perks on your cell phone. I am not saying do away with your phones but think long and hard about what you really use and what all you are paying for. What about cable or satellite TV? Can you get it cheaper? What about internet can you get a better deal by switching to DSL and dropping your cable down to basic or going with satellite?

Back before direct deposit was required to get paid we would cash hubby’s check and we would divide it out among envelopes labeled rent, lights, water, food, medical, gas etc. As I got each bill I would take my envelope and go pay the bill. We were lucky enough to live in a small town where everything was close and I could easily go and pay the bills. Even when after moving to a larger town I still used this method and I would just buy money orders and mail the bills in. I had a little accordion folder that was labeled by the month that I kept my envelopes in and as I would pay the bills each month I would move the envelope to the next month and at the end of the year I would paper clip each month together and then put them in a larger envelope together and write the year on the front and file them away.

The money that was left over would go into a savings account so that when we had car trouble or the washer broke or some unexpected expense come along we would have a little bit of money. Yes were did go out and we did take vacations so not all hope is lost.

My challenge to you this month is to save those receipts.