16 Quick Fixes for a Broken Budget
I want to show you how you can master your money without changing your spending habits
- Budget. The very word “budget” feels like the word “diet” – potentially rewarding but not much fun in the application! However, if your weight is out of control, chances are you need a diet. The same would apply to your money—if your spending is out of control, you probably need a budget, also known as a spending plan. How do you want to spend your money? Plan for it.
- Change your mindset. Take responsibility and control. Even if you have never done a budget or paid the bills before, maintain a “can-do” attitude. Don’t let yourself become overwhelmed, and don’t let fear slow you down.
- Keep a spending log for one month. Record your spending in a small notebook, in the sample Monthly Spending form, or on your smartphone. You’ll be amazed to see where your dollars go.
- Reduce expenses. Once you have done a spending log and a budget, analyze your household finances to see where you can reduce expenses. Eliminate subscriptions and memberships that you no longer need. Slow down the frequency of appointments for personal maintenance. Shop for clothes in your own closet.
- Choose your options. A budget really means, “How I choose to spend my money.” If you want to buy those expensive designer shoes, go ahead. Just make an off-setting choice in another part of your budget—for example, you may choose to do your own nails for a month or two, or to brown bag your lunch for a while.
- Create additional income from employment. Get a second job if necessary. Use the income from your second job to pay off credit cards, school loans, or HELOCs.
- Refinance your home mortgage to a lower rate. If you can refinance to a lower rate, you could possibly free up hundreds of dollars per month or more, which could greatly help balance your finances.
- Downsize your home. One of the fastest ways to balance a budget is to downsize to a smaller home or apartment with less overhead.
- Consider non-traditional living arrangements. If you have extra rooms, consider renting them out, or getting a roommate. Rent out your garage or vacation home.
- Optimize the return on your investments without taking on excessive risk. Many of us have too much savings in cash that provides very little interest. Consider moving some of your cash into a high quality, short-term bond fund.
- Have a fire sale. Sell unwanted clutter through online auction sites, or have an old-fashioned yard sale. Sell extraneous electronic devices, old textbooks, designer clothes, furniture, cars, baby items, etc.
- Balance volunteerism with paid work. Women are admirable for the amount of hours we give to volunteering. However, unless you are independently wealthy, keep volunteer time in balance with paid time. You need income!
- Devise creative solutions. Consider ways you can share costs with a co-workers or friends, such as sharing a business office and/or secretary if you are self-employed. Create a carpool to share transportation costs. Trade babysitting duties with other Moms to reduce childcare costs.
- Pay yourself first. You need to have an emergency fund of at least nine to twelve months’ living expenses. You might put three months’ worth into CDs and the rest into high quality short-term bond funds. Set aside the first 10 percent of everything you earn to build your emergency fund.
- Meet with a financial advisor. She may be able to provide meaningful insights and suggestions, and the first meeting is often free.
- Respect yourself more. When you respect yourself more, you take better care of yourself, your health, and your money. When you respect yourself, you become respectable.
Special Web Offer
FREE Book Chapter
Order Your Book Now
Learn how to transform your financial future with these simple steps for just $24.95
