The "B" Word

Sorry for the delay of “B” Word but the post below was urgent!

Budgeting is like SPF 45 sunblock, many of us need to use it, but few of us really do. Many sunbathers forego the highly-protective lotion and go for a lesser strength in hopes of getting some color. The budget is something we all like to think we follow, but many of us (some 51%) do not have any kind of budget in place and simply rely on the check register or online bank statement to keep track of expenses. An interesting study also found that income level, gender and race did not have any factor in those that skipped logging expenses. Think of a budget as a tool of necessity, the study also revealed that folks that regularly track expenses are those whom carry many loans or have had a problem with managing their expenses.

Some of us realize it is a luxury to eat out, but many engage in this common practice without really knowing how much of a financial impact it has on us. The average American eats out at least two times per week, and while the value menu may be growing in popularity, it is this statistic alone that is disturbing, not only because our waistlines are expanding faster than a cockroach startled by lights, but because this habit has a huge impact on our wallets. Look at this piece of the budget alone: the average cost of a midday meal runs around $9 according to a 2007 report, this expense alone can cost you $900/year, enough to cover air and hotel for two from LAX to New York, or pay for a nice weekend in Vegas from almost any part of the country. The cost of brown bagging it can range from $1.50-$4.50/day (depending if your bologna has a first name or not), even on the higher end for the premium meal, this will cut that eating out expense by 50%, enough to buy a month and a half’s worth of groceries for the average couple.

This is just one aspect of budget crunching, here are some other creative ways:
1. drop the landline phone
2. consider cheaper options for television or internet service
3. skip the manicure for a month or two out of the year
4. clip coupons for groceries, services, and meals
5. caulk those windows
6. can the DVR or TiVo and watch shows on hulu.com or similar
7. download the free music of the week or borrow some CD’s to rip
8. catch the matinee show at the movies (sneak in candy while there)
9. learn to change your own oil/check your vehicle’s vital fluids
10. pass on the monthly clothes shopping trip (especially if things in the closet still have tags on them!)
11. install CFL’s instead of incandescent bulbs
12. insist on generic drugs for prescriptions and OTC medications
13. don’t be a leadfoot
14. Jettison the extra fridge
15. Microwave a meal instead of using the range
16. do your own taxes or find a free tax service
17. drop the gym membership and buy free weights/exercise bands
18. visit your library instead of buying books
19. fire the gardener
20. skip the coffee/ juice bar and drink a bottled water or tap if you dare
21. pass on the expensive travel destination for a cheaper locale
22. shop around for insurance and raise deductibles when possible
23. buy water saving fixtures/flow restrictors
24. find cheaper gas
25. turn off lights when not in room
26. shop around for deals
27. turn the car off if sitting for 30 seconds or longer (you can even try this at stoplights)
28. dump the timeshare
29. do something nice instead of buying a gift
30. turn off the heater, A/C and get out of the house
31. quit smoking, gambling, drinking
32. Buy gently used items from craigslist or freecycle
33. Don’t fall victim to a scam
34. Turn off shower when lathering up
35. Reduce minutes on your mobile phone plan
36. Check your tire pressures
37. Walk to the store
38. Go to the community theater instead of the fancy, performing arts center
39. Trim that dryer vent
40. Book museums, amusement parks on special days or during promotions
41. Rent the smaller car (these days, more like the SUV, especially for local use)
42. Fly later or stay an extra day for the cheaper flight
43. Buy in bulk (especially non-perishables like batteries and toilet paper)
44. Buy an energy-efficient appliance
45. Purchase the appliance as a floor model or scratch and dent markdown
46. Shop at the alternative grocery store such as Trader Joe’s, Aldi, or Fresh & Easy
47. Get pampered at a beauty school
48. Insulate that attic
49. Dry clean at home
50. Get away from the desk and use the laptop

Yes some of these measures are extreme and not all will apply, but even applying a few can make budgeting fun and help you from throwing away money!