Creating a Workable Budget

The cost of living has risen drastically over the past few months and many are struggling because of it. With the price of gas at $4.00+/- a gallon, even the thought of just paying to get to work overwhelms some people. Now more than ever, people need to think about creating a budget for their home expenses. ...

A budget needs to be a work in process if it is to be successful. It also needs be set up with realistic goals. If you create a budget for every penny that you make and you overspend in one area then you will never be able to stay within your budget plan. Here are just a few suggestions to help you set up a budget for your life:

1. Keep it simple—don’t feel like you have to know the exact amount of everything. For example, if your electric bill is normally $92.56 then base your budget on $100.00.
2. Start with a list of what your current spending habits are. This is called your “reality check” budget as it will show you exactly where your money is currently going and can show you areas that you can “trim” some savings.
3. Be honest with yourself. Everyone has spending habits that could be improved. If your “reality check budget” shows that you have more money going out monthly than you have coming in then you need to make some serious changes. How many times a week do you stop for coffee or swing into a store to pick up one item and end of picking up a lot more than just that one needed item.
4. Create your new budget with goals of what you can spend in each category (i.e. Groceries, gas, “fun money”, etc.)
5. Make lists for grocery shopping and staple shopping and stick to them. Retailers design their stores to make you compulsively spend. If you go in with a list and stick to that list you will get out of the store spending less.
6. Be determined to make your budget work and yet flexible to adjust your budget as your priorities change (i.e. Daycare versus summer camp expenses)

Creating a workable budget is one of the most important things you can do when the cost of living continues to rise. Knowing where and how you are spending your money will hopefully help you make the right choices when it comes to your spending habits. It’s never easy to change spending habits but at times it’s very necessary especially when the cost of basic living essentials continues to rise.

If you would like assistance in creating a workable budget please feel free to contact New England Credit Consultants at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or by phone at 207-321-9111.