Taking A Budget From Bad Word To Blessing, Part V

[Jenifer Madson]

The final step in our budgeting process is to take another look at your expenses, and examine how to restructure them to free up more money.

Let me first acknowledge the difficulty you might face in letting go of creature comforts you've come to depend on. There is great freedom in removing things that are an empty means to fulfillment, so this is a good time to outline or remind yourself of all the free alternatives that exist for meeting your needs.

Take A Minute:
What are some of the ways you can decrease your expenses?
Some suggestions:
• Drop your landline, only use a cell phone
• Make sure your cell phone plan meets your needs
• Be more strategic about groceries - go once a week, and go with a list and coupons
• Eat out for special occasions, not for convenience
• Stop going to the ATM
• Plan entertainment for special events, not as a diversion
• Put limits on gift spending
• Review your cable bill for opportunities to save
• Program your thermostat for more efficient usage
• Buy clothing on sale

Make A Minute:
Go through each of the expenses you've listed in your budget, and identify one way you can reduce or eliminate each expense, and by how much. Then add up your savings.

The extra money you "find" can do a lot for you—it might pay for the vacation you've yearned for, or be the systematic retirement savings you were looking for. Don't look at these expense adjustments in terms of what's going away; look at the financial freedom those choices bring you, and focus on the excitement that comes with that. Whatever you do, keep visiting your budget information on a regular basis, so that you're prepared to handle the shifts that your life brings to it.