How to Do Budgeting to Save Money

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By WordWrangler
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Budgeting

Learning budgeting and putting it into practice is a great way to save money. It's sometimes hard to make ends meet these days, since the prices of so many basic needs seem to rise every week. For those feeling the pinch, budgeting can help you save money. Take the time now to look at where all that money is going and create a budget plan to stretch it a bit further.

Difficulty: Easy

Instructions

Things You'll Need:

Paper
Pencil
Your Checkbook
Calculator

Step 1

Make a list of where all monies are spent each month. List each of the utilities paid and each one's average monthly cost. This will include such items as electricity, water, telephone, cell phone, TV cable or satellite dish and Internet provider. An easy way to remember them all is to go through checkbook or online banking pay-outs and create a list from there.
Step 2

Add insurance costs such as homeowners, auto and health insurance to the budgeting list. If some of these items are paid quarterly or annually, break them down to a monthly average. List the mortgage payment, any vehicle leases, equity line payments and the like.
Step 3

Estimate how much is spent each month for food, gasoline, eating out, school lunches, hair cuts, clothes and any other items that are regularly purchased. Include these items individually on the budgeting list.
Step 4

Carefully examine each item on the budgeting list. Spouses should discuss each expenditure and decide if there are places where spending can be lowered. For example, taking shorter showers obviously can lessen the water bill but it can also help lower the electric bill by using less hot water.
Step 5

Study insurance costs and discuss them with an insurance agent. It may be possible to raise deductibles and lower premiums. Since interest rates are at very low levels right now, call a banker to determine if refinancing the home might be an option. Simply turning off the TV when no one is watching can save electricity.
Step 6

Plan ahead and make your list for budgeting as complete and thorough as possible. Review and update it once a month.