Want to get ahead financially? All you have to do is spend less than you earn. It sounds simple, but if living within a budget were easy, we would all be happily watching our bank balances climb rather than wondering how we were going to pay our bills this month. The challenge is being willing to cut back where you can and resisting the urge to spend when you don’t have to.
Any financial advisor will tell you that the first step to creating a budget is to write down everything you spend in a month. No fancy software is require – just a pen and a calculator. Download the Borrow Smart Budget Worksheet to get you started. Compare your spending with your income and find areas where you might be able to cut back in order to live within your means.
| FIVE QUICK TIPS FOR CUTTING BACK ON SPENDING |
| KEEP CASH FOR EXTRAS, Dining out and other entertainment spending can add up fast. Set a weekly or monthly budget for such expenses and set those dollars aside in cash. When the cash runs out, just say no to social events that will force you to spend. |
| BUY USED, Whether you are buying a book, a dress or a car, choosing a quality used item can save you a great deal. |
| BUY GENERIC, Check for grocery store brands that cost less than their brand counterpart, especially items that you buy often. |
| ELIMINATE MONTHLY BILLS, The thought of cutting out cable television, Internet or one of the other household "essentials" you've gotten used to might sound drastic. But cutting out a monthly bill or two can make a huge difference in your budget. |
| USE YOUR CAR LESS, Cut back on gas and maintenance costs by consolidating errands, biking to work and staying close to home when possible. |