SHOE STRING BUDGET PART ONE--FIXED EXPENSES

It’s that time of month, you are out of money but bills are still arriving in mail box. Getting control over your fixed expense is more than just writing down a list of what bills need to be paid and when. . First, list all fixed expenses, such as mortgage, home insurance, car payment, car insurance, phone, cable, credit cards, health insurance, local newspaper, etc. If money is going out each month, write it down. No amount is too small to ignore. Take a good hard look at figures. Do you really need extra movie channel, or high interest credit card? You won’t miss movie channel. Take your family to library and explore numerous current movies that are available to rent free of charge. Read magazines there, and cancel your magazine subscriptions. Transfer balances on high interest credit cards to other companies that have lower rates. Check out different long distance providers for lower rates if you dial long distance, better yet, e-mail and write letters! Get quotes from insurance companies, and switch providers for your car and home insurance, if needed. Sometimes just raising your deductible will decrease monthly payment.

Shoestring budgeting

After you have taken control over your fixed expenses, it’s time to take a look at outgoing household expenses. These include food, groceries, clothing, cleaners, entertainment, etc. Get out pen, paper, and your check book register. Average how much was spent on each of these items per month. You will be astounded at figure.

By far, most money going out will be for food and groceries. The key to saving money on groceries is to make a menu for week prior to going shopping. Get out calender, see what events are planned that week and write out meals according to time you will have available. It will save money from impulse buying, and also stop you from pulling in drive-thru because you can’t face preparing a huge meal. A good place to find great clothes is your local thrift stores. They are being bombarded by teenagers! You would not believe cool, name brand clothing you will find in these stores. Some may even have tags still on them. Just get in there and dig. Don’t buy just because it’s cheap, though. Just buy what you came in to get. December is a great month for these shops because people are donating for tax write-offs. You can also find DVD’s, CD’s, appliances, etc. at thrift shops. Thrift stores are becoming latest fad!