Saturday, October 29, 2011

The life category

As I said earlier 25% of your monthly income should be in what I call the life section. This doesn’t mean entertainment although that is part of the life section it isn’t all of it. In this section you would account for your entertainment, cable, internet, food, etc. Make sure you are not going over 25% if you can’t afford cable or going out to eat, then don’t do it. The best way to keep this on budget is to keep track of your budget for a month or more. Then look at what you can cut back on. Do you get gourmet coffee every morning? If so make your coffee at home before you leave work, you will be amazed at how much money you can save. Try quitting a vice if you have one, like smoking, or going to the bars every weekend. Make all the adjustments to your budget that you can to keep yourself at or under your 25%. Shop around for bundle deals with cable, internet, and phone lines. Make sure you get the best deal. Sometimes not having a home phone is economical. My family only has cellular phones that way we can always reach people when we need to. I haven’t had a home phone in quite some years. However you will need to ensure that you don’t go over your minutes or texts (that can cost you quite a bit of money). Make sure you do your research also when looking for cell phone plans, and cell phones. Read reviews on phones you like. Maybe your life better suits you to have an iphone, maybe it’s an android or a blackberry you should go with. Every cell phone will have different things they can do and different ways to account for your lifestyle.
When grocery shopping, make sure to create a list of the items you will need and stick to them. Never go grocery shopping when you’re hungry, that causes you to purchase items that you don’t really need. At the end of the shopping trip the cart will be filled with junk food. I always plan a weeks’ worth of meals that I will make for the week and create a list, that way it saves time from wandering down the aisles wondering what I will buy. Try to eat in as often as possible; it’s always cheaper than going out. Make a little extra dinner than you know your family will eat and save leftovers to take to work. When you run out of ideas for meals try to buy a magazine subscription to give you more ideas.
Trying to stay entertained is quite a feat if you don’t have much money. If your budget doesn’t allot for much entertainment (after all your other necessities) look into free entertainment. Take your family to the park; go for bike rides, and every once in a while go see a movie. The more exercise you and your family get the better you will feel.

1 comment:

  1. Thanks for the advice, I follow many of these rules already and it really works!