Tips on Budget Planning and Saving Money

by David Ning · 12 comments

Budgeting will identify how you spend your money

Deciding to consolidate your debts is an excellent choice for many individuals, but making that decision is only the first step, learning how to manage your finances is the next step in ultimately becoming debt
free. Budget planning can help you identify how you spend your money and where you may be over spending. The goal in preparing a budget is to insure that your monthly expenses do not exceed your monthly income.

Below are some tips to assist you in starting off the New year on the right financial foot:

Tips on Budgeting

  1. Write down your total monthly net income. Include all sources of income such as, salary, child support, pension, etc. Next, list all your monthly expenses, including your house or rent payment, food, gas, utilities, credit card payments, etc. Then subtract your monthly expenses from your total monthly income.
  2. Look for areas where you can cut back and save some money.
  3. Use the information to set a budget for yourself. Include approximately 5% to 10% for savings.
  4. Review your budget on a monthly basis to determine how things are going. You may discover an area where your are overspending and can then adjust it accordingly.

Tips on Saving Money

  1. Cut back home energy consumption by turning off lights when you are not using them and placing an air conditioner on a timer. You can also remove unnecessary phone options to cut down costs. Contact your local utility service providers and ask about their budgeting plans and programs to help you manage these expenses.
  2. Shop at outlet or wholesale clubs. When you do shop, use lists to avoid impulse purchases.
  3. Try bringing your lunch to work instead of having to buy everyday.

Money Ning thoughts: Great advice. How many of these do you do already? I think I will implement the “list” advice for my wife so we don’t buy too much immediately.

Money Saving Tip: An incredibly effective way to save more is to reduce your monthly Internet and TV costs. Click here for the current AT&T DSL and U-VERSE promotion codes and promos and see if you can save more money every month from now on.

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{ 12 comments… read them below or add one }

Eric April 25, 2008 at 5:01 pm

I have never understood people at work going out for lunch. It seems to be a time and money sink. I eat PowerBars for lunch ;^)

In regards to energy consumption: Check all your water faucets for leaks. I had a leaky faucet, but didn’t worry about it until I got a $250 natural gas bill (I have a gas water heater). Considering I kept my house at a slightly above meat-locker temperature, I was scratching my head for a little while, but then figured out it was the faucet leaking HOT water. Fixed it and had an $80 gas bill the next month.


Mike Huang April 25, 2008 at 5:36 pm

I personally think it is difficult to shop at warehouses or outlets. They’re usually very far from home and they sell in bulk. I know you mentioned that you can split the bulk items, but it isn’t that easy :(



Kacper April 26, 2008 at 10:09 am

Recently I started bringing own lunch to work. So far I have great results – save quite some money, if you summurize for longer period of time.


Ann April 26, 2008 at 10:48 am

At one time, I was almost OCD about menu planning and grocery shopping lists. I’ve slacked off that but really need to be back in the habit again. I have a great little shopping list program on my computer that keeps a running tally of the items on my “to get” list so I know when I’m reaching my grocery shopping limit.


Asia'h Epperson April 27, 2008 at 10:34 am

My kids use to leave the lights on all the time and I’d go along behind them turning them off. No matter what punishment they received, they just couldn’t seem to “remember” to turn out the lights (and turn off the water). That is, until I started deducted money from their allowance each time they left the lights on or the water running.

Funny, they have no problem remembering now.


luz May 5, 2008 at 6:18 am

I agree with those you mentioned above because you can easily track back with your expenses for the month.


deannashea October 16, 2008 at 10:24 pm

These are all very helpful. Thanks. By the way, just wanna add up something. It is also very important that we become very keen with the costs that phone companies are charging us. Using free directory assistance can help us cut off those charges. You can try 1-800-411-SAVE. It’s absolutely free. They have live and friendly agents that give out very accurate phone listings. You won’t regret trying it. You can save more than a dollar per call.. Imagine how much you can keep. Remember the number 1-800-411-7283.


Debt Consolidation Regina June 26, 2009 at 11:15 am

This is great article enlisting some of the basic points each individual should keep in mind while tracking their budget. Nowadays, there are many online personal finance tools that can help people track their daily expenses and get a better idea about their savings.


Andrew @ Financial Services November 11, 2009 at 6:19 am

Bringing your own food to work is definitely a fast cash saver (not unless work provides you with free food). Great tips, I’m sure anyone who follows these will surely see a tangible improvement on their savings.


Richard Cox June 27, 2010 at 2:51 pm

I found this article usueful especially the budgeting tips. Just to add my thoughts about the lunch thing….. I make my own lunch most days and it saves a bundle, all these little sacrifices to add up in the long run.


Dollars Not Debt January 21, 2011 at 9:02 pm

I have been following Dave Ramsey’s plan for about 2 years and I will be 100% debt free in August of 2012. House and everything. The plan works–but only if you are focused and have self-control. I will have paid off a total of $100K in the four years. I talk about my path to debt freedom in my blog.

Dollars Not Debt


Kiwikid October 11, 2012 at 2:12 pm

All well and good but comes to nought if your other half won’t come to the party. Currently medically unable to work. Get a social welfare benefit for “both” of us plus wife works part time. Anything she earns over a certain limit means that every dollar over that limit is abated 70 cents, so she ends up working for 30 cents, just not worth it. But, and this is not the first time, whenever we get into an unemployment situation she goes in denial and starts spending up large. She is planning on going overseas next year come hell or high water. If we lose the house tough sh*t! Unbelievable attitude but that’s the way it is.


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