With the new year fastly approaching alot of us are looking to make those crucial new years resolutions. Among those resolutions alot of us find some of the same ‘resolutions’ as years past. Such as lose weight, save money, make more money, quit smoking etc…

Let’s take a look at the finance aspect of our resolutions. Here are few ideas to start saving some money to help you on your way to financial relief.

Well, if you’re anything like I used to be you get to the end of the month and the cupboard – or the bank account in this case – is bare…if you’re lucky you just have enough to meet your monthly bills but you certainly don’t have anything left to play with.

Good luck!

The first step to avoiding the woes of financial debt is to create and maintain a budget.  It’s not as intimidating as it sounds, really its not.

First things first,  create a list of all your monthly income and also a list of your monthly expenses.  When determining income, list all sources including alimony, child support, side jobs, etc.  In calculating expenses, be sure to include housing, food, transportation, utilities, entertainment, etc.  To gain an accurate reflection of actual expenses, sit down each night and write down expenses, just make sure to save receipts.  Determine if your income covers all of your expenses.  If the answer is no, then some expenses need to be reduced.

Adjust expenses.  If it is a small discrepancy, it may mean reducing some minor expenses like entertainment or cell phone plan.  If the deficit is larger, you may need to downsize your vehicle or living arrangements.  If your income covers all of your expenses, you still may want to trim some of the excess fat off your spending habits.  This can free up extra money for things such as vacations or college funds for your children.

Additionally, consider if you need to add new categories.  Some areas that are often overlooked are debt reduction, emergency savings funds, and retirement savings.  An emergency fund ensures there is an adequate amount available to cover unforeseen events (car emergency, etc), should it arise.  This will eliminate the need for using credit which can quickly damage your budget.

There are several advantages to sticking to your budget.  Firstly, most people have set financial goals that they would like to reach in the future.  Sometimes it may be a trip, a brand new car, or a college education.  A budget can help people save money to make these goals a reality.  Additionally, many people are crushed under heavy consumer debt.  Without a disciplined pattern of spending, it is virtually impossible to make much headway in reducing debt.  A personal budget will provide the necessary framework to begin eliminating these inflated account balances.

If executed properly, a budget will allow a person to simultaneously meet their expenses, place money into savings, and pay back outstanding debts.  Therefore, it is anyone’s best interest to create and implement a budget.

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Saving money is the game now if you really want to bank on a good future for you and your family. This is one definite way to ensure that you make yourself able and ready for whatever big plans you have ahead, be it getting a new house, buying a car, sending a kid to college or even a grand vacation.

There are many ways to save money. It can range from setting aside a portion of your monthly paycheck or avoiding the little temptations for you to spend. Make it your goal.

Start at Your Own Home

Saving money should be part of your way of life to make it most effective. It is best that the effort to save be shared by everyone in the family.

Little Efforts

Do not drive if you really don’t have to. If you can, just take a walk or take the bus. Riding the bike can also be very good for your body. Have a car pool with friends or neighbors. You can also suggest doing errands together like doing the grocery store.

Avoid the little temptations that may come your way. It is naturally fine to reward yourself after a hard work every now and then, but do stay away from splurging. Cut back on your expenses.

Use Less and Save Energy

Electricity – Turn off appliances that are not used. Turn the TV off if the show is not worth it. Close the refrigerator after getting what you need. Use lower wattage bulb for rooms that do not need much lighting. These will definitely add more data to your savings!

Water – Check for any leaks in your pipes. Always make sure that the faucet is not dripping. Avoid long showers. Use a glass when brushing your teeth instead of leaving the faucet on.

Phone – Choose a provider that has savings plans especially for long-distance calls.

Gas – Have your car tuned up so you can save on gas. Get membership benefits also from stations. Fill up the tank when the prices go low. You can also do a research on gas saving cars if you have to purchase a new one. Turn off the air conditioning. If there is no need for that, simply keep the windows open. Enjoy the ride and the cool wind.

You may not realized this before, but your household’s basic utilities can actually be your key to saving more money. This has a two-way benefit. You get to save some dollars for your family. You also contribute in addressing the energy crisis.

Often times, the family budget is a source of conflict.  Most of the time, the major earner makes the final financial decision, which isn’t always a welcome deal for the rest.  Since money is such an intrinsic part of family life, families need to achieve accord in this aspect.  There is a four-step cycle in budgeting the family money to maintain peace and harmony.

1. Set your priorities.

Priorities are different from goals.  They are aspects in your family’s life that you, as a family, want to set focus on, say health or children’s future.  While goals are specific targets that support priorities.

In setting priorities, do not set too many as it defeats the purpose.  Ideally, there should only be one, but because life is not ideal, 2 to 3 are reasonable.

As the priorities are set and agreed upon, write them down.  Post the paper where everybody can see them to remind them of what your family is focused on for the next few years.

2. List down your goals.

Once the family has set and agreed on priorities, the next step is to set the goals.  Goals are specific and measurable conditions that, when achieved, will support the priorities.

In setting goals, establish a target that is both challenging yet achievable.  A 10-15% of the family’s income is a good savings target for a child’s future education: stretching yet reachable.

Try to limit your family into setting 1-2 goals per priority, to maintain focus.

3. Work towards your goals.

After setting your priorities and goals, start living by them.  All of the family’s activities will be geared towards working at your goals.  Track progress, particularly on financial goals, by using an income and expense-tracking tool.  The simplest way is to get a notebook and list down all expenses and incomes and set a budget for future spending.  There are those that invest in computer software or a family accountant.  Whatever it is, the important thing is to have a system of monitoring the family’s performance towards achieving their goals.

4. Evaluate your family life.

At a certain point in time, when you feel like it’s time to evaluate your life, check how your family is doing against the goals.  Goals that have been achieved can be checked off the list, and new ones can be formulated.

At times, in major changes, say a career move, or when a family member goes away, it may be time to re-evaluate priorities. When such a time comes, then the cycle begins, just like what it’s for: life!

Saving Money is one hard task. There are lots of things to be considered, primarily on how to budget your cash on hand that would somehow, if not manage to have excess left money, be exact of what it should be used for. Budgeting is really a pain in the neck.  Allocation of electric bills, water bills, phone bills, etc. is just few of the many things being considered on how to utilize your cash wisely. Food is no exception. Being the most important of all house responsibility, we prioritize on how to budget our money, reducing the money spent without sacrificing the food allocation. We mainly buy necessities in groceries. It would be of help if you list down goods you have to buy together with their prices (if possible) so as to ensure yourself that the budget allotted for food is exact or there is a shortage. If so, you could trim down your list or think of a better replacement. To furthermore avoid shopping shortages, here are some tips.

•       List goods that should always be found in the kitchen. Examples of which are coffee, milk, sugar, soy sauce, vinegar, salt, onion, garlic. These goods are necessary, so they are always being bought.

•       Plan your weekly meals ahead of time. This would avoid you overspending on goods invaluable or missing some ingredients that are needed. This would not just clear your worries but it would also save your time.

•       Don’t buy branded goods; instead choose a product that has the same quality of those expensive goods. You’ll get the same benefit without spending more.

•       Buy goods that have dual purpose. A good example of which is mayonnaise. You can use it as a sandwich spread or make macaroni salad instead. In a way, you could enjoy eating both without spending too much.

•       Buy less expensive cuts of meat. List recipes that the cuts won’t matter. At least, you won’t be sacrificing the taste of the food and at the same time you’ll have the chance to buy a larger quantity.

•       Pay in cash. You might be tempted to buy unnecessary goods. This would avoid you from going over your card limit.

•       Try to be inventive and creative at the same time. Leftovers could be precooked in a way that it would look appealing again to your appetite.

•       Bring some snacks whenever you travel. This could be a good reliever for your hunger along the way and chances of being tempted to stop in a mini store; if not be impossible, at least be lessen.

•       Keep a list of prices of goods you always buy. At least, with those products you’re sure of how much you’ll be spending and you could do just a small amount on goods you wish to buy.

•       Shop only once or twice a month. In that way, less time will be spent on going to a grocery store and at the same time, chances of overspending will be minimized.