In part one we discussed the first step in creating a budget. In part two the analyzed the data and in part three we set up the budget form on a spreadsheet. On this post, the last in the series, we will talk about how to make the budget work for you by saving money.
After a month it should be rather clear where all your money goes if you have kept up with your budget form. Now is the time to set a number lower that what you have spent the first month of keeping track of your money.
You may think that some expenses are fixed and you can’t really change them like your mortgage or your car payment. But there are ways to change them, it takes time but it will save you money.
With a mortgage you can refinance if the mortgage rates are less than what you are paying. Or you can take the extra money that you will be saving from keeping a budget and pay down your principal.
Your car payment like your mortgage can be paid off quicker by paying the principal. In the future, you might want to reconsider buying any car that takes up a large sum of your monthly income.
As we discussed in part two various monthly bills can be reduced by applying common sense such as eating out less and conserving energy by keeping the air condition and the heat at a constant setting. Clipping coupons can be advantageous.
By having a budget you will build a resistance to wastefulness and spending excesses. And the reward will be saving money, money that you will need for unexpected expenses and retirement.
