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Budgeting Tips

Thought you heard them all? So did we until we read the following budgeting and savings tips. The pages below contain a consolidation of thought provoking ideas for saving and cutting additional corners in your current budget.

Before we began our categorized list of tips, let's take a look at your current budget.

Rejuvenate your current budget

Budgeting is not a difficult task. The majority of us have created a savings plan by evaluating our monthly income (in many cases a semester allotment of federal and alternative student loans) against our expenditures. Our spending habits were identified and we did our best to reduce these expenditures. Staying on track is cumbersome for us all, especially when we are not obtaining our goal. It may be time to rejuvenate your budget.

A Financial check-up on your current budgeting plan

Have you included categories that fit your personal situation and your spending habits, not somebody else's (i.e. use of a one lifestyle fits all budgeting template).
Subdivide your categories to give you a meaningful picture of where your money goes and where you might be able to cut costs, but not so much detail that tracking is a chore that you'll soon tire of.
Use accurate income projections. Pull out your financial aid award letter to provide the actual amount of fund allocated to living expenses.
Don’t forget the inclusion of expenses that don't occur on a monthly basis, such as auto maintenance, increased travel for rotations, study guides, etc.
Regularly review your categories to determine if you need more or fewer, review your expenses, and brainstorming about ways to trim costs in each category.
Cash spending is the biggest leak in most budgets. It may be time to document everything you spend during a two week period. A new semester could create a routine of spending that you are currently unaware (i.e. grabbing a snack between the library and the evening class).
Review the line item for savings so you treat a contribution to your savings account just as you would a bill you owe.
Are your original written goals realistic? Budgeting isn't about tracking your costs; it's about setting financial goals (i.e. saving for an emergency, buying a used car for rotations, getting out of debt, traveling home during break, etc.) and finding ways to meet them. Without goals, your budget is just a pair of handcuffs.
Most importantly, maintain your internal motivation and a positive attitude!

Think Green - Conserving energy will save you money

Out with incandescent lights -- In with florescent light bulbs; Incandescent lights drains energy, contributes to greenhouse gas emissions, and during hot summer months creates extra heat in the home.
Use florescent light bulbs. Florescents typically last longer, use less energy and are often cooler than their traditional incandescent counterparts.
Dishwasher – Rather than turning the heater on to dry dishes after the wash cycle, let the dishes air dry or dry them off with a hand towel. Again, you are directly saving energy and contributing less to the internal heat gain in your home
Water usage -When you run water, unless you need hot water, always turn on the cold. Just the little bit you run from the hot water heater can cause the water heater to turn on.
Water usage Don’t leave the water running while brushing your teeth.
Water usage Fix any dripping faucets.
Wash clothes in cold water. This not only reduces hot water usage, but it is better for your clothing as well.
Clothes dryer - If you can, hang clothes on a line outside. If this is not possible, use the lowest possible heat setting. In addition to saving energy, it is better for your clothes
Shower - Take shorter showers and during hot months, open the window to allow heat to escape. You can also shop around for a more efficient low flow shower head.
Computer - The hazards of turning your computer off is a myth. Turn it off when you are not using it. This can be a perfect opportunity to upgrade older models for more energy efficient newer technologies.
Furnace pilot light - It's pretty obvious that you don't need to crank up the furnace. Turn off the pilot light until the cold fronts start rolling in.
Seal any cracks around doors, windows and walls. These cracks can allow cold air into your home in the winter and hot air in the summer.

Implementing small cost-saving measures may not be as fun as, say, winning the lottery, but it's a 100%-guaranteed way to keep more money in your pocket while saving our natural resources.

Successful budgeting Tips

Track your spending for two to four weeks to find out where your money is going. Are four trips to Starbucks a week really necessary?
Budgeting tip: If you spend, spend, spend at the beginning of the semester, you could be tapped out later. Give yourself a spending limit for each week. Stick to it, and you won’t have to eat macaroni and cheese every day in December.
Budgeting method: A good way to monitor your living expenses is through “the envelope system.” When you receive your check, divide the cash into envelopes for your monthly expenses. Envelopes will consist of rent, groceries, utilities, transportation, etc. By allocating funds on a monthly basis you will not come up short of your essential monthly expenses.
Spending temptation: Avoid exposing yourself to things that will tempt you to spend. Stay away from the stores except when you have something you absolutely need to buy. Make a list and stick to it when shopping and then leave the store. Just browsing can lead to buying.
Budgeting tip: While living on a saving plan, you can do what you want, but you can’t do everything you want. You’re going to have to make some choices. Whatever you choose it is going to cost some money. So be realistic in the decision.
If you know you need to buy a new CD or go to a concert over the week, make room for that in your budget.
Budgeting tip: If you bust your budget on something you really want to do this week, make up for it next week. Just be prepared to buckle down on future spending to make up for it.
Budgeting tip: Whether it’s a road trip with friends or an auto insurance bill, if you know a big expense is coming, start putting some money aside to pay for it. Squirreling away $25 a week will make that monster insurance bill a lot less intrusive.
Budgeting tip: When an ATM withdrawal is made, the best way to keep track of cash spending is to keep the receipt and write every item you purchase on the back.
Budgeting tip: Distinguish between needs and wants, and save the wants until after you have paid for the needs.
Budgeting tip: Treat saving as a bill. Consider having the amount transferred automatically from your checking account or paycheck. Pay your account every month or every two weeks.
Financial software is the best way to monitor your spending. By banking at an institution that provides downloads of your monthly transactions, you can easily export them into either Quicken or Microsoft Money. The program will categorize your expenditures so unnecessary spending trends can easily be identified.
Frugal spending: Contact a local massage therapy school. You’ll pay a reduced price for massages so that their students gain experience.
Savings tip: Once your savings goal has been met, it is important to mark the occasion and congratulate yourself and all those who helped! We all need to feel successful and not just on an endless treadmill.
Budgeting tip: If cash burns a hole in your pocket, don’t carry it around. It is the small items that count up. Latte here, slice of pizza there and the $20 in your wallet disappears.
Plan your shopping. Go with a purpose in mind. Use that list! Extras you don’t really need can certainly push up the total at the cash register.
Shopping: People shop when they are bored, nervous or anxious. So if you are overcome by boredom or anxiety, stay away from the malls, QVC and internet shopping!
Shopping: Combine errands in one trip. You will save time, money and gas. The more frequently you go to the store, the more likely you will purchase items that were not on your shopping list.
Shopping: Use coupons (and not just the pesky ones you have to cut out from the Sunday paper, either). Any time you buy online, open another browser and do a quick search for online coupons for that retailer. You can sometimes save as much as 15% with a quick click of the mouse.
Make secondhand a way of life. Shopping at yard sales, consignment stores, eBay, and Craigslist are great ways to cut costs immediately.
Why pay retail for a toy that may only hold your child's attention for a second or two? Discount stores such as T.J. Maxx, Marshalls, and Tuesday Morning offer great bargains on quality toys.
Budgeting tip: Before spending your money, think through the decision making process:
If you do decide to buy, do some comparison shopping. Comparison shopping is important when making major purchases and for repeated purchase of relatively inexpensive items. For example, when shopping for a small household appliance, gather reliable and accurate information. Be sure to compare the alternatives. Two superior websites for comparison shopping are: www.epinion.com and http://www.techbargains.com/.
Look now, buy later. Look around before you buy. Sleep on your decision overnight. The item may not be as appealing as you thought and you may decide not to buy it after all.
Cable Televisions: How much time are you really spending watching premium cable or satellite channels? Subscribe to a basic plan and rent an occasional movie. Or better yet--delete television from you life altogether. It cuts the “I wants” drastically.
Know your cell phone personality. Match your usage as closely as possible to a plan so you neither pay for service you don't use or have to pay outrageous overage charges.
Percentage weight of expenses: The following net income percentages are recommended for monthly household expenses. It may be interesting to calculate where your expenses fall within these percentages.

35% Housing –That includes: mortgage payment or rental, utilities, insurance, taxes and maintenance.
20% Transportation –That includes car installment and insurance, fuel, parking, maintenance and tickets.
20% Other – Do net spend more than 20% of net income on all other expenses: food, clothing, entertainment, child and medical care, charity and tithing.
15% Debt – Debt includes student loans, credit cards, personal loans, medical debts, etc.
10% Savings -- Save at least 10% of income throughout your working life.

Thought for the day: Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.
Printers: Recycle and refill. Come up with creative ways to save on office supplies. Purchase ink refill kits that will cost a fraction of replacing a new cartridge. They can be found at office supply stores and on-line.
Frugal Spending: Use both sides of the paper. Instead of throwing it away, print drafts on both sides.
Frugal Spending: When printing draft copies use the draft quality of print. It not only saves ink, but prints faster too. Turn frugality into a game. Instead of force-feeding budgeting tips to yourself, look at this as an adventure. Try to top your own savings each week or compete with a friend.

Credit Cards

Credit cards: Avoid using credit cards for small purchases, such as sodas and snacks. Who wants to pay interest on a bag of Doritos?
Credit cards: If you have the discipline to use a credit card and pay off the bill every month, use one that promises a cash reward and bank the money.

Keep Food Costs Down

Eat what’s on sale, not what’s on your menu
Beware of end-of-the-aisle dump bins, island displays, recipe related item placement, and "middle-shelf" items. This is typically, where higher priced and impulse products are placed.
If you are not cooking at home every night and eating brown bag lunches, you can no doubt reduce your current food expense.
Grocery shop with a list with a “bottom line” figure (e.g. $50 per week) and items that total to this amount. To avoid impulsive buying, include a certain amount (e.g., $5) on your list for unplanned items.
Use fewer convenience foods by cooking main dishes (e.g. pasta dishes and casseroles) in batches and freezing them.
Buy nonfood items (e.g., toothpaste) at a discount drugstore, warehouse or other low-cost retailer. Stock up on items when they are on sale (e.g., canned goods or in season produce).
Take advantage of special store promotions such as two-for-the-price-of-one deals. When the price is reduced, stock up on the items that you normally purchase.
Compare the price-per-ounce or other unit prices on shelf labels. Just because a name brand item is on sale, it doesn’t necessarily mean it is less expensive than other brands.

Dining Out

Almost everyone enjoys eating out occasionally. So make it a part of your “entertainment” budget but then stick to it. Save to eat at a nice place for special events rather than squandering it on fast food non-events.
Keep your eyes open for new restaurants in town. They typically offer grand opening specials.
Take advantage of the chambers of commerce and visitors centers—even in your own town. You’ll find great restaurant discount coupons.
Limit eating lunch out, and try brown bag lunches.
Go vegetarian. Vegetarian entrees are usually less expensive than ones made with meat.
Go ethnic. Some ethnic foods are better bargains than others. You can get a lot of food for the money in Chinese, Mexican, Italian, Indian and Thai restaurants.
Share an entrée or stick with the appetizer menu. Many restaurants serve portions that are too large for one person to finish.
Have a candlelight dinner at home, and then go out for coffee and dessert
If you only clip one coupon try this link--http://couponing.about.com/od/restaurantcoupons/a/pizzacoups.htm

Family Care

Even the youngest child can contribute change to the savings goal. It is easier for children to get involved if they understand why they must give up pizza night or at least cut down the number of toppings. Also, you are setting a good financial example for your children.
Involve the whole family in saving. Plan a treat for everyone when you reach the savings goal. Make it something everyone will look forward to, but inexpensive, such as a day at the zoo, museum or beach.
Check out local beauty school for kids haircuts, etc.
Do you know a co-worker or classmate with similar backgrounds and parenting styles? Perhaps you can split the cost of home childcare.
Go solo. Kids tend to toss high-priced, ooey-gooey cereals into the cart when you're not looking or pressure you to buy items that you weren't planning on buying.
If your public school district offers a half-day pre-K program for 4 year olds, enroll your child. It’s free and reduces childcare costs to half-day rates.
Check the expiration date. Buying outdated or soon-to-expire medication is as good as throwing money away.
Buy the small size. Unless you have a large family or a documented need for more, think small. Sure, the larger package has a better per-ounce price, but odds are you will have plenty left over to pour down the drain when the expiration date comes around.
Use your insurance company's mail-order prescription program. Chances are you will save money and time, in addition to avoiding the tempting candy bars by the Walgreen's checkout. Cut out the beef. Decreasing your meat consumption or eliminating it altogether can spell big savings over the course of a year.

Reduce your Car Expenses

Car expense. A car that is new or a car that is in bad repair can sabotage a budget. As the Philadelphia area provides multiple methods of public transportation, consider becoming car less. Transportation issues can be minimized by moving closer to campus, participating in a rideshare, vanpool or bicycle.
Car insurance tip. If you have an older model and are a good driver, review your current auto insurance policy and raise the level of the deductible (which is a major factor in the premium costs). If you are willing to carry a $500 rather than a $100 deductible, the insurance company is shouldering less of the risk and their rates go down.

Car Maintenance will Save you Money.

Tune-ups. Make sure tune=ups are up to date. A poorly tuned car uses between 25% - 33% more gas each year. It’s less expensive to pay the cost of a tune-up.
Change the oil and filter in your car every 3,000 miles, regardless of how often your owner’s manual recommends. More frequent oil changes are the single most important factor in extending the life of your engine, and will more than pay for themselves in savings on repairs and engine wear.
Check your car’s air filter monthly. A dirty filter shortens the engine’s life and reduces gas mileage up to 10%. You can clean the filter by removing it and blowing it with an air hose, or you can replace it.
Use steel-belted radial tires. This can increase your gas mileage up to 10% per year.
Check your tire pressure regularly. You can lose up to 6% in gas mileage for every pound of under-inflation.
Balance your tires. Add thousands of miles to the life of your tires by having them balanced once a year. In addition to destroying the trend, properly balanced tires can wear out your shock absorbers and damage your suspension system, leading to more expense.
Check fluid levels regularly. Low battery water shortens your battery's life. Also check coolant, automatic transmission fluid, brake and clutch fluids

Conserving a tank of gas

Wasteful driving habits can double your fuel consumption. Develop gas saving habits, such as:
Always accelerate gently;
Watch traffic ahead of you so you can anticipate slow downs and avoid stops; slowing down and speeding up wastes fuel.
Maintain a steady speed on the highway. Avoid getting stuck behind slow cars where you have to slow down to their pace and then speed up to pass.
Accelerate before approaching a hill rather than when you are climbing it. Your engine is forced to work harder on an incline, thus reducing gas mileage.
Coast up to traffic jams by lifting your foot off the gas pedal instead of approaching at full speed and slamming on the brakes. It takes 20% more gas to accelerate to normal speed from a full stop than it does from four or five miles per hour.
Don’t drive too fast. A speed over 40 miles per hour (mph) creates incredible wind resistance that your car must overcome. This increased resistance causes your car to burn more fuel. Traveling at 55 mph give you up to 21% better mileage--speed limits of 65 mph and 70 mph burns 20% to 30% more gas;
Don’t warm your car up by letting it idle. The engine warms up faster when driving than it does when idling, and idling wastes about a quart of gas every 15 minutes.
Don't Warm Up Your Car Older cars required time to let the engine start working. Newer cars are designed to start cold.
Idling one minute equals the amount of gas used to start the car's engine. If you are forced to sit at an idle, put the car in neutral. Using neutral reduces strain on the transmission and allows it to cool.
Save fuel by combining errands into one trip and avoid backtracking whenever possible.
Shift Gears--Running your automobile at high speeds in low gear can use 45% more fuel than if you were in the right gear.
Keep Windows Closed on the Highway, the increased drag caused by open windows can reduce gas mileage up to 10%.
Avoid Rough Roads Dirt and gravel roads can reduce gas mileage up to 30%.
Remove Excess Weight All of the junk that some people accumulate in their cars can start to add up. Trunks filled completely and other excess weight causes the engine to work harder. Whenever the engine needs to work more, fuel efficiency decreases.

Auto loans

Get pre-approved for an auto loan before car shopping. That way if a dealer wants your financial business, he’s going to have to beat the best rate you’ve found on your own.
Shorten the length of your car loan by making biweekly payments. Since the auto loan is a simple interest loan, you reduce the amount of principal with each biweekly payment that is made.
Refinancing a car. If you are carrying a high balance on your car loan and the automobile is less than 5 years, refinancing may be an option for lowering the interest rate.
Keep cars longer instead of trading every few years. Not only does the cost of new cars rise each year, but also cars depreciate quickly, and when you trade frequently, you lose money on low trade-in values. Buy a good quality car and keep it for five to seven years. Enjoy the freedom of not making a monthly car payment!

Buying a new car?

Plan to make a down payment of 20% or more and don’t finance longer than four years.
Use the internet to find the value of your trade in before going car shopping. Research for the lowest pricing and financing options on the car you would like to buy.
Know your credit score before you shop. You’ll be able to shield off a dealer’s higher interest rate offer because your credit score is “too low.”
When buying a new car, consider the impact that various options have on fuel economy. For example, automatic transmissions get about five mpg less than manual transmissions; six cylinder engines get about four to five mpg less than four-cylinder engines.
Be extremely wary of purchasing service contracts or extended warranties on new automobiles through your dealer. Many of them have very limited coverage (in spite of what the salesman may lead you to believe) and cost a lot of money.
Just say NO to any add on accessories.
Buy, don't lease. Leasing -- even with its low monthly payments -- leaves you with all the headaches and none of the benefits of buying.
Remember, everything dealers do is done for their benefit, not yours. If you have it in mind to lease a vehicle, do your homework before you go into the dealer. This is crucial!!
A car is wheels. Don’t give it more status than that.
Buying a used Car. The Federal Trade Commission provides useful tips on purchasing a used car http://www.ftc.gov/bcp/conline/pubs/autos/usedcar.htm also, http://www.edmunds.com/ provides comparative price information for all types of automobiles. Compare makes and prices before you buy!

Housing Costs

The best time to renegotiate a housing lease is 3 months prior to the end of your lease agreement. Why? If you tell you landlord at the re-signing of a lease that you need to find a more affordable rental, they know that you are not looking. Mention this 3 months prior to resigning the lease and they will be more likely to adjust your rent to the current market value.

Travel Expenses

You can lower the cost of round-trip airfare by as much as two-thirds by including a Saturday night stay over and purchasing a ticket in advance. Keep an eye out for fare wars and be prepared to act quickly.
Travel Frugally. By comparing prices on internet travel sites you may save up to 75%. The most popular websites are: Orbitz.com, Hotels.com, Travelocity.com, Expedia.com and Priceline.com. At Priceline.com travelers may submit their own price. A notice may pop up saying your bid is too low and may be rejected. Make the request anyway. You might book a $180 room for the price of $35.
When traveling, check the visitor centers along Interstates for coupon books for discounts on lodging and meals.
When you arrive at your hotel/motel, be sure to ask about discounts on meals and/or attractions.

Pet Care

Keep careful records of your pet’s inoculations and other health-care services. If you switch vets, you won’t risk having costly procedures duplicated if you can’t recall what was done.
Be selective about follow-up care. Don’t automatically follow up with expensive emergency hospital staff. Follow up emergency care with your regular vet during normal business hours.
Consider alternatives. Humane society or university veterinary clinics may offer thriftier medical services than private practitioners.
Shop around for medicines, online and locally.
Always seek a second opinion when a vet suggests a pricey procedure. This is very important for both your pet’s health and your wealth. You’d do it for yourself, right?
Speak up if it’s a stray. Many vets will discount their services if your pet was an abandoned or homeless critter that you’d rescued. You may expect or ask for at least 10% off.
Consider dietary improvements. Upgrading to higher quality premium foods can pay off in health dividends.

Have Fun for Less

Volunteer at fairs, festivals and sporting events. You’ll get free admission, food and camping, have minimal duties and often get to hobnob with the artists.
Frequent the library instead of the bookstores.
Form book clubs with friends, co-workers and relative to recycle your books.
Read not, waste not. Don’t renew subscriptions to magazines or newspapers you’re not reading.

Ways to Build an Emergency Fund

Start saving something today. It doesn’t have to be a large sum. Even on a tight budget, a small amount adds up over time. Depending on the size of your family, skipping a meal out each week could result in a savings deposit of $160 per month.
While in school, an emergency fund usually is an accumulation of $500 to $1,000. (When earning a salary, the emergency fund should be 3 to 6 months worth of expenses.)
Open a Christmas savings club. You don’t think about spending the money you never see. When holidays arrive, you’ll have the funds to enjoy.
Get an envelope, cookie jar, coffee can or whatever you like and set aside the same amount every week. The trick: Don’t count it, don’t spend it!
Empty your pockets—or your purse at the end of the night. Put all the change into a jar. Not only will you feel lighter, but also your spare change adds up a lot faster than you think.
When you leave the house in the morning, don’t carry anything smaller than a $5 bill. When you get change, don’t spend the singles. At the end of the day, put any dollar bills in your jar.
You go to lunch and tip the waitress 15-20%. Put an equal amount aside for yourself, and your “tips” will add up quickly.
Get “cash back” from your debit card at the checkout counter by rounding up to an even amount. Slip the small amount -- $1, $2, and $5 – into your savings jar. You’ll forget about a buck here and there.
Just paid off a big debt such as a student loan? Keep making the payments—this time to yourself.
Electric or water bill lighter than you expected this month? Save the
difference.
Getting a tax refund next year? Either put the check directly in your savings account or cash it and stash it.
Try investing your savings in a certificate of deposit or an interest-bearing money market and watch it grow!
Windfalls = savings. Use unexpected refunds, monetary gifts, and freak acts of the money gods to pad your savings rather than fund splurges.

Trouble Making Ends Meet--

Contact your creditors immediately if you are having trouble making ends meet. Tell them why it’s difficult for you, and try to work out a modified payment plan that reduces your payments to a more manageable level. Don’t wait until your accounts have been turned over to a debt collector. At that point, the creditors have given up on you.
If the time comes where your debt is beyond control, use this link as guidance in selecting a credit counselor who will assist you in managing your debt. http://www.ftc.gov/bcp/conline/pubs/credit/fiscal.htm