WiseDollar

Nobody wants to keep track of a complicated budget. Even if you know that budgeting is important, you still don?t want to dedicate a large portion of your free time to this task. When you are away from work, you?d rather be spending time with your family and friends as opposed to staring at a spreadsheet on your computer.

So, is it possible to keep a simple budget for your household? Of course! Here are six helpful tips.

Have a Miscellaneous Category

The task of creating a category for every single penny you spend throughout a month is an unnecessary complication for the budgeting process.

Instead, create a miscellaneous category which can catch various small purchases that don?t fit anywhere else. Of course, this category should have a budget limit just like the rest of your categories, to make sure you don?t waste money on random items during the month.

Use Averages

You aren?t going to know what some of your expenses will be in advance, but you can use average values to even things out.

For instance, your utility bills will likely vary throughout the year, based on weather and other factors. Look at past bills and come up with an average number you can use for budgeting purposes.

Schedule an Annual Review

Trying to update your budget on a monthly basis is probably not necessary. Instead, consider looking at your budget once per year to make changes.

For the rest of the year, you will be using your budget to guide your spending habits ? but you won?t be actively looking to change it. Only when your annual review comes around will you invest the time needed to tweak the budget to match changes in your life.

Keep It in One Place

A spreadsheet is an excellent tool for keeping a budget, so create one and save it somewhere it will be easy to find. You can opt for actual personal finance budgeting tools if you would like, but a spreadsheet will get the job done for most people.

The nice thing about a spreadsheet is that it can be perfectly customized to meet your needs.

Streamline Your Spending

if you spend money using a combination of cash and several different debit/credit cards, it might become difficult to keep track of everything going in and out throughout each month. If possible, try to use a couple of cards as your main method of making purchases.

Buy Less Stuff!

Your budget is naturally going to become less complicated if you simply purchase less stuff throughout the course of a month. Not only will buying fewer things mean you don?t have to do as much work on your budget, but it will also let you save money ? which is the whole point in the first place!

Most people today buy way more than they need, and life gets pretty expensive as a result. Think about your spending habits carefully and there are sure to be places you can find to cut back.

Is your budget simple or complicated? What can you do to make it easier to keep track of?

Photo courtesy of: StockSnap

When you attempt to trim the fat off your body, the steps are relatively obvious. You will probably go on a diet of some kind, and you may get started on a fitness regimen as well. It won?t be easy, but your persistence should pay off in weight loss over the long run.

You can think about your budget in the same way. If you would like to save more money each month, you might need to put yourself on a financial diet. By trimming away some of the unnecessary things from your spending habits, you can put yourself in a better position going forward.

The exact steps you should take to clean up your budget will depend on your situation, but the five tips below may be of assistance.

Cut Out Things You Don?t Use

This is the most obvious place to start. You simply shouldn?t be spending money on things you don?t need, or don?t use regularly.

This might include subscription services that aren?t providing you with good value, or maybe a cable package that you don?t watch enjoy to justify its cost. Take a review of your monthly spending and determine if any of your recurring costs could be cut out.

Dine at Home

You have probably heard this tip before when thinking about budgeting, but it bears repeating over and over again. If you can swap some meals out for meals that you make at home, the savings will add up quickly.

In general terms, you will usually double the cost of a meal when you go out to a restaurant, as compared to making it yourself.

Pay Minimal Interest

When at all possible, you want to avoid paying interest. Again, another relatively obvious point, but one which needs to be made.

Some of the common areas where you may be paying interest include on your home loan, your car loan, and any credit card balances you are carrying. Of those three, the credit card balances should be the easiest to eliminate ? and they also will carry the highest rates ? so target those first.

Shop Around

Sometimes, you can clean up your budget by purchasing fewer items in a given month. But what if you already do a good job of only buying what you need? In that case, you can turn your attention to shopping around for better prices.

Thanks to the power of the internet, it takes only a moment to find the best available price on just about any item.

Get on the Same page

Everyone in the household needs to be on the same page when it comes to budgeting. Make sure adults and children (if they are old enough to spend money) understand the importance of financial goals. This way everyone can work together to keep the budget on track.

If there is a teamwork mentality in place with regard to the money that is spent by your family, some of the wasted ?fat? should quickly be eliminated.

How have you trimmed the fat from your budget? What other ideas can you think of to easily save money?

Photo courtesy of: stevepb