Budget

A Two-Pronged Approach to Spending Less

One way to think about cutting costs is to come at it from both ends. What do I feel I absolutely must spend money on? And on the other hand, what are the obvious extravagances I have no difficulty in identifying and letting go of?

Perhaps one insists on having a home, not living on the street. That’s a good baseline for the housing part of the budget. On the other hand, perhaps one could cross expensive artwork for decorating that home off the list of future expenditures. That’s fairly obvious too.

Maybe have to have a vehicle to get around in a normal fashion, so I spend on that.  On the other end of the spectrum, maybe I don’t need to spend money having an optional moonroof installed on my vehicle.

These are wide extremes. As I’ve worked through the process of cutting expenses, I’ve gradually come closer and closer to the middle balance in all budget categories.

 

Advertisements

Those Predictable But Irregular Bills

Things like property tax, car registration, the half-yearly car insurance bill, holiday spending, vacations, big car repairs, replacing appliances are all things we know will happen. Because they don’t happen every month like rent/mortgage and utilities, it’s harder to plan for them.

Years ago I had a system for that. I added up all of those expenses for the year, divided by twelve, and put that much in a savings account each month. It worked very well. I never had to use credit to pay anything, and felt a certain financial serenity that was very nice.

An article in the Dollar Stretcher today informed me that that method is called a “sinking fund.” According to Dave Ramsey, this is different than an emergency fund. The items in the sinking fund aren’t unexpected emergencies, they are expected but irregular expenses. https://www.daveramsey.com/blog/stop-the-panic-sinking-fund

 

 

Marie Brack is the author of Frugal Living for the 21st Century: Adventures in Using Your Money Wisely. It’s available on Amazon.com in both Kindle and paperback versions.

amazon.com/author/mariebrack

https://adventures99.wordpress.com/feed/

A New Financial Start

Maybe you spent a bit too much over the holidays. January sometimes brings on a sort of financial repentance, and a desire to use money more effectively in the new year. My book can help with that. Frugal Living for the 21st Century: Adventures in Using Your Money Wisely deals with the need for financial change from both directions – spending less and earning more. Maybe you have friends or relatives who spend too much, or want to get out of debt. The book would make a nice gift for them, or just tell them about it. Want to retire early? Take a fantastic trip? The strategies in the book can help you move toward any financial goal.

It’s available on http://www.amazon.com in both paperback and Kindle versions.

http://www.amazon.com/gp/product/1517193176?keywords=Marie%20Brack&qid=1451257439&ref_=sr_1_1&sr=8-1

Wonderful review

I am so moved by this review. “Tightwad Gazette of the 21st Century” is exactly what I wanted people to think about it:

“Great book!, February 18, 2014

By Lita McRiley “Sorlina”See all my reviews

Amazon Verified Purchase(What’s this?)

This review is from: Frugal Living for the 21st Century: Adventures in Using Your Money Wisely (Kindle Edition)

This book is jam-packed with tips, ideas, and strategies for saving money. It’s the Tightwad Gazette of the 21st century… internet addresses for DIY help, encouragement for readers, personal anecdotes, this book has it all. To top it off, it’s delivered in a light, easy to read style that isn’t preachy or judgmental. A very helpful, and enjoyable, read!”

The Tightwad Gazette has been the “bible” of thrifty living. My hope was to make it the ‘old testament’ and mine the ‘new testament’, and it seems I have succeeded.

.