Budgeting Techniques

There are a number of ways people go about budgeting. Some people are blessed with the ability to say no to their own wants, others (like myself) have to find ways to make it impossible to say yes. Here are a few examples of way to budget your money so you only spend what you can afford.

1. Cash only

Just like it sounds, CASH ONLY! No debit or credit cards. Take out the money you have budgeted for the week or month and that is all you get until the next budgeting period. This is extremely effective for those of us who don't think twice about swiping a card to pay for something. For me personally it hits my wallet a lot harder if I can physically see how much of that green paper is being handed over. One of the most effective ways I have known for budgeting is called the envelope system. Take a number of envelopes and write down the different areas you have budgeted for. Now disperse the cash into each envelope. When you go grocery shopping take the "Food envelope" with you. This way, you can only spend what you have on you, no more. When you go out to eat, take the "luxury, or Mad Money" with you. If all you have is cash, then that is all that you can spend.

2. Go back to checks.

In a world where plastic seems to rule, hand writing check may be a viable alternative to those who do not want to carry all of their money for the week in their purse. While most checks today are treated like debit cards, the physical handwriting out of the check is another reminder of how much you are spending. However, if you are a person who has more self control than I do, a debit card can also do the trick. The important thing is to make sure you are staying with in budget every week!

3. Prepaid Cards.

This is something that is a good alternative to cash. They work just like debit cards, even at ATM'S, but you can reload your weekly or monthly budget onto one of these cards. They cost about 5 dollars initially, but you can reload them at anytime. Security features include, your name on the front, pin #, and replaceable if lost or stolen. However, this card is NOT attached to any of your bank accounts so you won't run the risk of overdrafts. This is also a good way to learn how to manage debit or credit cards for persons who have had credit trouble in the past. You get the ease of a card but none of the risks. Check out VISA prepaid cards online to see the options, or go to a Walgreen's, CVS, or Walmart. Most of these stores carry them near the gift card section.

These are my suggestions on ways to budget. It is easy to make a budget on paper, but following through when you are in your favorite shoe shop can be difficult. If you only have cash and it is the difference between having those great stilettos or eating dinner that night, hopefully you will come to a conclusion that is best for your family. A few small sacrifices for a short period of time can mean a lot less stress for years to come!