Category: Self Help

What can you do to cut your budget?  This is one of the common questions I hear from readers.  You’ve already done everything you can, but it still does not work.

I remember when my husband and I were struggling after I quit my job to stay home with our first born.  It was tough and we all know you can’t get blood from a turnip!

Before you look at what you can do to save on your budget, you need to make sure you have one.  Your budget needs to be in writing. It needs to be a roadmap showing you where you will spend your money.

Here are some different things we tried, which you can use too when you need to cut your budget:

1.  Find ways to bring in more money each month.

Of course, you can’t give yourself a raise at your job, but there are other things you can do to bring in more money.  We ended up selling items, I found a part-time, work from home job with my prior employer and eventually, started this site.   You sometimes need to look inside and where your passion lies and you might find the perfect way to increase your income.  Just a bit more money can really help your budget every month.

2.  Don’t be so hard on yourself.

Sit back for a minute and look at where you were before you knew about budgeting and stretching your dollar vs. where you are now.  Be proud of what you’ve done and the changes you’ve made.  Sometimes, just knowing that you’ve made positive financial changes is enough to be proud about.  Just celebrate the small victories.

3.  Don’t compare yourself to others.

This is a tough one.  You may see others who claim that they found a way to shave their budget by hundreds of dollars every month.  While we would all love to be able to do that, it may not be realistic for you.  You may have additional expenses others do not have.  Your income is different than them.  You have your own financial goals.  When you stop comparing yourself to others, the need to keep up and compete will stop and you can feel better about your own budget.

4.  Look at your needs vs. wants.

This is a tough one.  There are probably things you have in your life which are wants rather than needs (and vice versa).  Do you have both a land line and cell phone?  If so, do you need both or do you want both?  Why not drop the land line?

Take a look at your entertainment.  Do you need cable?  Why not try to use another way to knock down your cable bill (or eliminate it completely).  Do you need to eat dinner out once a week – or do you want to dine out?

When we were getting out of debt, we did not eat in a restaurant for more than a year.  I kid you not.  It was tough, but we survived.  The reason was that we determined that it was a want to dine out and not a need.  Instead, we took the money we would have spent having a dinner out and used it towards our debt instead.

5.  Seek assistance.

This may be the time when you need to reach out to get help.  There are times when you just can’t make it on your own and there are programs and services which are here to help.  You can check with your local government to find ways to get help with utility bills, apply for food stamps, locate a food pantry and even get assistance for child care.

Just because you ask for help does not mean you are not financially responsible.  We all have times when we need a hand and these organizations are here to help.  Once you get back on your feet, then that will be your chance to pay it forward to help someone else.

6.  Cut your spending.

This may seem simple, but you can do simple things to reduce your spending at the store.  You can switch from name brands to store brands.

Start to use coupons!  While you may not find them for the fruits, vegetables and meats you need, you can find them for the household products you use and many other products around your house.  Combine these with sales to ensure you pay the lowest price possible.

You might also consider changing where you shop.  One idea is to shop at Aldi.  If you live near one of these locations, you can easily cut your spending by nearly 50% just by shopping here!
7.  Use Cash.

I know it sounds crazy, but it works.  When you use cash for your discretionary spending you can never overspend.  So, if you need to lower your grocery spending, the simple way to ensure you do not overspend is to get cash.

Cash is defined and when it is gone, it’s gone. It is a simple tool that you can use to ensure that you always stay on budget and help keep your spending in check.

If your budget is not working, then it is time to make some big moves. It will not be fun. It will not be easy. But it is something you just have to do.

There are numerous informative and well-written books that can help you with financial management. Here is a look at the ten top finance books you should have on your shelf.

1. The Millionaire Next Door by Stanley and Danko

Based on an extensive research on the spending habits of millionaires, this book tells you how to earn and save money. The book discusses ‘next door’ millionaires, who have worked their way to riches in less than glamorous businesses such as pest-control services, rice-farming, contracting and planning weddings etc.

What separates them from today’s millionaires is their lifestyle and spending habits. These businessmen value their money, invest a minimum of 20% from their incomes and don’t spend extravagantly on clothes or accessories. This book also teaches you how to plan a budget and stick to it.

2. The Automatic Millionaire by David Bach

This book tells you how to plan your finances using simple common sense. You can learn to make a better use of available financial tools to earn more money. The idea given by the author is about automating your finances by changing your spending habits and making wise investments. The “Latte Factor” that he discusses in the book tells you how you can save money for a financially secure life post retirement by making a commitment to reduce debts and cutting down unnecessary expenditure on cigarettes and lattes.

3. The 4-Hour Workweek by Timothy Ferriss

The 4-Hour Workweek is about the “New Rich”, who speed up their retirement plans to start living their dreams now, when they are younger. It is an easy-to-read book offering practical tips on how to work for just 4 hours a week and use the remaining time to do all that you want to.

If you are an employee, you can use the ideas in the book to negotiate a work-from-home arrangement with your employer, or plan a ‘mini’ retirement every year. The book provides a lot of ways on how you can outsource your business to enjoy the mobility and freedom to work from anywhere you want. The main point the author drives home is about spending less time to earn money and more time on pursuing your dreams.

4. Your Money or Your Life by Joe Dominguez and Vicki Robin

Your Money or Your Life offers a different approach to money management. Like The 4-Hour Workweek, this book also talks about the importance of pursuing your dreams. It discusses how to manage your money and time to spend more time on doing what you like to do and less on what you don’t. It gives you specific tips on monitoring your spending habits, identifying exactly what you want to do and contributing money towards achieving your goals.

5. Yes, You Can… Achieve Financial Independence by James E. Stowers

Written by the founder of Twentieth Century Mutual Funds, this book offers you basic finance lessons and teaches you the concept of investment using illustrative cartoons and images. To understand what kind of mutual funds can get you better returns and to make the most of your mutual funds investments, read this entertaining, informative book.

6. Secrets of the Millionaire Mind by T. Harv Eker

In ‘Secrets of The Millionaire Mind’, the author focuses on your subconscious thoughts and believes that you cultivate your monetary habits right from the day you are born. He writes, in a humorous way, that you are rich or poor based on how you imagine yourself to be.

According to him, thoughts that make you feel you are not good enough to have money or that you will remain poor because of your ancestry are small thoughts that the poor have whereas the rich are committed to creating wealth and optimistic about their finances. The point that the author, Harv Eker, wants to stress on is that your mind should be ‘set’ on success if you want to achieve anything in life.

7. You Call the Shots by Cameron Johnson

‘You Call the Shots’ is a book for young entrepreneurs who want to learn all about personal finance and entrepreneurship. This book is for anyone who has a passion for life and is committed to pursuing their dreams. A successful young entrepreneur himself, the author’s story tells you that the best way to achieve what you want in life and enjoy incredible success is by being an entrepreneur, who calls all the shots.

Cameron believes that with the internet making it easy to start and develop a business, you don’t have to work for an employer. He also gives you a thorough sketch of the strategies necessary to remove obstacles in your path and taste entrepreneurial success.

8. The Total Money Makeover by Dave Ramsey

The author of this book, Dave Ramsey, compels you to look at rather extreme measures to remove all your debts. He tries to break the myths created by the credit industry and provides something known as ‘the debt snowball’ to solve your debt problems. If you are motivated to live a debt-free life, it may be wise to listen to what the author, who has a personal finance empire, has to say. The author tells you exactly what to do when you are free from debt and when is the right time to invest money. Though the book may be all about managing your debts, it is also a great motivator, encouraging you to stay debt-free.

9. Rich Dad, Poor Dad by Robert T. Kiyosaki

The book tells you how you can achieve financial independence and make money through investments, real estate and other earning strategies. The ‘rich dad’ and ‘poor dad’ discussed in this book have different approaches to wealth creation and spending. The book simplifies the complex world of finance by illustratively explaining the flow of money from your source of income towards your expenditure. It advocates that whether you become rich or poor depends on the way you spend your money.

10. What Color is Your Piggy Bank? by Adelia Cellini Linecker

A small and easy to understand financial guide for kids who want to learn all about money and financing, this book is filled with fundamental lessons for kids aged between 10 and 14. It gives wonderful ideas to kids about identifying a passion or interest, like party planning or after-school arts and crafts lessons, which they can take up to earn some cash. The author has kept the chapters short and the content straight-forward catering well to her young readers.

These top 10 finance books not only offer a great reading experience, but also provide valuable financial advice. See if you can find these books at your local library or buy one that seems interesting from the above list from a bookstore.