budget tips

I read an article in the local newspaper [Gouda] this morning that prompted this blog post.

I think money is a significant topic for people with chronic pain. They are sometimes hampered by not being able to work full time or not be able to work at all. So some of you are going to run into the problem of having to cut the expenses.

Debt? Doesn’t it frighten us all, to not have enough money to make it to the end of the month? More and more people get into trouble because of the current economic situation. But is that all?

I think not. Whole generations grew up in a land of plenty. For almost twenty years you could switch jobs when it suited you and employers wanted to have you. During this time the world we lived in changed drastically as well. Older generations were happy with so much less. They had a tv, a landline phone and a car, that was pretty much it. Nowadays we want and expect so much more from life. At least one computer in the house, a mobile phone for every family member[smartphone of course] I-pods, e-readers the list goes on.

At the same time many of us were not taught to really handle money well. Another difference with olden days is that we all have bank passes and credit cards. Isn’t it easy to spend that money and completely forgot we did so, only to come in for a nasty shock at the end of the month.  How many people would know what they spend each month if you ask them on the street?

There are a few key points to sticking to a budget:

• ·         Know how much you have coming in each month

• ·         Calculate how much you need to spend each month on essentials, so you know how much you have left over to indulge yourself with or maybe put it away for emergencies

• ·         Keep a record on everything you spend.

• ·         Try to use cash and not your cards when you spend money. For example give yourself a weekly budget, if the cash is gone, you know you need to stop.

• ·         Do not go over the limit on your bank cards or credit cards. Being overdrawn on those cards is one of the most expensive things there is.

• ·         Do not buy anything on a credit card if you know you will not be able to pay for it.

Another tip:

Every year at the end of the year I print out my bank statements of the previous year and go through them item for item. You would be amazed how many things creep up that you don’t really use or are not interested in any more.

I then spend some time cancelling my subscriptions to all such items earning myself a little more pocket cash each year.

Emotional shopping:

This is where it gets really hard. Some people react to hard times by rewarding themselves with goods or food. This helps for a short while but in the end it only makes matters worse when they realise how much they have spend. Money they did not have in the first place.

So helping people stick to a budget should involve more than just learning how to handle the figures. It should also involve looking at the reasons behind the spending. Helping them find healthier methods of coping with hard times besides spending the money.

 If you have any other tips on how to save money, please share them by leaving comments. I love to hear back from you.