Personal budgeting is a mental game. One way to play and win is to train yourself to run your life like a home-based business. Consider the cash you carry in your pocket much like a petty cash account entrusted to you by your employer. You need to maintain a level of accountability over even your most trivial purchases. Do you pay for services out of convenience or necessity? For example, you can't easily do your own dry cleaning but you can reduce the bill! You can also take the car to a do-it-yourself car wash, do your own gardening, shovel your own snow, and file your own personal income tax return.
If you were running a business, you would typically expect "your money's worth" from an employee. You would expect accountability. Why not apply these same standards to your own day-to-day personal affairs?
1. Track your spending (recording what, when, where, and why) and teach yourself to save money on a transaction by transaction basis rather than by setting an abstract daily, weekly, or monthly goal. Focus on impulsive spending habits AS THEY OCCUR rather than on a vague "dollar" goal you want to save over a period of time. Disciplined behavioral patterns of individual spending provide a better foundation for long-term financial habits than an end-of-day/week/month accounting of cash.
2. Look for specials price offerings in your local newspaper. Avoid any form of media that encourages impulse buying like, for example, television infomercials or celebrity endorsements. Always comparison shop. Save money by avoiding retail priced goods. Buy irregular or 2nd hand items and clip coupons for discounted rates or rebates whenever possible.
3. Avoid browsing shopping catalogs especially during major holiday seasons like Christmas, Valentines Day, Mother's Day and Father's Day. While buying gifts for loved ones is difficult, decide whether to make personal purchases based on your "needs" rather than your "wants".
4. The admonition to never go food shopping on an empty stomach is worth consideration. Similarly, discourage yourself from immediately buying an item you have just seen by putting some measure of time between the first encounter and the final purchase. If you feel the urge to buy something while shopping in a store; walk outside and around the block before you decide to return and part with your cash.
5. Cook your own meals rather than eating out at restaurants or on the road. Avoid take-out or fast food services because even they are typically more expensive than shopping for and preparing your own meals. Minimize your travel and entertainment expenses especially when there are cheaper alternatives for having a good time.
Personal budgeting is more than just adding numbers; it is a mental game of discipline and self-control. Reduce as many expenses related to unnecessary purchases and services as possible. Consider maintaining a budget as an opportunity to take control over your money and teach yourself to run your life like you are running a home-based business!
Phillip Schein is an author and consultant specializing in key areas critical for successfully running a home-based or small business. Phil's background is in Ecommerce, accounting and information technology where he has spent over 15 years in various levels of corporate management, as a business consultant, and a corporate trainer. He has published several technical books. Originally from New York, Phil now lives in Las Vegas, Nevada because he enjoys the warm weather. One of his current business websites is http://www.runningahomebasedbusiness.com You can contact him through his business website http://www.rainorshinesoftware.com
No comments:
Post a Comment