My budget didn’t balance?

It’s been over 30 days since I challenged you to start tracking your expenses.   Last month I did a post on creating a budget or spending plan.   If you created a budget and found that your expenses exceeded your income, then one thing you can do is evaluate what you can live without.  Here are some examples:

Cell Phone
Telephone Extras (call waiting, caller ID, voice mail)
Internet service
Dining Out
Lawn Care
Excessive Clothing or Accessories
Manicures, Spa Treatments
Shopping (how many times a week do you buy things that are not for basic needs?)
On-Line Subscriptions 
Gym Membership 
Monthly memberships for video rentals

I know you may think these items are necessary but if you are in a financial crisis, are they necessary?  If you have to charge groceries but sit down to watch a show on cable, is the show so important you are willing to acquire debt and interest to watch it? 

This is just one example. I’m not saying that these things are wrong or that people who have these expenses are not spending their money wisely.  I’m saying that if you have to charge monthly things, borrow from family, continue to accumulate debt or not pay your bills, then one of the places you should look at are luxury expenses.

List all your expenses that are not required to live on and/or could be cancelled without penalties. Then number the expenses in the order of importance. Think about getting rid of 2-6 expenses that end up at the bottom of your list.  Tomorrow I’ll give you some alternatives to these things.



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