Money Management

Money Management Guidelines

$ Management
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  • Use credit cards only if you can pay the bill each month.
  • Keep track item by item, of where your money goes daily, weekly, and monthly.
  • Do not carry more money than you can afford.
  • Analyze your insurance coverage to make sure you are adequately insured at the lowest price.
  • Cut your recreation cost by taking advantage of community services such as parks, fairs and public tennis courts.
  • Read magazines and books from the library. Cancel book club memberships and magazine subscriptions.

Personal Habits

  • Supplement your income. Work over-time. Do odd jobs at home (baby-sitting, lawn maintenance, etc.) or have spouse and/or children contribute to income.
  • Teach children ways to live on less by caring for their clothing and toys to minimize repairs and losses.
  • Make gifts or give a gift of your own personal services.
  • Buy gifts and holiday decorations for the next season after a holiday has passed.
  • Write more letters and make fewer long long-distance calls.
  • Quit smoking.
  • Buy your cosmetics at the discount drug store.
  • Have everyone in the family use the same brand of toothpaste, shampoo, deodorant, razors, etc.

Housing

  • Maintain your home. Make minor repairs before they become major.
  • Have a yard sale to raise money by getting rid of unwanted items.
  • Learn to make draperies, curtains, spreads and table covers.
  • Wash walls instead of painting.
  • Rent out a room for additional income.
  • Learn how to refinish furniture.
  • Eliminate unnecessary or frivolous cable TV channels.
  • Switch phone service. Eliminate luxury items such as call waiting (and cut down on long distance calls).
  • Set your thermostat at 68 degrees and put on a sweater.

Food

Thirty minutes a week planning your purchases will help you to save money. Shopping should meet your needs, suit your taste, and fit your budget. Isn't it worth the effort? The first area a person wants to cut back on when finances get tight is the food bill. If you do cut back it usually doesn't last more than a week or two before you're back to your usual spending. Or you may start making two trips a week to the store instead of one. So how can you control this area of your budget? Easy, MAKE A LIST!!!

  • Plan the main meal for each day of the upcoming week.
  • Make your grocery store list from the meal list. Include all items that go with each meal. Example, Monday is hamburgers, you will need hamburger, buns, French fries, cheese, tomatoes, lettuce, ketchup, mustard, etc.
  • Add two snack items (ice cream, cookies, etc.)
  • Estimate how much all the items will cost. If you are not sure about the cost of items then take closer look at their prices when you go to the store.

Hints

  • Know your family's likes and dislikes to avoid wasting food.
  • A good diet depends on the kind of food you buy, not the amount.
  • Begin shopping at home-read newspaper ads, flyers, and brochures to find bargains. Look for mark downs and reduced items. Don't forget to clip coupons!
  • Know what foods you have on hand to prevent over buying.
  • Use unit pricing to find the economical size.
  • Know the cost of your favorite brands to help find specials. Try store and "off brands."
  • Compare prices of fresh, frozen, canned, and dried foods to find the best buy.
  • Studies indicate you will spend 17% more for food if you are hungry when shopping.
  • Fresh fruits and vegetables, bought in season, taste better, and usually cost less.
  • Buy the Grade of product you can use – cheaper grades are good in casseroles.
  • The cost per serving rather than the cost per pound is a better guide to use for meats. For example, boneless meats, 1/4 - 1/3 lb. serving (ground meat) some bone 1/2 lb. serving (pork chops) and with much bone – 3/4 lb. (spare ribs).
  • Marinating cheaper cuts of meat alternatives-dried peas, beans, nuts, etc.
  • When there is an eight cent or more difference between medium size and large eggs, the medium size will be your better buy.
  • Individually sliced and wrapped cheese is more expansive than if bought as one piece.
  • The more packaging and preparation to a food product – the more you pay.
  • Shop alone – additional family members add to the grocery cart.
  • Consider purchasing some foods in quantity and splitting the cost with others.
  • Check your cash register for errors before leaving the store.
  • Buy generic brands when suitable.
  • Avoid trips to "convenience" stores and Mini-marts.
  • Plan meatless meals.
  • Try to leave children at home.
  • Don't pick up any item that is not on your list. Your chance of buying that item will increase by 85% just by touching it.

Above all STICK TO YOUR LIST. Everything you need is on it so you don't need to add anything else. Try to total the items as you go. If you think you are going to go over your budget then put one of the snack items back. It will be hard at first to stick with your list and budget the right amount of money. It will take time and practice. Just because you don't stay within your budget the first time doesn't mean you failed, it means you need to reevaluate your budgeted amount, consider if there are items under different brand names that are cheaper. It will take some planning but it will be worth it.

Clothing

  • Don't make impulsive clothing purchases.
  • Make use of factory outlet stores.
  • Swap out grown children clothing with friends and relatives.
  • Read and follow care instructions to make clothes last longer.
  • Spot clean clothes promptly and save dry cleaning.

Transportation

  • Car pool or take public transportation (if available).
  • Shop for the best price on gas and fill the tank.
  • Higher octane fuel does not give better gas mileage.
  • Maintain proper air pressure on your tires.
  • Check your oil level.
  • Minimize costly repairs – follow the maintenance schedule in the owner's manual.
  • Have your brakes inspected at the first sign of trouble.
  • Rotating the tires will increase their life.
  • Change your own oil.
  • Keep a clean car now, it will trade in higher later.