Forget the Budget: Create a Spending Plan (Video)

Nobody likes to have to make a budget, but that doesn’t mean you can’t enjoy making a spending plan. List everything you spend you money on each month. Have your family members do the same. It can be a family game. What are the things they want to keep? What can they do without? Erica Sandberg explains how to set up a spending plan by focusing on key areas.

1. Groceries:
   • Try eating more vegetarian meals because meat is expensive.
   • You should also reduce on eating out, especially fast foods. It adds up.
   • Another good idea is to go online shopping. It helps you stick to your shopping plan and usually provide extra discounts and coupons.
2. Services:
   • If you’re paying for cable TV, Internet and cell phone bills, try bundling them together to cut down on costs.
   • If you have a phone landline, you might want to consider cutting it. You could save up to $100.
3. Entertainment:
   • Forget about going out.
   • We all spend a fortune on entertainment, but you should also remember that there are places where you can go that won’t cost you a dime. Your local library is a good source for books, movies, CDs, games, and more. The best part is it’s all free.
4. Gifts:
   • Skip gift cards. People who give gift cards tend to bump up the dollar amounts to avoid seeming cheap. Plus, you can’t get bargains when buying gift cards.
5. Insurance:
   • Make sure you shop around. You could be eligible for special rates and not even know.
6. Wants vs. Needs:
   • Analyze each purchase you make to determine what’s important and what you probably don’t need. This way, you can keep more money in your wallet.
7. Credit Cards:
   • Forget the credit cards. Credit cards are great, but we do have a tendency to overspend when using them. Always remember, try to keep debt at zero.