Budget Step 2

Yes, I know Feb. is not over yet - but some people like to look ahead and some already know what their expenses are each month. So I will continue on and you can always check back at the end of the month.

Step 2:
- Go through your expenses and eliminate anything you don't really need or can live without.

No one likes this part - but it is crucial if you want to feel like you are in charge of your money. You don't have to completely deprive yourself. I'm not suggesting you never eat out or that you drop your cable/dish; however, there may be places where you can cut back.

Example:
- Check you cell phone bill - do you use all your minutes? Could you go on a cheaper plan?
- Do you need both a cell phone and landline?
- Check your cable/dish bill - do you have more channels than you really watch?
- Could you lower your thermostat in the winter and raise it in the summer? - just a couple degrees can make a difference in your bill.
- If you get coffee daily - could you live with a couple times a week and make the rest at home?
- If you use an automatic dvd delivery system - could you cancel and rent movies for a buck or free from Redbox instead?
- Did you realize how often you eat out - can you cut back a little?
- Buy more clothes than you thought? How about treating yourself only once or twice a month?

Some of these amounts may seem very small - but they add up and will make a BIG difference in your cash budget!!!

We did this very step when we began - and it hurt at first, but we really don't notice it now. The hardest thing for me to give up was my membership to Massage Envy, but when I really thought about it I realized I didn't use it as often as I thought I would and it really was a want and not a need. I don't feel deprived either - now when I want a massage I just work it into the budget and go enjoy - guilt free!!

Now - go attack that budget - where can you cut back?