Thursday, March 19, 2009

One BIG step

I guess before you get started in being frugal, it would be important to assess your finances.
For one month track every penny you spend. EVERY PENNY! Keep a notebook with you, be diligent in writing down your expenses. You may be surprised to see how much of your money is being wasted.
Next step would be to evaluate those expenses. Ask yourself "do I really need it?" If the answer is no, cut it out. Eliminate that expense. Do you really need to buy that new outfit? Do you really need to buy that book? Can the kids live without the latest greatest expensive toy?
Make a budget. My husband is a bit of a computer genius and has created an Excel spreadsheet that tracks our budget. However, there is also budgeting software out that can assist you as well. We didn't want to spend the money on the software so he created one himself.
The next big step is STICK TO YOUR BUDGET!! No matter what you've got to stick to it!
Not only will your budget allow you to see where your money is going but it is also a great tool to assist in getting out of debt.
Through using our budget, I have been able to eliminate our debt down to our mortgage, one car payment and some nominal medical bills.

I should note, that I am not a financial advisor, nor do I have a degree in finances or economics. I am merely sharing my experiences.

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