Budgeting is boring; what are my other options?

I keep hearing that creating a budget will help me save but it’s boring and I don’t want to do it. What are my other options?

Don’t Knock It Till You’ve Tried It

Believe it or not, most people feel less stressed about money after they’ve put together a budget - at least now they know where the money is going instead of feeling out of control.  Budgeting is simply putting numbers in categories such as student loan payments, credit card payments, rent, food, entertainment, cable, cell phone and clothes. Look at your credit and debit card statements for the last three months and figure out where your money goes every month. You’ll at least have the numbers in front of you to decide if these are things you really need or want to stand for. If it’s too scary the first time let a friend help you. After all, misery loves company.

Put Away The Calculator

So a budget isn’t your thing. There are still other ways to make sure you don’t spend every last penny and all your credit. Set up a regular transfer from your checking account to a savings account for every time you get a paycheck. Start small – maybe $25 or $50 dollars a pop. The key here is to get started. As long as you can pay your bills and keep up the savings then you can get by without a budget. But if you find yourself using credit to cover the money you’re saving – whip out that calculator because you have lost no-budgeting privileges. 

Budgeting to Save Taxes

Nope, that’s not a typo. There are four things the government doesn’t want to pay for, so if you pay for them, the IRS will give you a tax break. These four things include your education, home, retirement and the medical expenses your insurance is too stingy to pay for. If budgeting is not your idea of a good time at least track your medical expenses. If your job offers a medical Flexible Spending Account (FSA) you can use it to save big money on your regular medical expenses (regular prescription co-pays, doctor and dentist visits, even Advil). Without a medical FSA you may still get a tax break. Besides, if you don’t know what you’re paying you could be paying too much – instead of happily squeezing your health insurance company for every penny it’s worth.

Our Ask the Expert for your money questions is Rebecca Schreiber, a Certified Financial Planner with Solid Ground Financial Planning. What questions do you have about handling your hard-earned money? Ask away!

Comments

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