Tips for budgeting monthly income.?

Question

I am a single mom of one and right now we are barely making it paycheck to paycheck....I am trying really hard not to start charging our everyday expenses--can you provide any tips for managing money?

Answer 1

Use an "envelope system"...

When you get paid, take enough money out of the bank to cover rent, utilities, and food (use however much you spent last month), and put the cash in envelopes labeled "rent", "utilities" and "food". These are the three things you MUST spend money on. Everything else is negotiable. Put the rest of your money in an "other" envelope.

At the end of the month, you'll know if you are eating too much, or if you need to move somewhere cheaper to live.

99% of "managing" money is just figuring out where it is going.

Best wishes!

Answer 2

First of all, give yourself credit for taking action BEFORE your financial situation gets out of hand.

If you're a single mom, you're probably not blowing your paycheck at the mall each week. Still, there are probably some hidden expenses you didn't realize that you had. I would track my money for a week to see exactly where it's going. Sometimes it can be a simple matter of making coffee at home instead of blowing $3 at Starbucks in the morning. (This is the case where $3 is not a big deal, but $3 every morning is $1,095- yikes!)

If you've taken a good, hard look at your budget, and there's not a place you can economize, you will need to find a way to make more money. I know this is going to be tough as a single mom, but be creative. If you're already spending time with your daughter on the weekend, could you babysit other kids at the same time?

Good luck!

Answer 3

Managing money and reducing monthly bills they go hand in hand. Your heating and cooling in winter keep the thermostat at 68 in summer the A/c at 74-76 if not in the room turn of the lights, if not in use turn off the TV, computer etc. When shopping stay away from the microwaveable easy meals, cook from scratch, cook enough for two or three meals then freeze them and use as needed. With gas so high plan your trips so you only have to go out once, if it is to the local convenience store and it is only a block or two away walk. In winter shrink wrap your windows to save on heat. Brown bag the lunches saves allot. Why spend 5-7 bucks on lunch when you can eat for $1 or less. Yard sales for clothes or in the internet there are many freecycle boards which are people giving things away. Every town has days when you are allowed to junk things like dressers, etc great way to pick up furniture for free. Do you really need the Nikes when Walmart has sneakers for less than $20? It comes down to making the most of the money you have, and reducing the amount you have to pay out.

Answer 4

The first thing to do is figure out where you are spending your money, and if it is all really necessary. Most people do not know where 30% of their income goes. Try to write down where every penny of your money goes for a month. Your bills are the easy ones, it is the convienence store and the vending machine type things that can slip your mind. Do it daily. Take 10 - 20 dollars and write down where and what you spent it on. At the end of the month you will have an Idea as to where you can start to cut some corners, if you can. It maybe something easy like lunches at work , or to many text messages.

Think of it like being on a diet, it is not the Lean Cuisine for lunch that put you off track. It is the candy bar when you pay for your gass or the handful of M&M's from your co-workers desk.

There are great tools for doing this like Money or Quicken for your computer.

Answer 5

Check with United Way. They may have a budget counseling agency they can recommend that can look at your income, expenses, and find ways to help you pinch pennies.

In food shopping, buy store brands whenever possible. Alot of them are made by major manufacturers anyway. Shop the perimeter of the grocery store and make meals homemade. It's not difficult and it's less expensive. Ask the meat department when meat goes on sale. Some stores mark down items soon to expire at certain times of day. I have never once bought a spoiled product that way.

Shop thrift shops for clothes. Oftentimes there are new or barely worn items. Car pool to work if possible, or take the bus. Turn lights off when you leave the room. Unplug cords that are not currently being used, for example, don't leave your cellphone charger plugged in all the time. Set the air as high as you can stand it. Repair leaky faucets or toilets. They sap water and run up your water bill.

Also, if you are not receiving child support, go to your state social services offices immediately. The father can be held liable for back support if he's not paying. If he is paying, check with a lawyer to see if you can get an increase based on the increase in costs for products and services your child uses, such as clothing, health care, school supplies, etc. Check with the local bar association to see if there's anyone that provides free or low-cost consultations.

Answer 6

Like someone else said. Use the "envelopes" system of budgeting. I've been using it successfully for the last 2 years, and I have yet to go out of budget once I've allocated my expenses to the various accounts. I only use "left over" money for fun. The program that I use is called, simply, "Budget" by Snowmint Creative Solutions. I promise you, using this system you'll never wonder how much you have to spend on any expense category again.

Answer 7

I'm a mom of 5 small girls. I find alot of the expense is food. I take alot of handmedowns for food and clothes and whatever else I can. It has saved us alot of money over the years. We don't have cable which saves us money and helps keep alot of the bad influence of media out of our house. We listen to the radio for entertainment and news, our collection of music, and watch DVD's instead. For food.... I try to be aware of all the sales that are on at different stores ... but don't run around to 10 different ones at the same time. I'm realistic to try to get the best sales that would save me the most in the long run... would I end up spending more on the gas to get all of the savings.... then buy it at one store i'm already going to be at. Don't get namebrand if i don't have to. Avoid the impulse buying at the till. Put an upper limit on groceries and put the non-necessities at end of list and purchase them if I'm still under my upper limit. Being aware of where my spending today is going to put me financially next week, next month, next year.... if I continue on that habit of spending. I can see this with the program I use.... CalendarBudget.com
I live within my means (what I get paid) alot better when I see what my expenses are going to do to me in the future. Reward self for reaching certain mile stones. The quick foods (precooked fish, chicken strips, etc) cost alot more than trying to do it yourself). The Blog on CalendarBudget.com tells of a huge savings from buying cereal on sale. I'm that mom. Almost $600 savings getting 3 boxes of cereal for price of 1.

Answer 8

Start with how much your monthly bills are add them all up, then divide that by how many times you get paid in a month, this will equal how much you need to put back for the bills every time you get paid. and the rest of the check is for your spending money or what ever you please.