10 Ways to Improve Your Personal Budget

If you have been paying attention to the news, you already know that the country’s budget is in a sorry state, with trillions of dollars in debt and billion dollar deficits as far as the eye can see. But what about the state of your personal budget? Are you running your own deficits in the form of credit card or student loan debt? Are you living on borrowed time and simply hoping for the best?

There is not a lot you can do about the politicians in Washington and their free spending ways, but there is a lot you can do to control your personal budget. Here are 10 ways to improve your personal budget starting today. If all goes well, the spendthrifts in the halls of power may take notice and start to turn their own ship around.

1. Create a detailed budget.

Having a household budget is a vital first step, but not all budgets are the same. The more detailed your household spending plan, the more effective it can be.

2. Identify money leaks.

Once your budget is in place, use it to identify places where money is leaking out. From dinners out to that daily cup of coffee, cutting back on these unnecessary expenses will be good for your personal budget.

3. Negotiate lower prices on your monthly expenses.

You have more negotiating power than you realize, so talk to your cable provider, cell phone company and so on. You may be able to save hundreds of dollars a year – not bad for a couple of phone calls.

4. Invest in your career.

Your earning power can be your greatest asset, if you are willing to invest in it. Talk to your boss about attending night school or attending online classes that could enhance your career prospects and allow you to earn more money.

5. Consider a side hustle.

If your personal economy is running a monthly deficit, a side hustle could help you bridge the gap. There have never been more ways to make money online, and offline earning opportunities are nearly as plentiful.

6. Consolidate your debt.

If debt is ruining your personal economy, consolidation could make the burden easier to bear. Consolidating your debt into a lower interest rate loan could save you thousands of dollars a year and help you pay off your debt far faster.

7. Trim your taxes.

Every dollar you pay to the IRS is one less dollar you have to save and invest. Look for creative ways to trim your taxes, including upping your 401(k) plan contributions and setting up a health savings account to pay out-of-pocket medical expenses.

8. Make your home more energy efficient.

High utility bills could send your personal economy into a tailspin, so look for ways to improve energy efficiency around the home. From turning off the lights when you leave a room to sealing up the doors and windows, small changes could make a big difference.

9. Shop smart.

From the grocery store to the shopping mall, a little financial intelligence can go a long way. So clip coupons, sign up for loyalty rewards and seek out bargains whenever and wherever you can.

10. Impose a waiting period for major purchases.

If you want to avoid impulse buys and control your personal economy, try imposing a three-day waiting period. This simple strategy could save you hundreds – or even thousands – of dollars in unnecessary and ill-advised purchases.

You may not be able to control the economy of the country, but you can handle your personal economy in a more sustainable manner. If you are tired of running deficits and dealing with debt, the simple changes listed above can help you take control. i