The economy has been suffering, but you do not have to.
Making a budget of your expenses can show you just how your money is being spent, and this consciousness often reduces costs all by itself.
Budgets are the ultimate money tool, whether you're looking to see if you can afford a new computer or if you are just trying to get out of debt.
By showing you where your money is going, a budget can help you clean up your financial situation.
It can help you lower your electric bill or show that you spend too much going out to dinner.
If you have a messy financial situation, a budget is the first step in cleaning it up.
Budgets are pretty basic ideas.
A budget is a record of your income minus what you spend, or your expenses.
A positive number means you are financially stable, but a budget can still help you plan out your expenses and become even more so, while a negative number means you are spending money you technically do not have.
So the first step in creating your budget is making a list of all your expenses.
Make a note of things that are absolutely necessary and things that are not.
Necessities such as food, shelter, and transportation should be at the top your list, depending on your situation.
Don't forget all your occasional expenses, whether it's highway tolls or prescription costs.
Once you have added up all your expenses, subtract this number from your net income.
If you get a negative number, there are easy steps you can take to help get it back to positive.
Energy is one of the easiest places to start in lowering your expenditures.
Little things, such as unplugging your TV when no one is watching it or washing your clothes with cold water can help lower your electric bill.
Small changes such as these can add up quickly.
Just unplugging unused appliances has the potential to make drastic differences.
A plugged in appliance often leeches energy even while it is switched off, and this can negatively impact your electric bill.
By just unplugging it, or investing in a good power strip, you can reduce the occurrence of a leeching appliance.
Ask around and do a little research on the best energy providers.
Sometimes switching to a greener energy source can be cheaper for you and your family.
Food is a major monetary outflow that can really tax on your budget.
Meals out at restaurants and expensive drinks at bars can add up to be a major drain on your income.
To see how much you're spending on food costs, save your receipts from a week or two.
The results could be staggering.
Instead of buying meals at work, bring your own.
The cost of one purchased meal can often provide sandwiches for an entire week or two.
Give the generic brand a try.
More often than not, they are exactly the same, except for the generic costs less.
Pick up the Sunday newspaper and clip some coupons.
With a handful of coupons, your grocery bill can be drastically reduced.