5 Ways to Put Money BACK Into Your Pocket (Guest Post!)

Many of you have probably destroyed your pocketbook this month – with the Holidays, family appearances & the like, I know my budget is a tad out of whack too :)

Amber over at Credit Report has got some great information for you on how you can put some money back in your pocket – it’s not too late to start whippin’ your pocketbook back in shape – and a great time to get on track for the new year.

5 Ways to Put Money Back into Your Pocket

Saving money is on everyone’s mind in these hard economic times, and finding ways to put money back into your pocket is not really difficult, but it is something that you have to commit to! It’s something to put your mind to. Are you ready to take the plunge, and just say "NO" to something you really want?

This is the first step of many that will allow you to reach your goals, both long-term and short-term.

Here are 5 ways save money and put money back into your pocket.

1. Needs and Wants

When creating a plan to put money back in your pocket, you need to understand your needs and what triggers spending.  Shop therapy is no longer an option for most of us, so we need to rethink our spending habits.  In this tight economic time, we need to tighten up our purse strings and wallets and figure out where we want to be in a month, six months or a year from now.  You no longer have the luxury of living above your means.

2. Plan Carefully

You must realize that when you spend money on something you do not need, you create a wind fall that takes you further from your goal.  You need to change your mind-set and create new behaviors that put you on the right path to filling your pockets again!   Treat your household expenses like a business. Put everything in writing.  Include in your budget not just your household income and expenses. Also set both short-term goals and long-term goals.  Tracking your goals and keep your budget simple and realistic.

3. Understand your Expenses

Make sure you create goals that are attainable and begin small.  You need to budget in unexpected expenses like your car breaking down or unexpected medical bills.  Things happen. That’s life! You need to remember this, in order to keep on track.  You need to be flexible. Also, remember to be patient with yourself. Saving money does not happen in a day and your goals are attainable.  Understanding your expenses and creating realistic goals will help you achieve your end results, because life is not a straight line.

4. Living Within Your Means

Perhaps at one time you were able to purchase whatever caught your eye. Now, things are different.  The economy has changed the spending habits of everyone.  You need to understand that keeping up with the Jones is no longer an option for you.  Life is better off if you do not turn spending money into a competition, and if you understand that possessions come and go.  Tomorrow, you could lose everything, whether it means losing your job, home or possessions to fire.  Things happen and this will not line your pockets with money. It will only create stress, heartache and pain.  Be happy with where you are at and understand you need to live within your means in order to reach the goals you set out in your budget.

5. Implement Your Budget

Start putting money aside for that rainy day. Pay off your debt and you will add ten years to your life. You need to create a budget that you can live with, that will take into account emergency expenses and the unexpected.  The goal is to save money and put money back into your pocket.  Make the commitment and start creating your plan, because in the end, you will not be sorry. You will learn how to live again!  Just stay focused and on task  – making sure your goals are not out of your reach.  Build your savings, and remain realistic to put your budget plan in motion.  You will not be sorry and you may even surprise yourself!

Amber Martin loves living frugally, giving personal finance advice, and writes for creditreport.org.

Thanks Amber!