Beat And Battered

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Tired of the monthly budget? Want to something a little out of the ordinary when it comes to saving money or reducing your debt? I just went for a three hour drive today on my way to a business trip and came up with this idea. What if there was some type of incentive every month for you to save money, wouldn’t it make it much more fun? So what’s fun and different about this idea you ask?

First, you’ll need to do a little research into your budget. If you’ve kept a good budget then this shouldn’t be too difficult. Break down your budget into three categories:

1. Completely Mandatory - This category contains all the necessary bills such as home, auto loans, electric, water, credit cards, etc. This does not include cable, phone or internet.
2. Somewhat Mandatory - This category will include bills such as cable, phone, and internet services. It will also include grocery money, clothing money, etc. Things that you need but you could probably reduct the cost somewhat.
3. Not Necessary - Finally the not necessary category includes entertainment money, and blow money. Money that if you didn’t have for a month you could live without. You really don’t need to go to the movies or spend $60 on dinner!

Now here is where the contest comes in and your reward. Total up the amounts from each category based on your last months bills. For example:

1. Necessary: Electric $150, Water $35, Home $1000, Auto $400 total of $1585.
2. Somewhat: Cable $40, Phone $35, Internet $40, Grocery : $400, Clothing $250, total of $765.
3. Not: Entertainment $400, Blow $100, total of $500.

Now our goal is to reduce each category by a small amount each month paying down debt and rewarding ourselves in the process. Reducing all three categories may leave a good deal of leftover money. Use half of this money on paying down debt and the other half to spend on some type of reward. Something fun you normally wouldn’t buy yourself.

First, those necessary bills you can reduce your electric and water bills by simply being aware of the resources you are using. Turning off lights when you leave rooms, take showers instead of a baths, take shorter showers than usual, use lamps instead of overhead lights, don’t leave the water on while brushing your teeth or shaving, etc. As for that auto payment you may want to do something extreme like sell the car and buy something with cash you have on hand or finance something for half of your current payment. You can find decent cars for $5,000 or even less!

Second, those somewhat necessary bills can save us some major cash! Drop any premium channels from your cable service. You may be able to reduce your internet service by switching from cable to DSL or from DLS to cable. Drop that lan line phone service if everybody has a cell phone with enough minutes. Clothing is necessary, but name brand clothing is not necessary. Watch for sales and check out consignment shops for cheaper clothes. Groceries can also be a good money saver. Use those coupons you always toss out with the trash. Buy generic foods when possible. I’ve read multiple articles on saving hundreds of dollars per month on your grocery bill! It’s possible to save some good money in this category.

Finally, the enertainment/blow category can be your biggest savings area. Eating out is just not necessary and although enertainment is necessary it doesn’t always have to cost money. Limit eating out to a minimum. If you must eat out order water or get takeout and bring it home. Go to the park instead of the movies. Go on picnics and hikes instead of amusement parks. There are hundreds of ways to save money on enertainment.

Here is a revised sample budget and what can be done with the extra money.

1. Necessary: Electric $145 (old $150), Water $31(old $35), Home $1000 (old $1000), Auto $175 (old $400) total of $1351 (old $1585). SAVINGS OF $234.
2. Somewhat: Cable $40 (old $40), Phone $0 (old $35), Internet $35 DSL (old $40), Grocery : $360 (old $400), Clothing $225 (old $250), total of $660 (old $765), SAVINGS OF $105.
3. Not: Entertainment $350 (old $400), Blow $80 (old $100), total of $430, SAVINGS OF $70. 

In our sample budget we saved a total of $409!!! We didn’t make huge sacrafices just small sacrafices in each category. Now take the $409 and pay $200 toward one of your high interest rate debts and take the other $209 and spend it on something nice for yourself. You may even want to save the $209 for next month and pick up something much nicer. Reward yourself for saving money and it will be much more fun!

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