Debt Management - Home Is Where The Money Is

In today's world, practically everyone is interested in having more money. Unfortunately, for too many folks it's become necessary just to make ends meet. Locating "extra" money is not as hard as it might seem, as long as you're looking in the right places.

When most people are looking for extra money, they try to figure out how to get more. Most people will work overtime, get a part time job, check out various money making ventures and even buy lottery tickets.

However, the best place to start is by looking at how you spend the money you already have. Many people can take anywhere from 10% to as much as 30% off of their spending by cutting frivolous purchases. The way to begin is by creating, then actually using, a budget.

When asking around, I've found very few people who create and use a written budget. In reality, there is little-to-no chance of being in control of your spending without using a budget.

The best way to start a budget is to begin with your regular monthly expenses. These would include such items as rent or mortgage, car loans, credit card payments and all other bills you pay regularly each month. Then you would account for your spending on such items as food, gas, prescriptions, etc. From there, you would add in other items such as car insurance, newspaper and magazine subscriptions and anything else that you pay quarterly, semi-annually, or annually and then calculate the monthly cost for those things.

Next, you need to account for all the other spending you do each month. So, for one month write down how every penny is spent. Now, this really is not as hard as you might think. Simply carry a small notebook and pen at all times and write down each purchase you make no matter how small or insignificant it may seem. It is in tracking this kind of spending where you'll find most of your potential savings.

Look over your spending in these areas and ask yourself it you really need or use all these things your hard earned money is going to. Do you really read that magazine or does it just sit on your coffee table until the next addition arrives? Do you use readily available coupons on the things you're already buying? If you carry a balance on your credit cards, are you make your payment as soon as the bill comes in or do you wait until it's close to the "due date"? That alone is one area where people fail reap huge savings.

If you're honest with yourself, you'll quickly discover the waste in your spending habits.

Finally, do you pay yourself first? "Do I what?!?" You're read that right. You should be paying yourself first every payday. It's the smartest way to build your savings. You can even start small with the extra saving you find in your budget. In a few short months you'll get used to not spending that extra money and you'll likely find in fairly easy to increase that savings amount.

If you have a computer you can easily set up a spreadsheet keep track of all these expenses, even if you don't, a hand written budget will work just as effectively. If you stick to it that is.

Get control of your spending and you'll find the "extra" cash you've been looking for.