by Duane Kuehn

Created on: April 05, 2010

Money does not necessarily buy happiness. All the same, money does not force sadness upon one either.

Saving money demands that one cut expenses. This is best accomplished using a flexible budget plan. That word, “budget”, can bring tears to many eyes but do not freak-out, this flexible budgeting system is easy to do.

In making a budget, the first thing on the listing of bills should be oneself. Pretend you are a bill and pay that bill first. Even the first month you start, write yourself a check, even if it is only $5.00 or ten dollars and put it into your savings account.

Our long-term goal is to save at least 20% of every paycheck. Sounds like a whopping amount but you will find it not such a strain once you begin to see your expenditures next to your income and begin to make cuts. The smallest of cuts count and they will add up to larger sums.

One should never depend on retirement accounts through work benefits. Not because of such fiasco's as Enron, although that is certainly to be considered. If one looks around it is easy to see the many thousands of retirees now struggling to survive. What looked great 30 or 40 years ago is not so great today.

The majority of people in the United States of America live paycheck to paycheck, or more often they think they have to live paycheck to paycheck. One thing is to recognize that if one can “get by” paycheck to paycheck, you can save money paycheck to paycheck. It all has to do with priorities, stop working for someone else and work for yourself. Pay yourself out of every paycheck and that is the first check you write.

When making your budgeting lists, itemize as closely as possible what you purchase, pay and when you do so. This will make the cutting of expenses a lot easier and more effective.

Make a listing of your housing and utility costs. Rent, mortgage, electric, water, housing insurance, condominium/subdivision fees, telephone, etc. etc. This is your “housing overhead”. You must know what you are spending on each thing before you can begin to cut these expenses. Do not include food, detergents, car related costs, etc, on this list.

Make a list of your non-foodstuff household expenses. Things such as deodorant, soaps, hair products, etc. Lawn care items, a maid or butler salary, etc, go here. This is your “other household” expense listing.

Make a list of work related items. These include whatever is pertinent to your situation and your job; public transit fares,

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