by Ann Major

Created on: January 14, 2008   Last Updated: February 04, 2011

My approach to household budgeting is a "no-fun, no nonsense" strategy which deals more with trying to make your dollar go a longer distance, than a mere technical allotment of monies. It has to do with a mindset and a modification of how we view the worth of our dollars.

These days, with the advent of credit cards, computers, and the internet, we no longer get to see our hard-earned money as tangible units, but rather as numbers that go up and down on a page or screen. When we spend money, the memory of having spent that amount is gone once a credit card has been swiped. Looking at an empty wallet where money used to be speaks volumes when we want to understand the concept of money and making a budget.

So, for all intensive purposes, from here on, convert what you have in terms of a household budget, to paper money that you can see, feel, and even smell. That is real money.

Remember, we are trying to pare away excessive expenditure and making our dollar stretch. First of all, look at your household budget as broken up into two parts, one where expenditures are fixed ( that means you spend practically the same amount every month), such as the mortgage, utilities, insurance, taxes, etc. The second which is flexible and you can choose to spend less or more, depending on your discipline. This is the part where you can try to conserve. They include clothing, food, entertainment, etc.

By nature, if you are an impulse buyer, a chronic hoarder, or an avid collector of things, examine all the material "stuff" and get rid of them.  Start with a clean slate, as they will give you more focus toward managing or setting up a budget.  Physical clutter also clutters the mind.  When hundreds and thousands of dollars have been spent on foolish things that are neither needed nor wanted, shows the folly of your ways.  Sell the unneeded stuff, stop picking up things every time they are on sale, and already, you will be saving and budgeting.  If you absolutely must buy something, for every item purchased, get rid of two old ones.

Guideline #1:
On pay day, leave in your account what is needed for fixed items as mentioned above. For each pay period, take out in cash, what is needed for sundries. Take several zip-lock bags, or envelopes and decide what you can afford to spend, and put specific amounts into each envelop. For instance, if you spend $500 in groceries each month, put $125 into the envelope marked for food for each week. Next, make a grocery list

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