How to Tighten Up Your Budget

In the current economy, everyone's working to stretch their pennies. Here are a few small steps you can take to track your expenses and learn to save:

Create an expense list
Make a list, starting with required monthly costs (like gas money, food costs, etc.) then add other expenditures, like movie tickets, clothes, etc. Keep track of how much you spend on each category monthly. Try to lower the non-required items in small ways like buying clothes on sale.

Money saving tips for you and your family At home:
.Install a programmable thermostat that flips the heat every morning, lowers the heat when people are at school/work.
.In the summer, turn off the A.C. when you’re not in the house.
.Install a low-flow shower to save on the water bill.
.Wash clothes in cold water rather than hot.
Transportation:
.Decrease amount of cars in the family. Is it necessary to have a his and hers, and kids cars?
.Make use of public transportation and if you can, walk.
Entertainment:
.Make restaurant outings occasional and a special treat.
.Rent DVDs and make popcorn at home for a cheaper movie-watching alternative to going to the theater.
.Get a library card and borrow books and videos from your local library – talk about cheap entertainment!
Purchases/Shopping
.Buy generic drugs.
.Use grocery store coupons and print coupons off the internet.
.Shop at thrift stores and consignment shops. Discount stores are good too, but thrift stores tend to have higher quality for low prices.

Finally, the most basic…put a small amount away each month. Opening a Savings Account is the best way to do this. An added incentive is that it earns a small amount of interest on your original deposit, and that can add up over time.

Smart Saving, Smart Spending

Learn to budget
You can make a budget to help you plan for saving some of your money. In a budget, you keep a record of the money you earn and the money you spend. Doing this will help you make sure you don’t spend more than you actually have.

Set goals
Imagine the one thing you want to buy –for example, a new mobile phone. Do some research to compare prices and make sure that you are getting a good deal. Work out how much you can save each week and how long it will take you to save for it. Be realistic –if you try to save more than is practical you will only get frustrated and disappointed when you don’t meet your target.

Open a savings account
There is no better time than now to start a savings account. There are plenty of banks to choose from and providing that you do your research first, you should be able to find the best bank for you. Even saving a small amount each month will add up over time.

Don’t carry all your money around with you
Budget how much money you need for a day and only put this in your wallet, plus an amount for emergencies.

Don’t substitute shopping for entertainment
You will save a lot more money if you stay away from shopping centers and markets as much as possible. This can be difficult in Phnom Penh so if you can’t avoid them then make sure to only take a small amount of money with you.

Resist temptation
Never make unnecessary purchases on impulse. Wait at least one week or perhaps until next pay day. Quite often, you’ll find the urge to buy has passed and you’ll have saved yourself some money by simply waiting.

Invite friends over instead of going out
Almost every activity at home is less expensive than going out. Try suggesting a dinner or home picnic, a DVD evening or dance party at your home. You’ll have so much fun that you can all take turns to be host.

Drink more water
Drinking clean water is incredibly good for your health and can also save you money! Firstly, it is cheaper than any other drink and secondly, a glass of water before a meal means that you are likely to eat less.

Manage your wardrobe
Buy clothes that mix and match well and you’ll not need nearly as many clothes. Buy classic pieces and then accessories smartly.

Encourage your friend to do less expensive activities
This can be a hard thing to do but can be great fun and you all save money. Go for a pushbike ride or a weekend picnic rather than paying for entertainment or meeting at a restaurant or ice-cream parlor.

Read more
Reading is one of the cheapest –and most beneficial –hobbies around. Spend some of your free time in a cozy place in your house, just reading away. You’ll learn something new, improve your reading ability, enjoy yourself, and not have to spend any of your hard-earned cash.