Money Management Guide

Managing money can be difficult, especially for those of us on a tight budget, so here are a few ideas to help make it easier. Included below you will find a Quarterly Budget Worksheet and Tips for Stretching Your Dollars. If it seems like you spend more time worrying about money than you do enjoying it, take time out to examine your budget and develop a plan that works for you.

Develop your own personal budget to avoid the stress and inconvenience brought on by money problems. Use the Budget Worksheet included on this Web Page to plan your spending ahead of time. This is especially true for students, newly-married younsters, and people on a fixed income. However, all of us can benefit by learning to budget and staying aware of our income/expense circumstances and habits. After all, even gazillion-aires have to know when to say when -- that next mansion or plane or room of antiques may be just too much!

Your budget plan will succeed only if it reflects your personal needs and priorities. Make sure the money you spend provides the things that are most important to you.

Housing, food, and health care are the most necessary and most costly expenses you will be likely to encounter. You should make sure your income will cover these expenses before you consider luxury purchases. For some ideas about how to reduce your spending to meet your budget plan, read the money-saving tips that follow.

• For many people, it is very smart to just say "NO" to credit cards. Not only do you pay a finance charge, but you may be tempted to buy more than you can really afford. "Plastic money" is becoming more and more necessary as shopping online becomes a viable part of your activities, but rather than a credit card, try a debit card. If you feel you must have a credit card, don't purchase more than you can afford, and pay the balance each month. Better yet, save it for emergencies!
• Open a savings account and make regular deposits. When choosing a bank, compare monthly service charges and ask about any additional costs, such as buying checks, costs for overdrafts, and stop-payment orders.
• Avoid the Automated Teller Machine (ATM) fast-money trap. Try to limit the number of visits to the ATM. Some banks charge a service fee for each transaction, which can add up quickly. If you use the ATM, withdraw small amounts and don't forget to record the transactions in your checkbook.
• Balance your checkbook each month, your bank statement provides step-by-step instructions. If you need help, ask for customer assistance at your bank.

• Housing is usually one of, if not THE most expensive cost in your budget. Whether you rent or own, there are associated costs which will take you by surprise if you overlook them in your budget!
• If you own or plan to buy your house, there is of course the cost of the house and any insurance you elect or are required to have. The cost of houses are high, and the payments on the associated mortgages are high. There are many types of mortgage plans to choose from, so research them well, and know which ones will be best for your unique situation. Insurance is also required on mortgaged property, so be sure to take that into account. Property taxes are there too, and they go up each year, sometimes by a substantial amount as local governments look for ways to pay the ever-increasing bills they are faced with.
• If you rent, make sure you understand all the terms of your rental agreement. Rental arrangements should be in writing and you should read them carefully before signing. Be sure you know what is covered (and what is NOT) by the deposits you put down, as well as what it takes to get them back. Many landlords have a reputation for never returning a deposit, so shop wisely and keep all records and papers in a safe place.
• If you are single or otherwise could use a partner in your housing costs, find a roommate! Sharing your apartment with one or more roommates will substantially reduce your monthly expenses.
  

• Develop a weekly meal plan and shop with your plan to guide you.
• Pack your lunch and avoid fast food places. If you do eat out, use coupons and look for the best food at the most reasonable cost.
• Invest in a cookbook (thrift stores carry used ones) and prepare meals at home.
• Compare prices at different stores and use coupons.
• Buy house brands and generic products, they are generally less expensive.
• Buy bulk amounts of dry goods such as rice and flour.
• Buy fresh fruits and vegetables that are in season. Check out the various Farmers Markets in the surrounding communities.
• Consider joining a food co-op.
• Go food shopping with friends and roommates.
• Eat something before you go shopping, never shop for food on an empty stomach!

• Check into the variety of money-saving rate plans offered by telephone companies. Remember to figure installation costs into your budget.
• Find out how to connect to online services.
• Keep track of your long distance calls, and compare your records with your monthly bills. This is especially important if there are several roommates using the phone.
• If you purchase a cell phone, look for the best plan that works for you with the minutes you need. Beware of extra roaming charges, and early contract cancellation charges.
• Try writing letters and sending postcards through the U.S. mail, your family and friends will enjoy hearing from you! Send pictures too!
• To reduce your electric bill and save energy, turn off your lamps, television, and stereo when not in use. Set the thermostat at 78 in the summer and 68 in the winter to conserve energy.
• If you and your roommates are renting a house, ask if you will be required to pay the utilities (Water and Garbage Collection) as part of the rental agreement. Getting in the habit of taking shorter showers, not running the water when you brush your teeth, and setting the sprinkler on a timer are examples of budget-minded actions that will pay off in the long run.

• Bicycling and walking are the cheapest means of transportation in Davis. Buses also offer transportation, as do the mass transportation systems in many cities. Also, try something different, take the train! Amtrak offers service between many areas for a reasonable cost.
• Avoid the expensive habit of driving a car, if possible. The combination of high gasoline and oil costs, insurance, maintenance, and parking fees (and parking fines!) can make a car a major financial burden.

• Movies can be expensive, but many towns have small community theatres with excellent prices. The movies may not hit as new releases, but they will be there before long in many cases, so check out the opportunities around you for these.
• Another money-saver is to go to afternoon matinees rather than the evening extraveganzas. And many times buying tickets online will save you some money, too.
• A variety of music and drama events are offered throughout the year by many community theatre groups. Universities also offer excellent venues. Do some checking into what's available near you for these kind of activities.
• Participate in your favorite sports activity. Not only will you get exercise, but you will meet many new people and avoid spending money while you're out there working up a sweat!

• Shopping in thrift or consignment stores can be fun and you may find some real treasures! Avoid "dry-clean-only" clothing purchases.
• Factory discount outlets offer name brand, quality products at less than cost. If you are planning to drive to go shopping, take a few friends and share the cost of gas.

• To be at your best, it's important to take good care of yourself. With the cost of health insurance becoming a major expense, the value of a job with a company that provides some coverage is getting higher and higher. Also, be sure you have some money to budget for doctor and clinic needs (and the associated medicines.)

• If you have a dog or a cat or any other type of pet, or if you are considering adopting one, don't forget about this expense in your budget. Food and health care expenses for your pet can be considerable. Consider carefully whether you have sufficient time and money to spend on a pet before you take on this responsibility.

• Use the Quarterly Budget Worksheet to plan a budget. When budgeting for a quarter, be sure to allow for costs that occur monthly.
• After you've balanced your budget, begin keeping a detailed record of what you spend. Expenses for one quarter should show whether or not you are following your plan.
• If you would like to download the worksheet below as a Word doc, click HERE and it will download to your computer. You can right click and "Save Link As" if you want it to go somewhere other than your normal download location.