Living within your budget.

Xmas is only 23 days away and you may be faced with mounting pressure to get your financial house in order before the festivities overwhelm you. How do you keep or get your finances under control when you don’t have a big enough income?

While first review your net income and your monthly expenses because this is the only way to understand your situation and take steps to fix it.

In our workshop on Financial Literacy for Seniors, we talk about budgeting. Making a budget is creating a plan for your money. The reason many of us get into trouble is that we don’t know where our money is being spent and how much we earn. By creating a budget, you will quickly see if you have all your bases covered.

What happens if you cannot pay all your bills with the income you are getting? This happens to many seniors who are used to a regular income and find when they retire, the income they have has dropped, but they have not changed their lifestyle.  There are some options available but knowing what how much money you need should be your priority. Doing nothing will only set you back further.

Unfortunately, life has cycles, some good some bad, you may find yourself in a bad situation, but it will not last.  We prosper, we fall behind, we prosper, life happens and we lose, then we win again. You are in control and what you do for yourself for financial stability is what allows you to win again. Here are some ideas to help you move back to the winning circle.

Communicate with Creditors

Do not ignore a bill until you have enough money to pay even the minimum amount on it. Contact your creditors and explain your situation. If you explain to them that you’re falling on hard times and not earning enough money but working to the budget and prioritize your bills and have an action plan (even if it is minimum payments) they most likely will be happy and you may not be subjected to nasty phone calls or emails demanding payment.

Lower Your Expenses

You don’t have enough money so you must sacrifice. For many of us, we spend most of our income on mortgage or rent. You may have to consider selling your house if you are renting you may consider getting a roommate or moving to a cheaper rental accommodation.  We should not be afraid of what will happen, we should be afraid of not taking action while we are able.

Make More Money

Earning more money may mean taking a second job. This income may make the difference between paying your debt off on time and making sure that you keep your roof over your head. You can go to the food bank if needed. No one is above struggling financially and you will do what you need to do to make sure you end up ahead.

Long-Term Plans

 Your short-term plan is to make ends meet and balance your budget. As a senior, you are on fixed-income.  There are people who have disabilities and for health reasons can’t get that second job however they find ways to earn a bit more on the side when they can. This is not easy, you may not like what you can and can’t do on a limited income, but once you figure out your situation you are taking the first step to improve.

Low Cost Ways to Have Fun

Recession in the economy or a personal recession, does not mean boredom for your family.  You do not have to slump down at home trying to sleep the recession away when you can still have fun without having to spend too much. Here are some ways to keep your family entertained without putting a big dent to your budget.

Grow a Green Thumb – Low Cost Way to Have Fun and Have Food
Gardening is one of the most productive and yet less-costly ways to entertain oneself. If you have the kids helping, you can double the fun. Just as long as you do not use high-maintenance, which are also usually expensive plants, you can have a ball growing vegetables and fruits that you can also use to make your own meals. This means more savings for your family!

Watch your Local Sports Team – Inexpensive Way to Support your Local Team
Kids enjoy watching sports. Support your local sports team by adding yourself and your kid as part of its seated cheering squad.

Go to community events – Low Cost Activity to Enjoy your Neighborhood’s Events
Your local local colleges, city bulletin boards, newspaper listings, and libraries usually post special entertainment events that you can attend for free.

Host a Garage Sale – Fun and Inexpensive Way to Earn Extra Income
It’s high time to get rid of your old bags that only gather dust in your closet. And what better way to get rid of it than to sell it in a garage sale. A garage sale is not just a way to earn you extra money, it can be highly entertaining, too. Getting the whole family to participate, from gathering the items, pricing and selling them can be a whole bunch of fun.

Backyard Camping – Go Cheap, Local and Fun
You do not need to travel miles to be able to enjoy camping.  Your backyard can be one cheaper and less-stressful place to have camping with your family or friends. Just make sure to make the ambience conducive to camping. If you want, you can even invite your nosy neighbors to join you.

Purchase annual passes – Low Cost Amusement
Amusement and water parks usually offer annual tickets that do not cost much. Take advantage of these offers if your family is into this type of entertainment.

Enjoy YouTube – Free Techie Fun
The Internet technology now offers free entertainment via online videos. YouTube is the most popular source of these videos. You can also watch movies through other free movie sites.

Belt it out – Enjoy and Learn while Saving Money
If you do not have a karaoke microphone, you can borrow from your friends. There is also an online version of karaoke that you can also use as a form of free entertainment.

Play Online Games – Not Just for Kids but for Your Wallet’s Health, too
There are millions of free online games that you can enjoy with your kids. Whether you want to play word games or puzzle games, the variety of online games is endless.

Set a Family Day – Regular Way to Save Money and Have Fun
Whether you play scrabble, go camping in your backyard, or watch online videos, setting a regular family day doing these simple and yet fun activities will condition your family to look forward to less-expensive ways of having fun. It’s a great way to bond with your family members, as well.

Everyone can save on a shoestring, its a mater of attitude

Believe it or not, how much you save has little to do with how much you make and studies have proven this! It is time to put away the excuses; here’s a roadmap for finding money you didn’t even know you had.

That One Simple Word—Savings

When you hear that one, simple word, do you feel a deep sense of guilt? Of course, you do – we all do. That is because, like most Americans, 75% of respondents said they knew that their savings, targeted for retirement, were insufficient.

That’s cause for distress, perhaps, but not nearly as remarkable as the discovery that how much you save now has very little to do with how rich you are, today. This is so true in fact, that the middle-income earners managed to save less than the lower-income earners in that same study. Now this is remarkable when you think about it. Those with less saved more! What is the secret to their savings success?

For those of us who scrimp and save endlessly and with so little to show for it, these statistics are both annoying and embarrassing! It also means you have no excuse for inadequate savings.

The bottom line here is this: You just have to save, regardless! That means for every $10 you earn, you MUST sock away at least $1 in savings. Does not sound to be too difficult, right? WRONG!

UNLESS you have an iron clad savings plan, you will not save a single red cent! The trick is in the purpose and the plan

· Thrifty Ways to Save Money

Saving for an emergency need not be a chore when you are making a good effort to put money aside constantly. Be in a mood of saving and watch as that bank account accumulates.

·       Instead of buying a new DVD, save money by trading with family and friends. Once a month do the rounds and before you know it, you will have a new library of good movies to enjoy.

·       Plant a small garden each spring, with just the vegetables that you really like. Even a small effort every day can save you dollars usually spent on fresh vegetables at the produce market.

·       Buy your bread and other bakery items at the local thrift bread store.

·       Check your local library for the newest DVD/video releases and then rent three for $2.00 for two days.

·       Read your local newspapers online.

·       Search eBay for big ticket items and then save literally hundreds on computers, DVD players, etc.

·       Keep track of the cost of items you buy a lot and get them at the cheapest store, like cleaning supplies at Family Dollar, pet food at Wal-Mart, etc.

·       Make a conscious effort to combine tasks that require driving some place, so you will get the most out of your mileage.

·       For your friends and family who do not feel slighted by this, send e-mail cards for holidays, birthdays and as thank you cards. In addition, e-mail family and friends who live far away, instead of calling long distance.

·       Get rid of your monthly fee long distance service, and just use an access code when you do call, which is infrequently anyway and inexpensive.

·       Decide which satellite channels you could do without, and give up a few shows you really like. You can save more than $20.00 on your monthly bill.

·       When you buy vegetables, fruits and bread at the grocery store check the reduced-for-quick-sale carts and shelves first.

·       Change the oil in your vehicles yourself.

·       Save money when buying clothes for the following year at the end of the season  during the off season. You can get great mark down prices.

·       Each evening take the spare change from your pockets or periodically clean out your purse and toss the coins aside. Never take any money back until the end of the year. Then take all of the coins to the bank and exchange them for cash. You’ll be surprised to find out they’ve added up to $50, $100 or even $200.

·       “Take care of your cents, and then your dollars will take care of themselves.”

·       Bike to work in good weather instead of driving to save on gas.

·       Eat a few hearty vegetarian meals each week.

·       Shop garage sales for a great source of household items, books, clothing, and furniture.

·       Don’t buy bottled water! Buy a good water-filter and drink tap water.

·       By the end of each day put all of your change into an empty coffee can. Then roll coins as you watch TV or listen to the radio. This will add up to hundreds of dollars very quickly and gives you something good to do with your hands to relax.