Resolution Fail…Get Back on Track

January is in the books and you may have already gotten off track with your new year’s resolutions; dieting, exercising, budgeting, but it’s never too late to get back on track. A resolution fail usually occurs when we overestimate our will power and underestimate the dedication required to achieve our goals.

We are all different and while some tips and tricks work for me they may not work for you.  Since we each have unique aspects to our financial situations, there is no one solution that will work for everyone, but let’s look at some fundamentals for resolution success when it comes to your finances.

Evaluate Your Situation

One of the first steps you need to take is to make an honest assessment of where your money is going. One of the biggest downfalls for many of us comes, not necessarily in the big categories like transportation or housing, but in our incidental or discretionary spending such as:

• Dining out
• Coffee House coffee
• Lottery tickets
• Hobbies
• Pampering
• Designer clothes

You get the picture. If you’re not careful, you could easily squander a couple of hundred dollars each month, just by consistently spending a few extra dollars per day.  Track your spending for a month and see where your money is really going. There’s nothing on the list above that is necessary for survival, but eliminating any one of them may be the difference in allowing you to balance your budget.

Reduce Expenses

If you already have a budget great! But when’s the last time you updated it? Do you follow it? Having an outdated budget, no budget at all, or not following it can mean setting yourself up for financial disaster. If you need help getting started or want to make sure you have included all of your expenses use this budget planner as a guide.

Your regular expenses may change over time and should be re-evaluated periodically. Here are just a few to review:

• Utilities
• Transportation (gas, parking, bus, train)
• Housing (rent or mortgage)
• Grocery Bills
• Insurance

Although the items listed above are necessities and you can’t completely eliminate them from your budget, there are things you can do to try to reduce the impact of any increases.

Make Some Changes

Some may not be possible, but even making one of these changes may help you find extra cash in your budget.

• Utilities.  Run major appliances at “off peak” rate times, have your heating and air conditioning system tuned up, add insulation and weather-stripping.
• Transportation.  Carpool to work, combine errands, check with your employer about working 4 ten hour days or telecommuting.
• Housing.  Look into refinancing your mortgage (rates are really low right now), consider renting out a room, or consider renting a less expensive home.
• Grocery Bills.  Prepare most of your meals at home, shop with coupons, and search for recipes that help you stretch your grocery budget.
• Insurance.  Comparison shop at sites like www.esurance.com; see if you are eligible for group rates through your employer. See if there are discounts available for things like having a good driving record, or insuring your house and car through the same company.

Increasing Your Income

When facing a budget fail, it’s natural to first look at how you can cut expenses, but don’t rule out increasing your income as the solution to balancing your budget. Here are a few ideas to help you get started.

• Consider a career change.  You may be able to increase your income by getting a higher paying job. Do some investigative work and see how you may be able to use your skills to land a bigger paycheck.
• Ask for a Raise.  If you’ve been at your job for a while and gained some marketable skills, you may be entitled to a raise. Sites like Salary.com can give you an idea of what your skills might be worth to another employer and give you data to back up your case when talking to your employer
• Seek part time work.  Depending on your schedule and other commitments, maybe you could work extra hours in a retail store or restaurant.
• Sell unwanted items.  Many people supplement their income by cleaning out their closets, basements, attics and garages for items they no longer use, but may be valuable to someone else. Consider using EBay or Craigslist to sell your stuff.
• Rent out a room.  Taking in a boarder can add a steady income stream of a few hundred dollars each month.

Whether you decide to balance your budget by cutting costs or increasing your income, the important thing is to get started!

Have you experienced a resolution fail already this year, financial or otherwise?

This post was provided by Suzanne Cramer, we are honored to have her share with our Smart Money Chicks CommunitySuzanne is a certified credit counselor and a Social Media Specialist for CareOne Debt Relief Services. Suzanne writes for Divorce, Debt and Finances and A Straight Talk on Debt. Follow Suzanne on Twitter @ADivorcedMom  and @AskCareOne where she shares her insights on divorce and managing your finances.

Andrea

Andrea is the Chief Chick of Smart Money Chicks. After filing BK twice (once because she panicked, second time because the pro messed the first time up), she realized that it all could have been avoided if she understood more about how her Finances worked and the options available. At that point, she wanted to help as many as she could never make the same mistakes again. Our Promise is that all the content you read on here is created or edited by Andrea