With 2012 just around the corner, take time to write down your goals and establish a budget for the new year. Here are five tips from CBS Money Watch to help you create a budget and keep on track with your spending for next year.
- Have a money buddy – A money buddy is someone who you can share your financial goals with. This person should be a frugal friend, who will help you stay on track, like a spouse, best friend, mother, or father.
- Have a money zone – This is a place in your home where you can go that is away from the clutter and has your financial to-dos and goals. It doesn’t need to be a big area, just maybe the end of a table with all your bills and pictures of your goals to motivate you to stay on track.
- Use automatic billing – For reoccurring bills, use the automatic withdrawal option for your monthly payments. Behavioral experts say that people who use this tool to pay their bills electronically, have better a mindset and better financial security.
- Use cash – While you’re out shopping, pay with cash. Americans can save anywhere from 12-18% of dollars when they pay with cash. The great thing about cash is that you stick to your budget because when it’s gone, it’s gone. Credit cards make it easy for you to splurge and go over your intended spending amount.
- Establish a rule of thumb about money- This rule of thumb would be like a benchmark that keeps you on your financial track. For example, set a spending limit by budget category. If you set a spending limit of $100 for household items, you and your partner will discuss it before spending more than $100 for household items. These benchmarks can help you avoid temptation because you are forced to discuss the cost before the purchase.
For more tips on how to save in 2012, view the entire video from CBS Money Watch here. Do you have any other ideas? Comment below!