I want to be Frugal! Where do I start?

To effectively find the best way in which to devise a frugal plan, you need to first have a pulse check of your current finances.  It is all well and good to say, "I am not going to go out to dinner as often!" Or, "I am going to look for all the great deals!"  So what if after you have made those resolutions you aren't seeing any change in your checking account?  That is great that you found a package of a 100 rolls of toilet paper at Cosco's at a really great price.  But did it really save you any money?  We will look at buying in bulk as a Frugal option in another posting.

The best start is to create a budget.  Having a complete accounting of all of your monthly bills and compare it to the total of all sources of income will give you a pretty good idea at where you can start saving money.

You can create a simple budget by using a spreadsheet program like Microsoft's Excel.  I like using a spreadsheet, because it allows me to try different scenarios easily and then change them back.

Here, I created a spreadsheet with one column that lists all of the items that I pay out every month, as well as my estimated budget on certain items like Groceries, gas for my car, etc., which I then list the amounts in a second column.  I then calculate the total of all of my expenses under "Expense Total".

In another column, I then list all sources of income, and then list its total as "Income Total" underneath the "Expense Total".

I also created a separate column for "Actual".  I added this because this where I keep tract of what I actually spent monthly.  I add this total under the other totals.  I finally do two calculations:  I subtract Expense from Income, and that gives me my Net.  I then do a separate calculation that subtracts Actual from income.  This gives me a NET value of what I have left over after I have paid all of my bills.  This is where you begin to get creative by changing the values of some of your estimated expenses to see how if you cut cost in some items, or eliminate them entirely, affects your Net.

You can then also use the ACTUAL scenario to show you how you are progressing toward your goal.  When you see the amount of your Net increase in your month you'll see how your strategies are working, or where they are failing.

Hope this helps!

Greetings!

Today is my first post for the THE FRUGAL LIST.

Nearly 30 days ago, I was laid off from my job.  For a number of days I just sat in a funk, not knowing what to do.  We were already behind on certain bills, and what money that came in from my severance was quickly spent.  I applied for unemployment in the State of Massachusetts and was told that I would start receiving benefits within three weeks of my first filing for benefits, which is now two weeks overdue.  Until I begin receiving unemployment, we must solely rely on my wife's income.

We have had to take a hard look at our finances and search of ways for us to save money as well as seek for other avenues of cash and find away to start my own business from home.  Hence, the birth of THE FRUGAL LIST!  As I go through my journey, I wish to share the information that I have found to help others that are in the same position as I to make ends meat.

Wish me luck, and good luck!