There have been mixed messages on the economy as of late. But whether things are getting worse or better it's still a good idea to be realistic in budgeting during tough times.
The experts of investor's business daily says the first step for each family is to list expenses. then each item should be categorized as urgent, important or entirely discretionary.
Now for the budget itself, the experts say you should set aside 10% of income for long term goals such as retirement.
70 %of income should go for regular living expenses. The final 20% should be a buffer fund.
The experts say cutting back on credit is the key to making a budget.
pay off credit cards as soon as possible beginning with the higher interest rate ones.
Dump the club memberships. golf, country club, swimming, what ever.
Find other ways of doing the same thing for less money.
Take fewer and shorter vacations.
dine out less often.
Insurance. shop around the for the best deal. you can save a ton of money.
Trim the cable t-v bill by going down a tier and skipping the pay per view movies and shows.
Go with a friend to a warehouse clubs and split the purchase. .
The savings are there if you look for them. and when the economy does turn around ... you'll be that much farther ahead in saving for the future.