Determine Your Financial Priorities and Develop a Solid Spending Plan
When I tell people that I don’t have cable, and I haven’t had it in more than two years people think I am insane. I just don’t think I watch enough television to pay between thirty to more than $100 a month worth it. The only time I watch television is Sunday night to watch the Simpsons on Fox, which is free. The last time I had cable the bill was more than $150, of course, it included premium channels, DVR recorder, and Internet. I was irritated to pay that much for services, and because it was a bundle deal, reducing services wouldn’t help much to bring the bill down. I said to myself I have better things to spend $150 dollars a month on. I have never looked back; television just isn’t a priority for me.
If you are not in a financial crisis but just lack budgeting skills, it is time to ask yourself a few questions: What are your priorities? Where are you able to cut unnecessary expenses? What are your financial goals? You may not have to forgo cable, Internet or cell phones, but deciding what expenses are important to you can help determine what you can eliminate to reach your financial goals. Maybe you can cut back or eliminate dinners out. The key is to cut back on things you are paying too much for or things that you are paying for and not using. If you are coming up short at the end of the month, it is time really evaluate where your money is going.
The biggest necessity most people spend money on is food. To save on food, use coupons, or buy in bulk at the grocery store. Another way to cut food expenses temporarily is to eat simply. I declare pasta week at my house quite often. For example, I can make Pasta Fagioli at home (beans 60 cents, pasta 80 cents, tomato paste 60 cents with olive oil, garlic and Italian seasoning already stocked in the pantry) for a mere $2. It makes eight servings at only 25 cents a serving. I also have leftovers that can last anywhere from two to three days. It’s healthy, it tastes good, and it’s dirt cheap! If you don’t want to forgo the meat buy a whole chicken instead of breast pieces. Have it for dinner and then use the leftovers to make chicken soup. Getting creative in the kitchen and working with minimal ingredients is a must. You may just decide creating recipes is a lot of fun, too.
If cutting back on your monthly expenses is going to do little to improve your situation, it may be time to take more drastic measures. As a counselor, I am shocked by how many people include cable, internet, and cell phones as part of their utilities. If you are falling behind on mortgage payments, facing garnishment, or unemployed, it is time to understand what your basic necessities really are. Basic necessities include water, food, shelter, healthcare, an emergency phone (lifeline, available for less than twenty dollars a month through your phone company) and electricity; not cable, internet, and cell phones. Cutting out these extra expenses which have become everyday luxuries may make more money available for paying down debt, or simply keeping your bills current. If you are facing foreclosure, or garnishment that is when it is time to eliminate everything you possibly can. No, it isn’t going to be pleasant, but keep in mind the situation is only temporary.
Creating a monthly spending plan that allows you to live within your means is vital to being financially healthy. It can also help you accomplish your financial goals. Do you want to build an emergency savings account? Would you like to contribute more to your retirement account? Would like to start saving for a down payment for a house or a car? Do you want to eliminate your debt as quickly as possible? The first step to creating a spending plan is to determine what you’re long-term and short-term financial goals are.
The next step is to figure out how much monthly income is available, and determine what expenses are important to you, while still putting money towards your goals. A goal can help you stay focused and make a spending plan feel more like a step in the process to achieving your goals. The dreaded word budget makes most people feel as if they are on a financial diet, but using a spending plan as a tool to achieve your goals will put you on the path to financial well-being.
Oh, and for your convenience, I have enclosed my grandmother’s Pasta Fagioli recipe:
2 tbs olive oil (to line bottom of pan)
Garlic to taste (Fresh or minced in the jar)
Italian Seasoning to taste
1 can Cannellini or Navy Beans
1 lb tiny pasta, like tubettini or small shells
1 can tomato paste
Parmesan Cheese to taste
3 tomato paste cans of water* or chicken broth if desired* (I just use water)
Put the water on to boil pasta. Cook according to package directions. Line the bottom of a second pan with olive oil. Add garlic, and Italian seasoning. Pour in Cannellini Beans (including bean water.) Stir in tomato paste. Then fill tomato paste can with water (or chicken broth) and pour into sauce mixture. Do this three times, or more to obtain a soup like consistency. Traditionally pasta fagioli is soup, but my grandmother had always made a thick sauce instead, but it can be made either way. Pour sauce over pasta. Put into serving bowls, sprinkle with parmesan cheese and enjoy!
About the Author: Jennifer Lane is a certified credit counselor and is taking questions I can answer in upcoming articles. Please feel free to e-mail your questions to me at jlane@debthelper.com.
