Trimming

Now that we all have come down from our "High" from the holidays it is back to the "Grind". As we all know 2009 is marked as a year that will be tougher than any since the Great Depression. The beginning of this year brings many questions to mind when it comes to saving funds and preserving cashflow.

Recently my Wife and I re-visited our personal budget and realized we should do some "trimming". Although each of us is still employed we decided to make changes as we are unsure as to what the rest of 2009 will be like for our household. Being able to make decisions with a clear head allowed for a less stressful conversation and we made choices about our personal budget that are realistic and more importantly sustainable.

Everyone leads a different lifestyle and making general recommendations as to what to "trim" would be irresponsible. What I can say is that most of us can cut between 10-20% of our budget. The areas my Wife and I decided to cut back on was our entertainment and telecommunications/video categories. Entertainment for us consists of Dining Out, Movies, and Sporting Events. Telecommunications/Video consists of our cell phones, internet, and cable. Within our Entertainment budget we were able to reduce our spend on dining out. Instead of always meeting friends out for dinner we decided to start having informal dinner parties. Etiquette usually calls for those attending a persons home to bring something. Whether it is wine, dessert, or a dish complementing the main course it takes the stress off of the host and no one feels like they are overwhelmed financially. In the Telecommunication/Video we eliminated one of our data plans on our cell phones. Most of the usage was useless emails and surfing the internet when dull moments arose. Keeping one data plan made sense for the occasional directions from mapquest and looking up a phone number while we are out and about.

When trimming your budget start by reducing and not cutting all together. Like most things, quitting cold turkey is very hard and most likely will not last for an extended period of time. Start with things you know you can be disciplined about. If you enjoy going out and having drinks with your friends, but realize it can be expensive don't totally eliminate it. If you go out twice a week, maybe cut back to once a week.

When going through the exercise of going through your budget treat it like a beautiful Thanksgiving Day turkey. If you thinly carve the turkey the pieces will be palatable and people will enjoy. However, if you "Hack" at the turkey and take off huge chunks there may be bones in the pieces and people may choke. The same is with your budget! If you try to take off too much, you will choke.

Stay the course and realize a budget is a working document. You will always have to tweak it as life presents changes good or bad. Good Luck!

Stack your Chips-

King of Cash