During these difficult economic times, every penny counts, and we’re stretching our paychecks as far as they can possibly go. Each time you rework your family budget, you probably find yourself wishing there was more money available. But guess what? There can be, and all it takes is a little more discipline.

Round up your checkbook. Each time you write a check or use your debit card for a purchase (i.e. grocery store, pharmacy, etc.), round up the purchase to the nearest dollar when subtracting it from your existing balance. By making this small change in how you track your bank balance, you are saving money by not spending the difference. At the end of the month, compare your checkbook register against your online bank account (or paper statement, depending on how you communicate with your bank)- you will most likely have saved anywhere from $10-20. Transfer that money directly into your savings account (or other family fund), and do the same the next month. You’d be surprised how easy it is to save money this way.

Increase your paycheck. No, we’re not talking about asking your boss for a raise or expecting you to work more overtime shifts. Meet with your human resource representative and ask to change your exemption status on your tax forms. This change will dictate that federal taxes will not be taken out of your paycheck, which could put as much as 15% back into your pocket, depending on which tax bracket your salary falls into. However, you should understand that this doesn’t mean you will be exempt from paying taxes. Instead, you will owe money at the end of the year, although you can invest the extra cash in the meantime. If you estimate your taxes to be somewhere around $5,000 and put that money in a long term savings plan that yields 4%, you will come out with $200 after paying federal taxes.

Review your work. It’s important to regularly check your monthly bills and expenses against your family budget worksheet, and note the difference (if any) between what was allocated and what was actually spent. For any expenses that come in under the allocated amount, transfer the difference into your family savings account. Getting into this habit will ensure you stay familiar with service costs and help you flag opportunities to cut costs in the future.

Count your change. Over the course of a month, have family members deposit any loose coins found in your car, the pockets of clothing, the sidewalks, etc. into a large jar. At the end of the month, teach your children how to roll change and let the older ones count the final total. On average, you can find an additional $20/month this way!

Posted in Home Budget

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