There are many people in this world who think that the only way to save money and have any hope at being rich is to have a strict budget and to live by that budget every month. This may make a person try and cut costs on things that might actually save them money in the long run. You might be asking yourself what I am talking about but if you read on into this article you will see what I mean. Budgets can actually cost you money rather than save you money.
Cutting Back On You Television Costs
When you are making a budget one of the first things that is usually going to get cut out of the spending plan is cable or satellite television. This is because to have the option of watching two hundred channels at any given point in time costs money. However what many of us do not think about is that if you drop the two hundred channels out of your budget you might find yourself saving a few hundred dollars each year but you will be spending more money doing other things to keep your family entertained. The cost of taking your family on an outing to the movies, museum, aquariums or virtually anything else is often going to cost you double what the television programming would cost you.
So What Happens To The Monthly Budget
If you find that you are considering that cutting expenses from the monthly budget could be the answer to no longer living paycheck to paycheck you might want to think again. What people often forget is that when looking at the cash flow equation there are two sides to the formula not just the spending side. You also need to look at the income side. So you will not only need to cut your expenses but also will need to increase your income. To get the financial peace that many people look forward to having you have to get the amount of income you have increased. This might involve getting a second source of income such as another job. This does not mean that you need to start a second career but what it does mean is that often times a part time job, not even equaling forty hours a week, can lessen the burden of the amount of income that is lacking in your budget. Often times just doing odd jobs can give you the financial freedom of living within your means and not having to cut things out of your budget.
Can Clipping Coupons Help
Everyone has seen all of the crazy people on the reality television shows that are clipping coupons and saving thousands of dollars per year when they shop. This is not the lifestyle for everyone. Those people make it a full time job to clip the coupons, organize them and then shop with them. Must of us do not have that kind of time. Therefore is you are looking to become rich off of coupon clipping you are barking up the wrong tree. It is better to make a list of items you need before you go grocery shopping and only purchase what you need. Do not fall off of the list. You will end up spending more than you bargained for.
If you are wanting to become rich this will not happen over night and it surely will not happen simply because you are living on a budget. The amount of money spent will still be the same amount as well as the amount of money coming in. What you need to do is increase the amount of money being earned and then you might have the option of becoming rich if you are smart with your dollars.
Photo credits to : DonkeyHotey