When you wing it every month without a budget in mind, you’re passing up opportunities to slash unnecessary costs and save money. A few minutes spent creating a budget now can save you big money later. Don’t neglect your short-term goals either. Your financial goals can include quick reductions on utility bills, cable bills, and other expenses that are keeping you from saving more money each month. You might not be able to pay off all of your debt today, but you can create a realistic plan to work toward paying it off. Your budget will show you where your money is being squandered with high interest charges and unnecessary expenses so you can then identify where your money truly needs to go. Choosing the right filing status, studying current tax rules on claiming dependents, claiming the Child Tax Credit, and taking advantage of child care and dependent care expenses are a few of the tax rules you should be aware of every year when it’s time to file. People overspend on taxes every year. Make sure you’re not being overly generous to Uncle Sam. Life insurance and a last will and testament can also shield your family from financial hardship if something should happen to you or your spouse. The benefits and peace of mind of having them in place often outweigh the costs. Think outside the grocery store to find even more savings. “Kids eat free” deals at restaurants are also budget-friendly options that give you a break from the kitchen without draining your bank account. If you discover that your budget just won’t allow your family to travel, plan a staycation that keeps everyone close to home but still has room for day trips and fun activities to fit any budget.
