Money And You: Happily Ever After

Dealing with money is an inescapable fact of life. This is why it is crucial that you are in control of your finances and educate yourself on the subject. Read this article to find out more about managing your finances.

Your budget must be based on how much your income and expenses are. To determine how much you and your partner earn, combine the amounts you earn after payroll deductions for taxes and insurance. You should include every way you make money, including part-time jobs and rental incomes. The amount spent every month should not exceed your total income.

Next, total up all of your expenses. Your list of expenditures should include what you pay in utilities and insurance, as well as money you spend on everyday things. Be sure not to omit anything. Even daily and weekly expenses on groceries, restaurants, and leisure should be included. The detail level of your list should be very thorough.

It is important to document and examine your budget to see exactly what your expenses are, and where your money is going. There will most likely be places where you can save money. For example, can you pack your lunch instead of buying it? Is eating at home an option rather than going to a restaurant? Do you really need to stop for food on the way to work? Question each and every expense and look for opportunities to cut back.

If your utility bills are excessive, make some energy-efficient updates to your home. To reduce cooling and heating expenses, consider installing weatherized windows. If you replace your old hot water heater with an energy-efficient model, you can save money on energy costs and lower your home's power usage. If you want to lower the cost of your water bill, fix any leaks in your pipes, and do not run the dishwasher if it is not full. Simple changes like this can save you money over time.

A new breed of appliances dubbed "energy smart" can bring down that electricity bill in a hurry, quickly recouping the money you spent on replacing your outdated models. Be sure to unplug appliances you aren't using. This is doubly true of appliances equipped with a constantly burning indicator light. Indicator lights can use lots of energy as time passes.

Having your roof replaced or adding additional insulation to your attic can net you a huge upgrade on the energy efficiency of your home. There may be tax incentives if you do this, and you can also save on your heating and cooling costs.

Following these tips should help you keep track of your finances and help balance your budget. While initially expensive, the money you spent on new, energy-efficent appliances will more than replenish itself. You will see smaller water and electric bills each month, which can replace the money you spent on the appliances in the first place. You will be in control of your finances in the future.