When was the last time you took a good look at your personal money finance? I asked this question to some of my friends and I was surprised to hear their answers.

Most of them were not in the habit of analyzing their personal money finance and some of them were so deep in debt that a cursory glance at their personal budget would give them an instant heart attack. The question is – are you one of them?

Why Is Money Budgeting So Important?

Let us face it. We live in a credit crunched world today. We live at a time when the experts around us scare the life out of us by mentioning terms like depression, meltdown, and recession. What this ultimately means is that you need to watch your personal money finance and the way you spend money. You should make sure you live within your means, start saving as much as you can, and stay out of debt. How do you do that? Here are some saving money tips to get started with.

First of all, develop the habit of writing down your income and track expenses. Keep a tab on your personal money finance all the time. By writing down your income and your money expenses, you get to know how much you spend on your basic needs, how much you’re spending on important things, and how much you’re spending on totally unnecessary items. Once you find this out, you can easily find a way to stop the unnecessary personal expenses.

You can find a lot of experts suggesting some sort of home budget software to calculate your monthly expenses. My take on this issue is simple – if you can afford it, go for the home financial software, it will keep track of your personal money finance a lot easier and it will save you time. If not, a good old pencil and paper or a personal budget spreadsheet will do just fine.

The most important thing is that you should write everything down. Even if you spend $10 on a cup of latte, make sure you write it down. Do this for one month. At the end of the month, take a good look at each home expense and find out which was necessary and which was unnecessary.

Inexpensive Ideas for Your Monthly Budgets

o If you are spending on coffee $10 a day at Starbucks, stop doing it today. Instead, buy a coffee maker. This way, you get to drink coffee any time you want, anywhere you want. Most importantly, you’d spend less, a significantly less, than drinking out.

o If your spouse has a thing for designer wear, ask her to switch to normal clothes. Designer wear cost a lot of money and it is definitely not worth paying it at a time when you are struggling to make ends meet.

o If you spend money eating out often, stop it now. Homemade food is healthy, tasty, and way cheaper. This is one of the simplest inexpensive ideas you can follow to cut your home expenses.

o Pay off your credit card debt and stop using it for a month. If you can’t pay cash and buy something, don’t buy it. Learn to live frugally. Initially, it will be difficult. But you’ll get used to it in a few months.

o Buy in bulk. Getting a 12 pack for $5 is way cheaper than buying a single soda can for $1.

o Start saving because not saving and keeping track of your personal money finance will cost you more in the end. Even if it is a very little amount each month, it will continue to grow and, before you know it, you will have a substantial amount in your savings account. Keep it safe for a rainy day.

These are some of the simple ideas that can help you cut down your family expenses. Live well within your means, say no to unnecessary expenses, and improve your personal money finance.