Registrars Directory™

When trying to bring order to a household budget there are some bills that cannot be avoided, some where it is possible to economise and others that can be given up for the short or long term.

The trick to preparing a successful budget is learning which expenses fall into which category.

Removing all ‘unnecessary’ expenses from a budget can help to achieve savings or debt reduction goals, but it can also result in a feeling of deprivation. This can lead to budget ‘blow-outs’ on luxury or treat items to help relieve those feelings. This is counterproductive.

It is possible to have a strict budget with some allowance for occasional luxuries. Others treats can be replaced with free or much less expensive options.

Identifying Luxury Expenses

The first step is to recognise those purchases and expenses that can be removed from the budget. These may include:

• Expensive clothing and jewellery purchases

• Magazine subscriptions

• Pay TV

• Regular fast food or restaurant meals

• Regular book, CD or DVD purchases

• Regular outings to the cinema

Finding Alternatives

Now that the luxury items have been identified, it is time to find alternatives that won’t stretch the household budget to breaking point. Consider the following:

Books, Magazines, CDs and DVDs

• Join the local library and take advantage of the large collection of FREE books, magazines, CDs and DVDs that are available for loan. Many libraries have forms where it is possible to request specific magazines or books be purchased for the collection. It is often possible to have books transferred from another branch in the library network for a nominal fee.

• Form a bookclub or book/CD/DVD share system with friends. Everyone contributes 5 – 10 items to the collection (noting the owners name on the case or cover). All the members can contribute a small amount ($10 - $15) to be put towards purchasing new release books or CDs. Arrange for a get together every 2 – 4 weeks to swap items to ensure everyone gets an equal opportunity to enjoy favourite items.

• Get together with friends for a movie night at home. The cost of a DVD rental and pizza split between 4 – 6 friends is significantly less than a trip to the cinema. Even a DVD at home for the family can be fun with some homemade popcorn and a some ice-cream or other treat.

Clothing

• If there are several members of a group with similar size and style tastes, considering having a ‘clothes library’. Instead of purchasing a new item for a special event, review friends’ wardrobes to find something suitable. This works particularly well for formal wear items that are not worn frequently and maternity wear, which is also worn only for a limited time.

• Set up a clothes swap amongst friends or work associates. Each person brings clothing, shoes and accessories in good condition to the swap and can choose the items from those brought in by others. Keep any leftover items for the next swap or donate them to a charity. Most women have a variety of clothes in their wardrobe that they never wear but won’t throw away because they are ‘too good’. This is a great opportunity to clear those items out and replace them with something more useful at no cost.

Food

• Invite friends over for a meal instead of meeting at an expensive restaurant. Everyone contributes something – drinks, hors d’oeuvres , main or dessert.

• Halve the number of fast food or restaurant meals to halve the expense.

• Learn to make quick easy meals, such as home-made pizza, or have a weekly leftovers or cheese on toast night to ease the pressure on preparing evening meals.