The Frugal Family: Budgeting Techniques to Help Maximize Your Money

This economy has done a number on many families. It seems that unemployment has touched everyone in some way and for longer periods than ever before. The economy seems to be recovering, but after how the past two years have gone, most of us are still wary.

Even before the economic downturn, my family managed to survive on a grocery budget of $50 a week. My husband was a student and in order to avoid future debt, we chose to take out only as much loan money as needed to pay for tuition while we worked to pay for our living expenses. I'm not entirely sure what all contributed to our success, but there were some key things besides coupon clipping that were helpful.

Saving money starts with budgeting. Go ahead and groan; I know budgeting isn't fun. Honestly, I hate budgeting but I also feel that when money is tight, it's essential. Keep in mind that if you find yourself overspending every month, your budget isn't realistic. Unless you are one of those rare individuals with an iron will, your budgeting efforts will fail if you don't reward yourself for sticking to the plan. Build rewards into your budget, whether it's a bag of candy or a night out at the movies once a month, so that you aren't so focused on what you don't have and end up feeling hopeless about your money situation.

To help you stick to your budget, avoid temptation. It's amazing to me how many times I've stepped into Target to buy only a few things and leave $100+ poorer. I now avoid going to stores as much as possible because I have so much trouble resisting an awesome deal. The bottom line is that if I don't go into the store, I wouldn't even think of buying half the things that end up in my cart. No deal is as good as keeping money in the bank!

When you do have to go into a store, review your cart prior to check out. Ask yourself, "Do I actually NEED this?" I find that if I go through everything and estimate the final bill, it's easier to prioritize purchases. Maybe I can save money if I buy two of something, but that money is wasted if I won't actually use both items. Also, those three tubs of ice cream are probably unnecessary...

Cut back wherever possible. Bills may seem never ending and inflexible; however, there are always ways to reduce somewhere. For instance, most networks now post episodes online within a week of airing so you can get your favorite shows for the cost of your internet connection - no cable subscription needed. In addition, the cheapest unlimited Netflix plan is only $9 a month and includes online streaming of content, including many television shows (Netflix was our budgeted reward). Streamlining and bundling bills can save you money and a headache or two!

Budgeting can be tricky but it is worth it. What budgeting tips work for you? What are your budgeting challenges?

Crystal Ritchie lives and blogs in San Francisco with her preschooler son Jack and her partner in crime/fiance David. She loves to share stories, tips, and tricks related to the parenting gig. When she is not parenting, writing as the San Francisco City Guide Editor for Savvy Source and on her personal blog, Ewokmama.com, or scoping out awesome deals, she can be found working at a software company in her favorite city.