Budget can make life easier

By Emily Simnitt
(Boise) Idaho Statesman

When your financial situation changes, simple steps can help you economize.

Trevor Everson, a father of three young girls, worked at Hewlett-Packard for 10 years and was building a house when he was let go in 2003. An electronics technician by trade, he now works at SCP Global Technologies in Boise, Idaho. He's making two-thirds of what he made at HP, but he's getting by.

"It's not the end of the world," Everson says. "There's work out there. It might not be exactly what you want, but don't give up hope."

For Cathy Leamy, change was a choice. She left the corporate world to start her own mortgage banking business five years ago. A single parent, she wanted more time with her son Ryan, now 11.

Leamy's first year wasn't easy. She took home less than before she became self-employed. But she tightened her budget and now makes more and sets her own schedule.

There really is light at the end of the tunnel.

But the last thing you need are money worries. Here are a few ways to take back control of your checkbook:

Ask an expert. Leamy says she consulted her accountant on both her business and personal budgets before striking out on her own.

Cut the cord. We're talking cable. For Leamy, it was one of the first things to go during the first year of her business, along with movies at first-run theaters.

For cheap entertainment, visit your public library. You can't beat the selection of books, and there's an increasing number of videotapes and DVDs you can check out for free. Or opt for a show at the discount theater.

Re-evaluate transportation. Pay off your car or put a new car on the backburner — or use your bike.

Eat smart. Tawra Kellam, publisher of www.LivingOnADime.com, says you can save more than $7,000 a year on your grocery bill by keeping just a few items out of your grocery basket.

For example, put back the bag of potato chips to save $104 a year and a box of cereal each week to save $208 a year.

Avoid temptation. Gregory Thomas writes at www.savingsecrets.com that you can save hundreds, even thousands a year, by simply avoiding the mall or Target.

"I didn't spend money I didn't have to spend," Leamy says. "I've always lived on a budget and that really helped."

And take those credit cards out of your wallet if you can. Paying with cash means you won't have to pay finance charges if you can't pay off your balance each month.