Before I get started on frugal budget fundamentals, I want to comment that I know that many people facing financial trials now are doing so through no fault of their own. Now there is nothing new under the sun. As long ago as the 1830’s, a man named Gouge wrote in his book Paper Money reference to an "Enron-like" scandal of the time, that "The circle extends through society. Multitudes become bankrupt, and a few successful speculators get possession of the earnings and savings of many of their frugal and industrious neighbors."

I also have seen the national statistics which show as many as a third of people in the USA have been ‘down-sized’ from permanent to temporary positions with no benefits and no job security. Or they were laid-off and are getting unemployment benefits which are half their former salary. You are not alone, as many people who used to have surplus cash now have to mind strict budgets. So let’s get planning!

The basic principle is to sit down with a calendar and mark in all the payment dates and amounts.
1) from the "NEEDS" pile first.
2) Then mark down mark down all high interest debt and those with late payment fees next
3) then mark down the others last
4) mark down the savings deposit for any excess last

Some people color code these different types of expenses for easier decision making.

When I teach Stress Management classes, many people find that one big stress in the budget is that they have too many bills come due in the same week. If you can re-arrange this by paying some earlier, or call the creditor and see if you can change the payment date. Rather than not receive any payment, many will be happy to adjust the payment time.

Trim the fat from the budget. By this, I first mean things like carry rather than buy your lunch. Car pool with friends to work. If you live close walk rather than ride and tell people you want to get fit! You will –financially as well as physically. The basic principle is to THINK OF THE CHEAPEST WAY TO MEET THE NEED.

Another thing you can do is use go online and compare prices of various utility services, and insurance plans.

One site I have used which saved me lots of money on car insurance and phone bills is:
LowerMy Bills.com
LowerMyBills.com.

Another site some friends of mine used to do the same is:
LoanOuotes:
GetAFreeQuote.com - get a free quote and save on loans, cars, insurance, home improvements, credit cards and more!

You might check them out!

Try and re-think the Wants listed on the calendar. Are these expenses that can dropped altogether? Except in the most extreme financial emergencies all budgets have expenses which can be easily cut or substantially lowered.

Since they are particular to the individuals involved I’ll only list a few examples, and cheap solutions.
1) Entertainment -read books, watch videos from the local library, free concerts, do crafts
2) Eating Out - make it at home, carry lunches
3) Gift giving- make it yourself, use the Internet to shop for bargains, buy at yard sales, grow it yourself
4) Travel to work- car pool, walk, bike
5) Fancy Groceries- make it yourself, meatless meals, learn ethnic recipes, grow your own
6) Health and beauty- make your own, get samples

I’m sure you get the idea. Now these suggestions apply only for those in reasonable financial shape. In other words, for people whose bills are below or match their income. Next week I’ll suggest some solutions for people in worse financial shape. But all these suggestions apply for them too.

Continue to check out the informative and inspirational free sample pages at these excellent frugal books.

Complete Tightwad Gazzette
The Complete Tightwad Gazzette

Declare Your Finanacial Independence
Declare Your Financial Independence

Complete Cheapskate
Mary Hunt's Complete Cheapskate

Miserly Moms
Miserly Moms

You Can Afford to Stay Home With your Kids
You can Afford to stay Home WIth your Kids