When costs rise, its time to review the family budget

In our petroleum-dependent economy, we have seen prices for food, fuel, utilities and other goods and services rise now that the cost of oil has increased to more than $100 a barrel.

With the cost of living spiking, now would be a good time to review your budget. Don't wait until you're caught up in a serious cash crunch and turn to credit cards to finance your monthly living expenses.

Consider simple ways you can cut costs. Here are some tips:

l Prioritize. Spend your money first on what is most important. Ask yourself if a purchase is based on a "need" or a "want." Needs are necessary for survival: a roof over your head, a car to get to work, food to nourish your body.

Wants are luxuries that make your life more fun or comfortable, but in reality you can do without them. Don't confuse your need for a car as an excuse to buy a prestige model if a more affordable car is kinder to your budget. We all need to eat, but ordering steak every day may be an indulgence.

When doling out money each month, the first payment you should make is for shelter. Pay your rent or mortgage payment first.

Save as much money as you can each month. This savings account can be used in an emergency, instead of using a credit card.

l Economize. Compare the rates of utilities and phone services. Sometimes, you can get a discount by signing up for a package of several media and communication services.

To cut on food costs, revive and revise old family recipes. One-skillet recipes stretch meat, which can be the most expensive ingredient in a dish. Make your own fruit juice pops when the kids want something cold from the freezer, instead of spending on ice cream.

You can still have fun while watching your budget. If you love movies, consider taking the family to the dollar cinema; just forgo the pricy popcorn and soft drinks. Or you can always rent a movie and pop your own corn at home.

When was the last time you visited the public library? Magazines and books are there for your enjoyment, and they're all for free. Sitting in an air-conditioned building is a fine way to whittle away a summer afternoon.

"Staycations," or stay-at-home vacations, are making the news lately. Take your vacation at home. Pitch a tent in the back yard or in the living room. Work on crafts with the kids. Take short excursions around the area. Forget about the housework and turn off your cell phone.

l Increase income size. Look into getting a second job to bring in more income.

Have a garage sale to sell unwanted items. Some cities require a permit, so call your city hall first.

Before you begin your campaign to balance the family budget, it's important to change your attitude about what is really adding value to your life.

It's also important to get the entire family on board, or they will most likely view your plan as restrictive as a diet and not as changes positively benefitting the family.

What is your favorite way to cut costs? Drop me an e-mail, and I'll include them in a future column.

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Nora N. Garza is a County Extension Agent with the Texas AgriLife Extension Service in Hidalgo County, a part of the Texas A&M System. She can be reached at (956) 383-1026.