Negotiating for a Better Budget

Updated: Jul 8, 2018

So now that you’ve created your budget or updated your current budget it’s now time to determine where and how to cut costs if necessary. If your budget fits in one of the categories below you need to take action:

  • Your expenses are more than your income

  • Your expenses are equal to your income

  • Your income barely covers your expenses

  • Your income does not allow you to pay yourself (savings)

The first thing you need to do if your current situation fits in one of the four categories above is decide what you can do without. Look at your expenses that are not really “needs” and decide if the cost is really worth it or can you use the money towards something else or perhaps paying yourself. If you normally get your hair and nails done every two weeks, determine if it is necessary for you to go to the salon/spa twice a month or is once a month sufficient? Ladies can you do your own hair and nails? Fellas can you cut your own hair? Maybe this is the perfect time to experiment if you don’t to save some money. What about your gym membership that you pay every month? Are you going to gym faithfully or can you work out at home? Do you have a friend that you can go to the gym with as their visitor and maybe you two can split the cost of one membership? Can you use the gym at work instead? These are the types of questions that I want you to ask yourself when trying to trim your budget.


After you’ve gone through and decided what you can and can’t do without or what you can do less of, now you can start negotiating costs for things you really need. When I didn’t have a job this was the first thing I did to cut costs.


Major Key Alert: As an auditor we do not recommend anything to our clients if the benefit is not greater than the cost. Even though the cost – benefit analogy is something I learned by working, it is a simple concept that has stuck with me in my personal life. I don’t buy anything if the benefit is not greater than the cost. You’ll want to lock in this concept as well.


So when negotiating your bills with your service providers ask yourself if what you’re getting in your package, contract etc. is worth what you are paying. If it isn’t you need to call and ask for a lower payment. So for example the first bill I called to have reduced while I wasn’t working was my cable/internet bill, because I felt like I “needed” it. This is just one bill I hate because the service provider will lock you into a rate for 6 months or a year and then once you’re out of the promotion your bill sky rockets. So in my situation I called my service provider and explaine