How to Manage Your Life on a Budget
Your money can only go so far. When you are trying to make ends meet, watching where every penny goes can become draining, but it is possible to live your life on a tight budget. A little planning and some simple maths will help you to cut out unnecessary spending and save for any big purchases coming up, like a new car.
The need to budget is becoming more pressing for millions of people. In the UK, inflation rose to 2.9% this month. This means that everyday goods are becoming more expensive, which in turn means that your wages won’t go quite as far. Budgeting will help to put some of those worries at bay, which can start by looking at your bank statement.
Itemise your Spending
Check your bank statements over the past year. From them, you can list what your regular incomings and outgoings are. Then, add them both together and see where you can get some items for cheaper. If you have regular income from a job or your own business, make sure you don’t spend more than that amount!
When it comes to paying less for everyday spending, shopping around could bring massive savings! For food, switch from branded products to own-brand. For gas and electricity, look to comparison sites; the same applies for broadband and subscription TV. Try to haggle for a better deal if you’re calling a potential new supplier.
Call in the Experts
If you run your own business or have a lot of different sources of income to manage, keeping track of all the invoices and so on can be hard work. Calling in experts can help you to save money and stick to a budget, no matter how much you earn or where your money goes each month.
Look at calling on financial auditors for help with budgeting. They can advise you on areas such as taxes, look at all of your spending and see where you can save money. If nothing else, it saves you from trying to find a calculator and spend hour after hour working out what you can afford to live on!
Cut Frivolous Spending
If after auditing, you find that you’ve spent more than you bargained for, look at what you can do without. For example, if you go out for a meal once a week, space them out to every two weeks or once a month. Over a year, you could save hundreds that could be spent on life’s essentials instead. Use a savings calculator to work out how much.
While auditing or looking at your bank statement, see where else you have wasted money. When on a budget, there are cheaper ways to treat yourself than retail therapy, such as a night in with a DVD or a walk to the local park.
Seek Extra Income
Even if you’ve started to live on a budget, if your income is insufficient, look at ways you can raise funds. Sell any unwanted goods, ask for overtime at work or, if you have the time, look for a part-time job. As little as an extra hour at work per week on a wage of £10 per hour would amount to an extra £520 per year before tax!