Money is tight nowadays, and many people need to tighten their belts. But despite this, it’s never fun to feel like you’re not having the same quality of life as you used to. And even if you’ve been living on a budget for some time now, that doesn’t mean it isn’t possible to make smarter choices with your money, especially during these tough economic times, and over time see an increase in your lifestyle.
In today’s economy, with unemployment skyrocketing and people losing their homes, it’s hard even to get by. But with some intelligent spending and planning, you can continue to have the same amount of money (maybe more) per month to live on; and even at a higher quality of life if you so desire.
Below are some ways that will help you to be an intelligent spender;
1. Make a list of your income.
Before you start your budget, you’ll want to find out how much money you’re bringing in each month. Make a list of your income sources and include any bonuses, gratuities, or other extra payments you receive. You may also want to look at ways of increasing your income, such as getting a raise or starting a side business.
2. Limiting your credit card use.
Credit card companies are always trying to entice you into spending more money. But in reality, credit cards come with a high-interest rate cost. These high-interest rates can add up over time, especially when carrying a balance on your credit card. So the first thing to do is pay off your credit cards monthly. Once you have done this, it’s time to start looking at ways of lowering your spending so you can pay off that debt even faster.
3. Practice the art of penny-pinching.
The last thing you want to do is not spend on your children because it will affect them emotionally, and it’s most likely that they’ll end up spending more money than you were in the first place. So, to prevent them from losing out on experiences, make a list of what activities you can do for free, such as walks through your local park, going to the library, or playing games at home.
4. Create a budget
A budget is a handy tool. It can help you to determine where your money is going and what steps you need to take to make better financial decisions. Create a budget, get a pen and paper, or use a personal finance program on your computer. It’s easiest to break down your spending into categories (food, entertainment, clothes, etc.). Still, for some people, it helps to split it into more specific categories (grocery shopping, eating out, gas). Write down how much you spend in each category each week. Then, determine ways to reduce some of your spendings.
5. Identify quick wins
One of the most effective ways to reduce your monthly expenses is to find the low-hanging fruit. You can do this by looking for payments you can easily cut without making too many sacrifices. For example, canceling one or two of your most frivolous subscriptions can reduce your spending without hurting your quality of life.
6. Always remember to save.
It’s easy to get discouraged and think that you can’t afford to save because of the financial pressures that you’re under. But saving requires discipline, and it may be too late to develop it later on if you don’t have it now. Always remember that there will always come a time when an emergency comes up, no matter how hard things are right now. You can survive and even thrive on a tighter budget during this challenging economic life by keeping savings in your savings account.
7. Stop lousy spending habits.
Many people have bad spending habits that they need to get rid of. Some people spend money on impulse, while others never seem to have enough in their savings accounts. The trick is being able to discern between the things you really need and the things that are just a want. To help you, try adopting a 30-day rule before buying something new.
8. Set Goals
You can’t get anywhere in life without setting goals and sticking to them; the same is true with your finances. Try to set small, attainable goals. Doing so will help you stay motivated and on track. Some people keep a purse or wallet with a list of their monthly goals. This is an excellent way to stay motivated throughout the month.
9. Set up multiple accounts
Many people make the mistake of setting up a single checking account with all their savings, emergency funds, and multiple sources of income. The problem with this is that it makes it easy to spend the money that you need for savings, instead of saving it. Consider opening a separate account for your emergency fund and another for your long-term investments.
10. Utilize money-saving apps
Many free money-saving apps are now available on your smartphone or tablet. These apps can help track spending and budget and even give you the ability to make instant transfers between accounts. Many personal finance apps can help by showing you an overview of your finances and providing advice on getting out of debt or building an emergency fund.
11. Put your plan into action
Once you’ve created a plan for your finances, it’s time to put it into action. The first step will be to get a budget where you keep track of your spending and know where the money is going. Next, you’ll want to make a list of all your expenses each month; this will give you an idea of where the money is going and what categories need to be improved. Once these things are down, create an action plan for each category.
Conclusion.
This article provided a wide variety of money-saving tips that will help you to live a better lifestyle while not sacrificing your overall financial well-being. Use the information provided in this article and apply it to your finances. The savings will be tremendous.
