Managing Fixed Budgets and Saving More Money
Getting into the habit of spending is easy. The real struggle lies in getting into the habit of saving, and even more so, when you’re on a tight budget. You might often find yourself frantically cutting costs in all directions towards the end of the month. Such situations arise due to bad budgeting and can be stressful for any individual.
Saving money doesn’t essentially imply cutting costs up and down. Savings are merely the result of effective planning of expenses and income.
Evaluate: Before committing to budgeting plans, evaluate your income and expenses. List all the expenses you make and rate them in the order of their necessity and reasonability. Eliminate the ones you don’t need and find low cost alternatives for the ones that you can.
Pay your Bills: Always set money aside for the fixed expenses every month like rent, EMIs, etc. You should deduct this amount from your total monthly income and then plan your expenses from the remaining sum.
Be Prepared: It is advisable to take some amount out of your income every month and put it in savings account or a mutual fund. Use this sum only during emergencies. If the month goes by without any emergency, you would automatically save that amount and more will be added each month, thus increasing your savings!
Dine-In: Learn how to cook and make your own meals. Going to restaurants and eating out can cost you 3 to 4 times more than it would have if you’d prepared your own meal.
Shop Smartly: Prepare a list of groceries and other items you need for a month and always buy in bulk. Not only do you get better offers on products, but you save money on fuel by avoiding multiple trips. Look for coupons and special offers connected to your debit card or credit card when you’re shopping online.
Keep Tabs: Learn to say no to all unnecessary expenses and impromptu shopping sprees. Check your expenses meticulously during the entire month.
When it comes down to inculcating new habits in oneself, it all circles back to diligence. New habits take time to develop and it might be difficult for you to adjust to your budget.Keep treading on the path of self-perseverance to save more each month even if you have a tight budget. Remember, a little discomfit now will go a long way into the future.
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