Sometimes it is so difficult to reduce impulse buys and stick to the budget… Unfortunately, all these situations have a huge impact on our expenses and quality of life. However, saving money sounds like too many of us daunting. To incorporate money-saving ways in your daily routine look at these 6 tips: they are simple and will be a real game-changer for your budget.
Be sure, saving money can be even entertaining!
Create a household budget and stick to it
Create the household (family) budget. This should include a constant stable salary (calculate the average salary for the last year, taking into account bonuses and allowances). Now from this money allocate finances for investment (for appliances, money for children’s schooling, buying a car). This amount should be at least 10% of your income, otherwise, you will have to save for a long time.
Now it is necessary to deduct the obligatory monthly expenses from the rest of the money. To do this, find receipts for electricity, water, gas, internet, cell phone, and possibly mandatory medications.
The money that is left over is what you will need to live on for the entire month (including food, unplanned expenses, and entertainment). Divide it into 4 parts (4 weeks) and learn to live on this money without touching the ones you put aside for investments. At first, it will be difficult to live on money from one envelope a week.
But, for you to have enough of it – make lists of mandatory purchases before you go to the store and do not be tempted by unnecessary goods.
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Keep track of all expenses
Keep records of funds in the form of a simple list. One column is income (salary, bonuses, rental property, benefits, part-time work). The second column is expenses. For example, renting an apartment, utilities, food, clothing, household services, and entertainment. Both the first and second columns should summarize all income and expenses. It is also important to keep lists.
You should come to the store with a ready shopping list, to reduce the amount in the check at the cash register.
Prioritize your expenses
It is not smart to spend 100 dollars on betting in the betting company if it is your last money, and it should be distributed for two weeks of life. Spending should be planned in descending order of importance, rent, utilities, loans, buying food and clothing, then comes entertainment. To have additional motivation for saving money, it is worth understanding exactly how much money is needed, and what it will be spent on.
It is desirable to write down your desire on a piece of paper that will be glued to the fridge so that every time you are tempted to break it and spend it all there would be a reminder of the massive aspiration.
Reduce your expenses for clothes
Considering the question of how to save money in the family, it is necessary to pay attention to this point. First of all, you should assemble a basic combination of clothes in which all elements are combined and there is nothing unnecessary. Buying clothes and shoes is better not in season, and in advance.
For example, there are discounts for summer shoes in the fall, and for winter clothing in the spring.
Set finance goals
If you do not set a goal for saving money, you will soon abandon the savings process. Figure out what you want to buy. Do you want a new, expensive perfume? Or do you want to buy a gadget? Identify that goal and set a deadline for achieving it. Without this point, you will always find something to do with the money, and despite a small salary, you will spend it on nothing.
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Pay Off Your Debts
If you have a lot of credit and debts, then you don’t know how to manage money. Do you want to learn how to save with a small salary? First of all, pay your debts. You may not be able to do this immediately. Try to refinance by finding a bank with better conditions. Even better – borrow money to repay the loan from acquaintances or relatives without interest. Or at a minimal interest rate.
So, as you see, budgeting basics are quite simple to understand. Of course, if you have never created your household budget before, it can be a bit tricky and challenging, but these ways will help you improve your quality of life.