Unfortunately, most of us have limited budgets. It’s sad, but it’s true. Often it can feel like we have to double our efforts in order to fulfil our basic needs and obligations and have a little left over for some nice things. Personal financial management is hard, especially when your income is limited. But that’s why I’m here. Here are some easy ways to reduce your expenses to make that budget stretch a little further.
1) Saving Money Starts at Home
I mean this quite literally. Your house will be costing you a lot of money. Saving electricity is a great place to start: simply switching off appliances you aren’t using can save hundreds over the course of a year. Reduce your water consumption as well: did you know that a running tap will expend 6 litres of water a minute? Turn them off, take quicker showers and make sure that the dishwasher is full to the brim. It’s great for the environment, and it’s great for your bank balance.
2) Be Aware of Your Expenses
Keep an eye on all of your expenses. The best way to do this is to keep an organised record of all of your outgoings so you can easily see whether you’re sticking to your budget. Remember, this includes everything I discuss in my article entitled “6 Expenses You Probably Forgot to Budget For”- Click Here To Read. You should be able to balance your necessities and your luxuries, but the former should always take priority.
3) Put Some Money Aside
This is so important, and I can never remind you enough. Even if it’s small change you’re shoving into a piggy bank, every little bit helps. You never know, one day it might help you get out of a sticky situation and you’ll think “Thank God I listened to Penny”. If you can refrain from using your credit card then please do so, that money you’re paying in accrued interest could be money you’re setting aside for more important things.
4) Prepare for What is Ahead
The future is just as important as the present. If you don’t believe me, watch The Terminator. Prepare for your future so that you’re prepared for any and all eventualities. A great way to start is to make sure you’re adequately insured in case something goes wrong – this is an admirable way to invest your money.
5) Teach Your Children What You Know
This is incredibly important. Your children should be as good at handling their expenses as you are, and these things are not always taught to them in school. Teach them how to appreciate money as early as you can. The sooner they appreciate the value of money, the sooner they’ll be as penny-wise as you are.