Your finance has escalated way beyond your monthly budget scheme. Very soon, you’d be receiving credit warnings on an overdue loan bill or you’d be tempted to withdraw a payday loan to meet expenses. And you know quite well, that is a move that would get you in some serious financial troubles.
You cannot change your financial conditions and save money, if you don’t make up your mind. For those of you seriously considering a, “spend smart, save smart”, strategy, here are five easy tips to help you out.
1). Differentiate Between Need and Luxury
First off, you need to understand the difference between need and luxury. For example: buying diary products for the month is a need while eating out is a luxury. Buying a new iPhone is a luxury while repairing your security system is a need. Make a check list of necessary items for the month, including food, grocery, bills and utilities.
2). Cut Down on Food Expenditure
We spend more than a fraction of our earnings on food without realizing it. Imagine the money you can save if you stopped buying junk food, canned foods and all those soda drinks. Cutting down on food expenditure is not only good for your budget but for your health too! Focus more on buying natural, organic items such as vegetables, fruits, lean meat, fish and items that you can actually use to make healthy meals at home. Stop buying comfort food and save money.
3). Avoid Going for Frequent Shopping Trips
Unless you are actually out of clothes, shoes or handbags, shopping trips are just another heavy cost factor. Do not spend money to console any form of depression, family problems or other such issues. If you really need it, buy one suit a month or one handbag after every three to four months (even that’s not necessary). When shopping, try going for the SALES season instead of buying it at a regular season. Manage your shopping adventures and you can save money a whole lot more.
4). Divide Your Money in Fixed Proportions
Divide your hard earned monthly income in fixed proportions and that too in priority listing. First off, keep an amount for paying your credit dues. Do not stall this part, because credit dues is one of the main reasons people are going bankrupt. Once you clear all your bills and other such essential costs, settle an amount for food and grocery items. Once you divide the money into fixed proportions, you will then be able to understand what’s important for you.
5). Make Yourself Stick to a Plan and Save Money
After dividing your expenses and deciding on the amount you want to spend for the month, stick to it. Do not overspend and do not cross the limit on that amount. If you really want to save money, then force yourself to stick to a plan otherwise down the lane, you would be feeling guilty and frustrated with the uncontrolled expenditure.