Top 10 Budgeting Tips

29 April 2015
Category Budgeting
29 April 2015, Comments 0

The task of budgeting is often considered to be boring and ‘not cool’, but what is wrong with being able to save on water and electricity and save on groceries, and other essentials and still live a great life? It is one of the sure fire ways to cut down on unnecessary spends, build your savings and pave your way to financial freedom. It’s indeed every person’s dream to live a life without having to constantly worry about costs and expenses.

Here are top 10 budgeting tips for you to start with —

1. Put aside a portion of your pay

Set aside a portion of your salary as soon as it’s credited into your account. It could be as little as 5% to start with, but make sure you don’t use your savings for your weekly expenses. Slowly and steadily you saving fund will grow. You could consider opening a separate savings account that’s difficult to access and lets you stick to your goal.

2. Save on grocery

We spend a major portion of our earnings on food and drinks. With a little discipline, we can save a lot here. Before you head to the store, check what items you already have in surplus. Make a list of the things you need and stick to it. It’s easy to pick what’s on the counter, but buying what you need and not what you want is the key.

3. Save water and electricity

Top 10 Budgeting TipsThe future generation will be thankful for this eco-friendly gesture of yours and you’ll also save on your utility expenses. Turn off lights, computers, Air conditioners or heaters when not in use. Invest in energy efficient appliances for long term benefits. Use the washing machine only when it’s full. You’ll be surprised at how much you can save with this.

4. Shop smart

It’s easy to go with the flow and fall for marketing gimmicks and persuasive advertising. However, a little thought can go a long way. Buy only what you need and look for clearance sales for making your purchases. Checkout discount sales available online as well. Op-shops, however, are the best places to pick your stuff.

5. Cook your own food

Eating at home is a win-win situation. You can make healthy, nutritious food at almost half the price of what you’ll be spending on a meal outside. Money saved and health gained!

6. Borrow and share

Have you ever thought about borrowing garden tools from your neighbours or sharing outfits with your siblings? Well, this is just for starters. There are a bunch of things that you can borrow, lend and share among your family and friends. Just use the borrowed good judiciously.

7. Walk to work

Save on fuel and transportation cost by walking or cycling to work. You’ll be fitter and save a lot. In addition, you don’t have to spend on a gym membership.

8. Make use of envelopes

With a fancy credit card at your disposal, it’s easy to get carried away. Use the system of envelopes instead. Assign a certain amount for different types of expenses and use the stipulated amount. If you run out, use from an envelope that can spare some. With practice, you’ll be a pro.

9. Tailor your lifestyle

Arrive at a lifestyle that you can get by during your leanest of months. Pay fluctuations are normal, but with this you’re in safe waters. Remember, put all your surplus income into savings.

10. Rewards

When you’ve cut down your costs and your saving fund is growing as per plan, pat yourself on the back. Reward yourself with something you’ve been dying to buy and continue to practice you expert budgeting skills.

Above we have listed the Top 10 Budgeting tips, hopefully you will be able to easily incorporate some of the above into your daily routine. At first it may take a little work but once you see the savings, you may be telling all your friend about the benefits!

 

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