Do you often eat out? Are you addicted to Starbucks? Do you frequently visit movie theaters? Do you hit the malls regularly? And, have these habits of yours made you a broke? If so, then you must stop these immediately and pay attention on how you can save the rest of your precious dollars.
Tips to live on a shoestring budget
Living on limited money is not too difficult. You just need to make some lifestyle changes and be patient. If you are thinking how it is possible to live on a tight budget, check out these tips for further assistance:
1. Make a realistic budget and stick to it
Now, when money is limited you have to make a fresh budget. Don’t make a budget right away.
Instead, try to adopt steps like consider your income, calculate your expenses, make savings (both for retirement and emergency), pay off dues, set financial priorities, and so on.
You can make a successful realistic budget if you follow these steps religiously. And, most importantly, you should stick to your budget no matter what.
2. Separate wants from needs
It is the best way to help you stick to your budget.
Find out what items you really need and what you think you need.
Jot down the things you purchase regularly and separate your needs from your wants. Try to reduce the items on the list.
3. Cut out cable TV connection
You are wasting a lot of money if you like to watch TV in your free time. Cut out cable TV connection and find out other activities to keep you engage. For instance, you can spend time with your family, read books, and so on.
4. Give up gym membership
When you are on a tight budget, you must give up your gym membership in order to save more. Instead, try to run, walk, or cycle in the fresh air. Not only it’s good for you body, but also it’s healthy for your wallet.
5. Look for ways to make more money
Pulling off daily expenses can be tough when you have limited money. In this case, you must find out other ways to earn money like do freelancing, work extra hours, deliver newspapers, do babysitting or pet sitting, etc.
6. Save more and spend less
Someone rightly said a penny saved is a penny earned. Whenever you spend wisely, you tend to save money. So, think twice before spending each penny.
Consider these things to save more:
- Make a new dish with leftover food.
- Shop at thrift stores and garage sales.
- Purchase things in bulk.
- Look for coupons.
- Do comparison shopping,
- Cook your meal at home.
- Find out ways to save more on utility bills.
- Find out inexpensive entertainment sources.
- If you don’t have a party attire, borrow one instead of purchasing it.
- Eliminate bad habits like smoking, gambling, excessive drinking, impulsive buying, and purchasing lottery tickets.
7. Make cash payments
One of the best reasons to use cash is that you can keep track of what’s going out of your pocket.
In financially tough situations, you must stop making payments with your credit cards as it’ll entice you to spend more. If possible, freeze your cards for the time being. However, you can always start using them once your finances are under control. Also, never stop using your credit cards forever. Because it’ll take a toll on your credit score.
Do you have some other helpful tips to share with us? Do write to us in the comments below.
You may find this helpful:
How should you manage your finances from your first paycheck?
Categories: Personal Finance