Some people have difficulty maintaining a monthly budget, but the most important thing that a person can do is get their finances in order. Therefore, it is vital to take the time to assess your current financial situation and develop a strategy that will help you put away your credit cards and live within your means. Although this will require you to make some initial sacrifices, it will eventually become easy to work with your budget.
Tips for Sticking to a Budget
Understand Your Bills
The first thing you need to do is gather all of your monthly bills and make a list of how much they cost. If you discover that your monthly bills cost $1,500 and you are only bringing home $2,000 a month, this means that you cannot spend more than $500 a month on all of your additional expenses. When you borrow money from yourself via credit cards or overdrawing your account, it can become practically impossible to get your finances back in line.
Cut out Unnecessary Frills
If your bills consume most of your monthly salary, you should strongly consider where you can make cuts to make more money available. For example, if you have a cable plan with 300 channels, you need to ask yourself if you are really utilizing that service. If not, you should cut the cable plan back to the basics or get rid of it altogether. After all, you can get subscriptions to Hulu and Netflix for a combined total of approximately $16.00 a month, and they will allow you to watch most current shows and a long list of movies. This can represent a savings of over $100, and it is a great way to get your finances in line.
Use Coupons and Freebie Sites
There is a reason that so-called extreme couponing exists: it works. Although you might not have the time or resources to clip coupons all week, you should definitely sort through all of your coupons before you go to the store. It is also a good idea to check the ads of at least two grocery stores to determine where you can get the best deals. Another good way to stretch your budget is to utilize freebie, or sample, sites. These sites will enable you to try out new products for free, and you will also occasionally find a free sample of one of your favorite products.
The Dollar Store is Your Friend
Although you need to carefully compare the prices on the items that you get most frequently to make sure that you do not end up overspending, your local dollar store is a great way to stock up on essentials without breaking the bank. For example, most dollar stores will have four packs of AA batteries for only $1. Even if they do not last quite as long as the batteries that are sold at a full-price store, the cost savings will still add up. You can also get cat litter and other common household items for $1 as well.
Discounted Entertainment Options
Everyone needs to get out sometimes, but you do not have to spend a lot of money. Instead of paying full price, you can go to a matinee movie or take advantage of the cheaper lunch menu at your favorite restaurant.
As you can see, there are several ways to reduce your monthly expenses. By taking a more frugal approach, you can stick to your budget and remove your reliance on credit cards.
Image courtesy of David Castillo Dominici / FreeDigitalPhotos.net
See Also:
- Preparing a Budget for UK Child Maintenance
- Tips on Eating Right on a Limited Budget
- Five ways to reducing monthly bills in the UK
- The Costs of Commuting
- How Much Should Your Family Emergency Fund Be?