The money will never be enough – or at least people think this way. When trying to save up for the unexpected expenses, retirement, starting a business, or whichever objective you have for saving, you have to budget your income well. Budgeting involves planning your income of formulating a plan that will divide your income and apportion it in the required manner such that consideration is given to the priorities.
One priority is to save. Contrary to peoples’ tradition of saving the little overflow from your budget, you are supposed to consider the percentage to save first before you can now budget for the remainder. Always pay yourself first before you pay the rest. This expression implies that you should put away a small percentage in your savings once you get some money before you can even buy food. Furthermore, you should never adopt the tendency to honor your debts first before saving.
Besides, saving is not easy, you will have to contend with a minimum income to ration when budgeting. But however small your budget is, you cannot forego saving for other items. Instead, you forego other items in favor of saving. Below are some of the items you can cut or find alternatives when budgeting on a small income.
Ways you can save on budget
- Cut on television subscriptions.
- Many people widely use cable or television decoder to be able to access extra channels. This service is usually costly – up to $100 worth for every subscriber. If you are running on a very tight budget, then this fee is not feasible for you. It will not make any sense to pay for television subscriptions which you rarely watch and miss on saving. Hence, a prudent idea should be to either get an alternative in other streaming services which are cheaper or do away with this monthly cost for good (or temporarily as you organize your finances).
- Watch your eating behavior.
- If you are an “out” eater, then you can definitely save some dollars on that expense. You can be able to cut some costs when you stop eating from restaurants, hotels, diners or even fast food joints and cafes. Cooking from your home will save you about $50 – $80 a week. You can put this money on other tight expenses instead. Therefore, you have to stop eating out and focus on preparing your own food.
- Consider buying from discount stores or online deals.
- A majority of young individuals can say with utmost certainty that they feel some kind of loyalty with some market brands. If you are on a tight budget, then it would not be an absurd idea to consider buying a substitute of that brand which may be on discount. If not, you can search through social media and look for those brands which are going for low prices or are discounted.
Furthermore, you can as well take advantage of the discount periods such as the ‘Black Friday’ to buy all commodities you require and save the extra dollars for other expenses. Buying discounted products can save you a fortune. You have to, however, be careful not to overspend on these products. Just shop on the budgeted price and not an extra dollar. You could as well in a host of fun deals such as a trip for two, electronics, etc.
- If you are trying to maneuver through a tight budget, and you are still low on the target, then it wise to start cutting on at least every item element on that budget. For example, you can save on fuel by conserving it, you can save on power bills by minimizing the usage of heating and cooling appliances in the house. Also, you can cut a dollar or two from groceries, entertainment, travelling etc. go through your budget and find areas where you can trim to more exceptional manageable levels with the limited amount you are trying to do with. Once you realize the areas that can save a few coins, try to adapt to this budget until you sort out your finances.
- Minimize big spending.
- Significant expenditures in your budget are likely to originate from your house rent, your car, loan repayments, etc. you can trim these expenses too. An excellent way to cut on the rent cost is to consider to move to a smaller house or move in with a roommate so that you can share the rent expenses.
Moreover, you can also decide to sell your car and buy a reliable old car which will help you conserve on both fuel and maintenance fees. On the credits, you can enter an agreement with your lender to alter the loan terms and allow you to make lower monthly instalments so you can reduce the burden of loan repayment. Click here for more monthly installments.
- Consider switching to cash mode of payment.
- It is effortless to control your spending while using cash than using electronic means of payment. You can return some goods on the shelves when shopping and your bill is not enough since you will know exactly how much you owe. It is, however, impractical to pay some utility bills such as water, electricity and rent in cash. But it is rather convenient to carry out your purchases in cash.
- Get rid of your credit card debts
- You will be surprised at how much your credit card debt is accruing in terms of interest. If you have an outstanding balance on your credit card, you must clear it fast enough to prevent further deductions on your monthly income. You will, therefore, have secured enough cash to put into extra savings than leaving it to be eaten away with the credit interest.
The above options are not the only ones you can consider when trying to cut on costs for saving the goal. Instead, you have to be creative, understand your priorities and do whatever is necessary to make sure saving remains your number one priority among the many that you have.
- Can Payday Loans Hurt Your Credit?
- Top 10 Quick loan apps Companies in Nigeria-Apply Now for Instant Loans
- 10 Must-Know Things Before Applying for a VA Loan
- Top 3 Nigerian Micro-finance Banks That Grant Loans without Collateral