Free Up Your Budget With These 5 Tips

There’s no denying that it’s challenging to live on a limited budget these days. With increasing costs and decreasing wages, it seems like we can never catch our breath. But let’s face it: You can’t always afford the things you want or even necessities like food, rent, and healthcare. Because of this, being frugal is something that more and more of us need to be thinking about more often. Keeping a tight rein on your spending isn’t fun, but it does get easier over time once you get the hang of it. If you think frugality is something you could benefit from incorporating into your life now, here are five simple tips to help free up your budget and make living on a fixed income a little bit easier in the process.

Assess your current expenses

Before you can begin saving anything, you have to stop wasting money. The first thing you should do is assess exactly what you are currently spending money on. The best way to do this is with a budget. There are lots of apps that can do this for you, but a great budget template like Excel or Google Sheets can get the job done just as well. You’ll want to keep track of every single cost in your life: what you spend on transportation like your car and public transit, your phone plan and groceries, and even your internet and home utilities. Once you have them all tracked, you can start thinking about ways to cut back. A great first place to start is with your insurance. Do you really need collision and comprehensive coverage? How much are you really driving? Look at ways to save on your insurance coverage. Do you really need cable? There are so many other ways to get online and save money on your entertainment. Once you get the hang of it, it won’t be long before you’re seeing your spending habits change for the better.

Cut out the things you don’t need

It goes without saying that the first place to start cutting back is with your monthly expenses. While it’s easy to start cutting your bills, you’ll quickly hit a wall if you just keep slashing your spending. You need to take a step back and reassess exactly what you need and what you don’t. When it comes to your monthly expenses, don’t be afraid to make some sacrifices. Cutting back on car and public transit expenses is a great beginning, as well as other everyday expenses like entertainment and insurance. If you’ve got a really big monthly bill like your mortgage or rent, you might have to make some sacrifices there—even if you don’t have to move back in with your parents. Try cutting back on takeout, eating at home, and wearing your old clothes a little bit longer while you look for a new place. It’s not the end of the world and it can save you a lot of money.

Set up auto-pay for your bills

One of the best things you can do to free up your budget is to set up automatic bill payments. This will ensure that every single bill gets paid on time, saving you the hassle of forgetting and missing payments. There are several different ways you can do this: If you have direct deposit, make sure it’s set up. If not, do some research to find an account that works for you. If you have a mortgage, switching to auto-pay will mean that you’ll be charged recurring monthly payments rather than paying off the loan all at once. This makes it easier to stay on top of your payments and saves you a bit of money in the long run.

Ask yourself “What can I do today to save money?”

This one is a bit of a trick. Frugality doesn’t happen suddenly; it’s a mindset that requires constant maintenance. Instead of waiting for an opportunity to come along and save you a few dollars, look for opportunities every single day. There are so many free things you can do to save money. Take advantage of the free internet you get with your cellphone plan. This will let you look up coupons and compare prices on websites you already use. If you drive, use public transit as much as possible. This will not only save you money on gas, but it will also save you on parking fees. Parking is one of the most expensive things you can do. Keep a close eye on your monthly expenses and look for areas to cut back.

Estimate future costs and plan accordingly

While you don’t have to be completely precise when estimating how much something will cost in the future, you do have to have some sort of idea of what you’re doing. It’s not a good idea to get into a habit of spending a lot more than you’re planning to. Estimate how much things will cost a few weeks, months, and even a year ahead of time. This will give you a better idea of how much you’re actually saving and also let you account for any price hikes. If you know that your phone plan is going to go up by a few dollars every year, you can plan accordingly and save even more money. Depending on your circumstances, you might even be able to negotiate with your phone company.

Conclusion

There’s no denying it: Living on a budget can be challenging. There are always unexpected costs that pop up, and you never know when a bill will arrive in the mail. But not only can be living on a budget be done, but it can also be done successfully. It just takes some careful planning and a little bit of creativity. If you’ve been thinking about what it would take to live on a tighter budget, these five tips will help you get started.

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