For many, to try and live on a tight budget is smothering and a huge challenge, but with the right mindset and strategies, you will not be one of them. You will be able to have the resources and will to not only live on that tight budget, but thrive on it. In this blog post, we will go over those strategies and top tips that will make you comfortable on a tight budget, all without giving up on everything that you enjoy. Welcome to the world of frugality 101.
Create a Budget Plan (And Really Stick To It)
Have you ever made a New Year’s resolution to get fit, but never hit the gym? It’s the same if you create a budget plan and don’t commit to it – it’s not going to stick. Make sure you can follow it with great discipline and keep thinking about the long haul gain. You start your budget plan by making lists of all your expenses and income. This will give you your current financial situation. To keep it simple to keep track of your daily money in and money out, you can use a budgeting app that will track your spending, categorize your expenses and even help set financial goals for you.
Trim the Fat from Your Expenses
If you have never done an expense audit before, well today is the day. Begin by reviewing all your recurring costs. These are your memberships, daily expenses and subscription services and make the hard decision about which ones you are canceling and downgrading. Do you really need eight streaming services? The aim of this audit is to trim down on your unnecessary expenditures without taking away all of your essentials and reasonable comforts.
Cook at Home More Often
Your budget is busy shrinking away faster than UberEats can arrive at your door. Stop eating out so much and rather cook more at home. Not only are you saving more money but it can even be healthier too. The trick to home cooking is to buy in bulk, plan your meals ahead, and create a grocery list. You will definitely start appreciating meal prepping and giving some time, you might even find a great love for cooking.
Shop Smart
When it comes to your shopping cart, it is all about doing the smart thing. And it means jumping on sales, taking advantage of loyalty programs and using coupons. And get to grips on changing to buying generic bands. More often than not, their quality is the same but at a much lower price tag. Thrifting and clearance shopping are also great ways to still get what you want within budget.
Utilize Free or Low-Cost Entertainment
Take a walk on the wild side and look at free or low-cost activities to do on the weekends and holidays. It can be attending community events, hiking in local parks, or even visiting museums on free days. Swap out your nights out for game nights at home or potluck dinners with friends.
Use Public Transport or Carpool
Nothing can break a budget like unexpected maintenance hick-ups from your car. Try and rather only use your car in emergencies and start using public transport. You can even find out at work if there’s some colleagues who would like to carpool. It’s a sure fire way to minimize the maintenance costs on your car, wear and tear, reduce fuel expenses, and parking fees. Plus you get to cut your carbon footprint as these are much more eco-friendly choices.
Be Energy Efficient
Take a good look at your budget plan and you will see that the big money monster is your energy bills. Put them on a diet by unplugging unused electronics, using energy-efficient bulbs, and using a smart thermostat. You will be able to manage your heating and cooling costs much better with the app on your phone.
DIY Whenever Possible
The DIY wagon is not a trend or an fab, but a budget saving lifestyle. Put a pause on buying something new or getting someone in to do something, and think really hard if you can do it. Let YouTube be your yogi and scroll through the multitude of tutorial videos online that can show you step by step to do anything. From personal care to home repairs, there are many DIY projects for you to master. You will be able to learn more skills with these DIYs and save some serious money.
Find Ways to Save on Bills
Trying your hand at negotiating bills can look very weird to many, but you have to value every dollar saved. Get intouch with your service providers and see if they can give you better rates, even bundle services will do if it means lowering your costs. Keep your eyes peeled for competitive offers, and don’t think twice about making the switch to a new provider if they give you a better deal. The same goes for your insurance policies. You need to review them regularly and make sure if you still need that extra coverage.
Build an Emergency Fund
Don’t think that because you are on a tight budget, you don’t need to build your safety net. An emergency fund is the best way for you to stay financially safe. We all know and have experienced how unpredictable life is, and this safety net is there to catch you when life hits you with an unexpected expense (like a sick pet), stopping you from tumbling into debt. Just start, even if it is a few dollars every week, and if you can put away more next week, put it into the emergency funds jar. You will sleep a lot better at night knowing there is a bit of financial cushioning while you’re living on a tight budget.
Conclusion
You don’t have to bury your old habits completely when you have to live on a tight budget. Just think outside the box, be extremely disciplined and stick to your budget plan, and you can still enjoy a quality life.
