5 PRO Tips That Can Help You Live on a Budget
Why is it essential to live on a budget?
Living on a budget is crucial because it allows you to save money. When you have a budget, you know how much money you have to spend each month and what you need to keep for the future. This enables you to stay out of debt and plan for significant expenses, like a car or a house.
It’s also essential to living on a budget because it teaches you to be responsible with your money. If you learn how to live within your means when you’re young, you’ll be more likely to do the same when you get older and have a family.
Living on a budget may seem impossible, but it can be done if you have the right mindset and follow a few simple tips.
1. Make a List and Stick to It
When you go grocery shopping, only buy the items on your list. This will help you stay within your budget. Avoid any temptations that you may have while in the store.
When finding a special deal, evaluate how much you can save on your groceries instead of what you are purchasing. Going without something is better than paying over the odds for something you don’t need.
PRO TIP: Do not go shopping on an empty stomach!
2. Cut Back on Eating Out
Eating out is expensive and can quickly eat away at your budget. Try cooking meals at home instead. Cooking can be fun, and it will save you money over time.
An excellent budgeting tip is to invest in a coffee machine instead of drinking your coffee at coffee shops each morning. You can whip up a gourmet cup throughout the day without spending too much compared to what you would have spent at the café.
Invest in an instant pot or something similar so that you can make your meals on your own time. This is more cost-effective than having someone else prepare meals for you and pays off very quickly. This method is also tried and accurate because we all know how expensive eating out can be!
PRO TIP: If you still fancy a restaurant meal, use apps like ToGoodToGo to get your favorite takeaways at low prices.
3. Make Use of Online Banking Tools
Online banking tools allow you to track your spending and see where you are overspending. This can help you know where to cut back on your spending and help you save money.
Online banking can also help you keep track of your bills and payments.
You can use online banking to determine what bills you have coming up and when they are due. This can help you make sure that you do not miss a payment. Online banking can also help you set up recurring payments so that you do not have to remember to pay your bills each month.
Also, some of the banking apps allow you to put your money in different saving “pockets”.
PRO TIP: I have a savings account where I put all my money in different saving spaces: one for rent, one for bills, and another for food. This way, I know that all my basic needs are covered each month, allowing me to manage my budget effortlessly.
4. Live Below Your Means
This doesn’t mean you have to live in poverty, but you should avoid buying things you don’t need. It also means living within your budget and spending what you can afford.
It’s an old proverb, but one that is still sage advice. In these times of economic strife, it is more important than ever to be mindful of how you are spending your money. While it may be difficult, living below your means can have several benefits.
When you live below your means, you can save more money and be more financially secure. You are also less likely to incur debt because you are not spending more than you can afford. You can use this money towards essential things, like retirement or a rainy day fund.
PRO TIP: Every time you feel the impulse to buy something, ask yourself at least three times: Do I REALLY need it? We often let ourselves be deceived by advertisers into buying stuff that we do not actually use.
5. Get Creative With Your Entertainment Options
Many fun things can be done that don’t require spending a lot. Some examples include:
- visiting the local library,
- daily walks,
- reading books (from your collection or the library),
- enjoying a hike in a beautiful location,
- taking up a new hobby,
- working on puzzles, etc.
Some fun social activities cost next to nothing:
- go out with friends/family for a picnic,
- play board games or video games
- have friends over for an entertaining movie night at home.
PRO TIP: Watch out for local events in your area. Big brands usually sponsor them, and you may have the chance to get free entry and some snacks and drinks. Are you going out, eating and drinking for free? What else can you wish for?
If saving money is important to you, do not deprive yourself of everything you love! Instead, go out with friends and family instead of doing things alone. That will allow you to feel like part of your community and curb your urge to spend money on unnecessary things!
Please find a few friends or family members who want to pay their debts. Get in touch with them, and establish routines for check-ins so that everyone knows who is working hard and who is slacking off!
Finally, reward yourselves for meeting your targets once you are debt-free! Perhaps go on vacation with money you have ‘saved up’ just because the feeling of success should be celebrated!
