Coming up with a budget is hard, but sticking with it is even harder. With the recent recession, all our primary needs are becoming expensive. Food, shelter, clothing and almost everything is reaching a point where it becomes a great burden. Most people are trying their best to tighten their budget but many end up frustrated. There are some cases where the hindrance lies in their actual spending habit. No matter how good a plan is, it will never be successful without the knowledge of proper execution. Creating a budget plan is ineffective without the proper attitude in living your life on frugal means. Spending without thinking will cause failure to any financial plans. Here are some ways on how you can spend less.
First, withdraw money from your bank account on a weekly basis. Use this for free spending but make sure not to spend anymore than this. Add 10% to your total budget to create some allowances for unexpected bills. You can also ask your bank if they offer time delay programs. This program will prevent any depositor from withdrawing until a certain time or date. This is the best way to prevent yourself from any irresponsible expenses.
Next, look at the part where you also limit your daily expenses. For example, if you are a working mom, do not bring money than you need to work. Having extra bills will keep you from buying anything along the way. There are times that we are shop without thinking about it. This can ruin your budget and can put you in great debt. Just remember to think rationally before purchasing anything.
After controlling your expenses, you can now try quitting your bad habits. Smoking, drinking and gambling are all expensive vices. These things cost so much that you might as well be throwing money in the garbage. This part is difficult but is very rewarding. Taking care of your health will be your best investment in the near future. Think that as your finances improves, as does your health.
Lastly, monitor all your expenses. You should record all your grocery receipts, water and electric bills, and even petty expenses. You can do this manually with a piece of pen and paper or use a computer with some budget software. Add some graphs and colors to help you visualize errors and unwanted costs. You should analyze every part of your budget plan and try making some adjustments if possible. By doing this, you’ll be able to reach your full budgeting potential.
When you have completely evaluated every aspect of your budget plan, apply all these guidelines to help you execute them properly. It will be difficult at first but you’ll get used to it as the wheel keeps rolling. Money is not always about earning but also the pleasure of spending. Budgeting doesn’t mean preventing yourself from buying things. It's just a matter of intellectually spending it in the proper time, place and value. Use these five budget tips to save money and spend less.
Are you executing a monthly budget? What do you do to make it effective? Share it with us by leaving comments below!