How to manage your monthly spending and still enjoy life
Managing monthly expenses is not the most exciting task. The prospect of having to cut down on the things you love means that it’s easy to avoid it altogether. The good news is that with just a few quick budgetary fixes, you can save money without feeling deprived.
Create a realistic budget
Keep an eye on your budget and monitor all income and expenses, no matter how small. Tracking doesn’t need to be complicated – a budgeting app or a basic spreadsheet will suffice.
Categorising expenses gives a view of what areas you’re spending on. Categories can be broad or narrow. For example, you might create sections for groceries, pet care, or streaming services.
One bonus of setting categories is that you can put a cap on each one to keep outgoings under control.
Cut unnecessary expenses
Do you have multiples of the same expense? From streaming services, through to magazine subscriptions, you likely don’t need them all. Cancel one and see how you feel without it.
Food expenses can spiral. Limit takeout to emergencies. Cook at home a few days a week and track the savings to keep yourself motivated.
Scrutinising bills can uncover areas to save. Learn how to negotiate with providers to improve your chances of being offered a better rate. Or you might decide to switch providers after doing research.
Look into car finance
A car can be one of your biggest outlays. To avoid depleting savings, an excellent option is to spread out payments with a car finance arrangement. To get the best deal, compare interest rates, check for hidden fees, and ensure that repayment terms align with your budget.
Plan for unexpected expenses
When you’re hit with unexpected costs, it can be tempting to turn to credit cards or loans. To avoid this outcome, build up an emergency fund with three to six months’ worth of expenses. Hold it in a separate savings account and start today, no matter how small the contribution.
Shop smarter
Be creative about saving money. Use coupons and buy necessities in bulk. And always compare prices before buying an item.
Charity shops like St. Gemma’s or the British Heart Foundation are a fun way to find bargains on clothing, furniture, and even electronics. Many charity shops now have online sites. Even better, your money will go to a good cause.
Automate your savings
Treat savings like a non-negotiable budget item. It takes just a few minutes to set up an automatic transfer to your savings account to come out every payday.
You can start with a small amount. What matters is that it’s consistent.
Take advantage of free or low-cost entertainment
You don’t have to splash out money to enjoy life. Look around your environment. There are usually lots of free community events, or nature and city walks to explore. And the public library has a wealth of free books and movies.
Investing in your own tools gives you a low-cost way to engage in activities such as painting or sewing.
Start a side hustle to boost your income
Side hustles can provide financial flexibility. You decide how much time you want to devote to an extra gig.
What freelancer skills can you offer? Pet sitting or selling items online are a great way bring in extra cash. Look online for more ideas on how to make money on the side.
Have fun while being money-smart
Money management doesn’t have to be time-consuming. By budgeting wisely, reducing unnecessary costs, and increasing income, you can manage your finances while still enjoying life.