These days when the prices of items are high but your income generally remains the same, it pays to live a frugal life. But of course there will always be sacrifices to make when you want to save money and remain within your budget pay check after pay check.
Here are 7 practical tips given by MoneyMindz.com, Best On-Call Financial Advisory Portal on ensuring you have sufficient money at any given time.
- Keep A Record Of Your Cash flow
Living a frugal life is a conscious effort and thus, you need to develop a system to help you conveniently determine where you are in terms of personal finance.
Even if you have no plans of actually creating a detailed financial report at the end of the month, it still pays to know where your every cent went. At the very least, you should categorize your expenses to help you determine what’s eating up a big chunk of your money and see if you can reduce your spending. General categories include food, transportation and clothing.
Consider summing up your expenses in each category every end of the month to help you create your action plan for your budget in the next month.
- Take Advantage Of Smartphone Apps
These are perfect to use when you usually get headaches when dealing with numbers and calculations. There are a number of budget monitoring apps that you can install in your mobile phone to help you track your finances any time.
Moreover, some financial tools are meant to help you understand complex calculations such as those involving repayments on loans and mortgages. So before taking out a personal loan or a payday loan, make sure to use the appropriate finance calculator to avoid surprises when it comes to repayments.
- Stop Spending More Than You Earn
This may sound like an obvious tip but the truth is that many people tend to spend more than they can earn by taking out loans and using credit cards.
Regardless of how much spending power you have, resist the urge to incur expenses higher than your income except for highly urgent matters.
- Involve Your Family
Living a frugal lifestyle becomes easy when your family is involved. Let everyone know of your financial goal and share tips on how to be wiser together when it comes to money matters.
You’ll be surprised how your spouse and your children are making conscious efforts to live a frugal life themselves.
- Find Ways To Reduce Expenses As Much As Possible
While there are obvious ways to lower your expenses, you can further drive your living costs down in ways you may not think possible.
For one, you can possibly cut on your travel costs when going to and from work by analyzing the current transport options in your city. Perhaps there’s a chain of shopping malls in your area that offers regular free shuttle services between its branches. One of these branches may be near your workplace or your home.
Another quirky way to reduce expenses is to make use of discount coupons and voucher codes if they’re available on things you usually buy.
- Generate As Much Money As You Can
In the same way as reducing expenses, there are interesting ways to generate money. As an example, you can turn your hobbies into a side job to gain extra income. It won’t feel like a chore because you’re doing something you’re most passionate about.
Or how about going through the people who once owed you money but didn’t pay back? This may feel unusual, but you could discuss with them the possibility of making payments or at least returning the favour considering that you’re on a shoestring budget these days. You’ll be surprised how they would be willing to pay you back despite years of not being able to do so.
- Don’t Take Your Health For Granted
This may sound like not a financial-related tip but regardless of how you bring your expenses down or how much effort you can exert to increase your income, always keep your health in check.
How will you be able to earn money when your body becomes sick? So make sure to invest in good quality vitamins and other nutrient supplements if needed.
When it comes to food, make sure to choose high quality and natural products even if they’re a bit more expensive than low quality highly processed ones.
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