chris-the-new-dood6 budgeting and money tracking tips to keep your bank balance healthy
If you are newly married, saving up for a big expense or trying to claw your way out of debt, then managing a tight budget could be the answer to your problems. With money-related stress affecting us all at some point in our lives, it’s great to know that there 6 practical tips that can help us through the hard times.
1) Maximize Your Savings
Figure out how much money you can realistically save each month from your budget. Set up a standing order to deposit this into a savings account each month. This will serve as a handy buffer if you fall into any difficulties later on.
2) Use cash for essentials
Taking a pen and paper, work out exactly how much money you need for your everyday living costs (eating, travelling expenses etc). At the start of each week, withdraw this amount and divide it equally into paper envelopes. Name each one: “Monday, Tuesday, Wednesday, Thursday” to serve as a reminder.
Just remember not to use your card as this is the quickest way to lose track!
3) Ditch your “bad habits”
If you’re a smoker or a drinker, alchohol and cigarettes are an obvious expense to cut from your spending. This could be a great opportunity to make some positive changes to your health as well as reaching your financial goals. Other bad habits like gambling can go too!
4) Pay down your credit card debt
The high interest rates on credit cards make them one of the worst forms of debt. But there are some logical steps that you can take to pay them back effectively and quickly:
- Focus on the credit card with the highest rate of interest.
- Pay back as much as you can each month without getting yourself into further difficulty.
- Pay the minimum balance on any remaining cards - this will stop you from getting any bank charges.
5) Track your Money
The biggest hurdle to overcome in making a budget work is self-discipline. Once you’ve been budgeting for a few weeks it can be easy to fall back into old habits. Keeping track of your daily spending is a great motivator and can give you an early warning sign if any expenses. Track your money with 1DayLater
6) Analyse your spending habits
You’ve tracked your spending habits, now its time to make some practical use of this knowledge. Figure out if any of your expenses can be reduced or removed completely. Are you spending a lot of money on restaurant food each month? Could you be saving money on gas? (check out our earlier blog article on finding the cheapest gas prices in your area)
Lastly, don’t lose faith!
Keeping a budget is pretty hard work. It takes discipline and self-motivation, so focussing on your goals will be key to your success. I’d suggest attaching a photo of that big expense or dream holiday to your fridge or somewhere else where you’re likely to see it. Now good luck and don’t give up!
paul-king
