A budget can be very beneficial if you’re trying to achieve financial goals such as saving up for a holiday or a first home. When creating a budget, many believe that it can be difficult cutting out expenses as they are all necessary. Here are 5 tips that can help you stick to your budget and maybe reduce some spending.
1. Save First then Spend
Treat your savings as a bill and transfer it to a savings account when you get paid. By doing this and putting it out of sight, you can save each week/fortnight/month for the things that are important to you; like a house deposit, that new car, going on holiday. It can also reduce the amount you have left over for impulse spending.
2. Change from Credit cards to Debit cards
Getting rid of your credit card and replacing it with a debit card can reduce debt as well as expenses. Cancelling your credit card removes the temptations to spend and create debt. Second, credit interest fees are more expensive than debit card fees so you can be saving on account fees and interest.
3. Try Budgeting apps and tools
There are many online budgeting tools that can help you keep track of your budgeting for free. Joining a budgeting group can also give you the support and education needed to produce a budget and stick to it. You can also get support from your financial adviser or money coach.
4. Stick to your Grocery List
Sticking to your grocery list and not buying extra things e.g chocolate and ice cream, at the shops can save you a lot. When shopping without a list, it is easy to lose track of what you want and what you need, pushing that grocery bill up. Buying fresh food instead of heavily produced foods is not only cheaper but better for your health.
5. Become Environmentally Friendly
Going green isn’t only good for the environment, but for your budget as well. Investing in something as simple as energy-friendly light bulbs can save you a lot on your next energy bill. Purchasing a water tank can also save on your water bills. Using more efficient heating and cooling will help reduce energy consumption as well.