There are a lot of people all over the country that living paycheque to paycheque. It’s not ideal and if you continue to live this way, you might end up in big trouble in the future. You might not be able to deal with financial emergencies and we all know those are inevitable at one point or the other.
A lot of people don’t realize that it’s quite possible to live on a tight budget. We’re not talking about just paying the bills but also being able to save up money and potentially do things you enjoy as well. It just takes some dedication and discipline to get there.
So without further ado, here are some tips to help you survive on a low budget:
Plan Your Budget
If you want to be able to cut down on spending, then you have to figure out where all your money goes each month. Therefore track down all of your typical monthly bills and write down all of your expenses, segregating them into appropriate categories like rent, utilities, groceries, entertainment…etc. This way you know what you can cut down on and what you can’t.
While you don’t have control over things like rent, you can absolutely reduce what you spend on things like clothes, video games, nights out at bars…etc. If you compile all of your expenses into a spreadsheet, you’ll be able to see how small cuts here and there will add up to a significant amount of savings.
Prioritize Emergency Preparations
A financial emergency like a hospitalization or a car repair can really put you in hot water. In order to prevent this from happening, we highly recommend that you start a rainy day fund. All that is required is going a few months without spending on luxuries and you’ll have a significant amount saved up to cushion you. From then on, you can save up in small amounts and be completely fine.
In case of particularly severe emergencies, when your rainy day fund doesn’t quite cover it, you can always rely on fast cash loans to bail yourself out.
Find Cheaper Ways to Do Things
Once you’ve figured out what exactly you spend your money on, we recommend that you start looking for cheaper alternatives. For instance, if you spend a lot on a gym membership, consider exercising at home or at the park. If you’re always eating at restaurants, why not learn how to cook your meals? Here are a few other great money-saving alternatives:
- Carpooling to work instead of driving every day. Even if the co-worker asks you to chip in on gas money, you’ll still end up saving a lot.
- Making your own coffee at home.
- Setting up a budget home theatre instead of going out to the movies every week
- Learning how to perform car repairs and maintenance on your own.
- Learning how to clean and perform repairs on your home.
While it’s not easy to live on a tight budget, it’s far from impossible. With these 3 tips you’ll have no trouble doing it.