It is vital to ensure monthly expenditure does not exceed monthly income in order to live within one’s means. Additionally savings should be put aside for an emergency fund and the future. The benefits of living within one’s budget ultimately means there is more disposable income, resulting in less dependence on financial products which can add interest to expenditure.
Saving money does not necessarily mean that the fun goes out of life as one adopts a more frugal lifestyle. There are many ways in which money is wasted on a monthly basis and these can be addressed without suffering deprivation.
Often a certain proportion of the monthly budget is wasted servicing interest payments on credit cards. Eliminating these interest payments by paying down credit card balances and ceasing credit card usage, results in an immediate saving once the debt is paid off. Instead of dedicating a monthly amount to service interest payments, the money saved can then be used for the next expense which would previously have been purchased on credit. Paying by cash rather than accruing credit card interest, saves money.
Another area of expense that can be cut back on is money wasted on banking fees. Many banks, particularly online, now offer free banking services. Switching accounts offers an immediate saving which can add up over the course of a year. Similarly it pays to check around for cheaper insurance quotes and less expensive utility providers. It is always worth checking for financial service areas where money can be saved on an annual basis.
Food purchases represent a large monthly expense, particularly when convenient fast food and processed foods are relied on. Turning to home cooked meals offers a monetary saving, whilst cutting out convenience foods offers better health and a trimmer waistline. Time can be saved by bulk cooking and freezing, meaning home cooking does not become a chore. A huge saving can be made by having home cooked ready meals on tap, made from fresh local produce.
Eating a healthy breakfast reduces the need to spend money on unhealthy snacks during the working day. Additional savings can be made by taking a home prepared lunch to work with a flask of coffee. Many people literally throw money into the bin due to food wastage. Consider following these tips to prevent food being thrown away and make savings.
It pays to become a savvy shopper and stock up on goods which are purchased on a regularly basis whenever they are on offer. Toiletries and dry goods can be stored when they are on sale, but don’t be seduced by tempting impulse offers that will end up in bin or which would not usually be purchased.
Remember that small daily savings on impulse purchases can add up to a tidy sum over the course of a month. Combined with the savings made on financial services and convenient but unnecessary food purchases, it is possible to free up a substantial amount on an annual basis.