If there’s one thing that 2020 has shown us, it’s that life is very unpredictable at times. In stressful periods, with rapid changes and circumstances beyond our grasp, it’s essential to take action to manage the things you can control.
Financial matters are one of these critical aspects that you can direct. This article gives you the latest scoop on easy ways to stretch your budget.
Start With a Plan
When you’ve got a plan in place, your goals are easier to achieve. In this case, the savings aim would be your budget setup. It should detail your income and your daily spending.
It’s vital to know where your money goes before you can manage it properly. So start by setting up a control sheet and tracking what you spend. This includes all major and minor expenses.
Keeping tabs on where your dollars go will show you where you can cut back and save. It’s often the small amounts that add up to a decent saving over time.
Once you’re aware of it, you’ll think twice before you spend it. A simple example is to have your morning coffee at home rather than out and packing your lunch rather than buying it every day.
Take Advantage of Special Offers
Shopping around often gets you the best price. It may involve a little bit of research, but it’s easy to do it with an online search. You can check coupon sites or review and compare a few of your local stores before you make a purchase.
Remember to consider if you need to travel further to get to the store or an additional delivery fee on top of the price. It’s only a real saving if the total cost offers you actual value for your money.
It’s also sensible to check other terms and conditions and the validity date. You’ll avoid disappointment by reading the fine print beforehand.
Stick to the Plan
The only way to save and keep saving is to stick to your plan or budget. There are several ways to do this, and the most important is commitment and discipline.
A great idea to keep within your weekly budget is to find your ‘green number.’ It refers to the amount of money you need to cover expenses for the full week and to have that available as cash in your wallet or safely stored in an envelope at home.
You’re only allowed to spend that amount. So no credit cards, no purchases on an account, or with apps. Once you deplete this fund for the week, you have nothing more available to spend.
This will help you think before you buy and guide you not to get what you want but only what you need. It’s an effective way to keep living within your means and not go beyond your shopping list, your weekly plan, and budget.
You can adjust this to suit your needs at different times of the year when you may need to add funds or even take some away. What’s important is that it’s practical and works for you.
It’s also a great way to get your family on board with your savings plan. Think of it as an option for an allowance for children to learn good money habits, and ask everyone in the household to join you on the ‘budget-stretching’ journey.
Key Takeaways
Setting up and then reviewing your budget is an excellent way to keep track of spending patterns. Once you know where your dollars go every day, build that up to weekly and monthly expense lists.
Take advantage of special offers whenever you can, but check all the conditions and viability to ensure you get value for money.
Once you have a plan in place, keep to it. Use functional ideas that work for you and your household to learn sustainable money habits. Involve the entire family and encourage one another to keep saving to stretch the budget.