Money Savings and Budgeting tips to maximize your salary and also provide damage limitation precaution when you already in a bad position financially
How to Save on a Tight Budget
If you are on a tight budget and want to start saving money or save more money then what you currently are then take a look at these tips.
Cut Spending Easily
You should keep a record of your expenditures for a month so that you are able to see where you are able to make small savings that add up. You might be surprised on how much you are spending on eating out or getting that daily coffee from your café.
With necessary purchases like food, you should comparison shop and find the lowest prices. Also when you go food shopping, make a list and stick to it, so you can avoid buying items you don’t actually need.
Limit the amount you spend on gifts. Rather get a few well-chosen gifts than a pile of gifts that are bought thoughtlessly because you didn’t know what to get.
Save for Emergencies
You should build an emergency fund so that you don’t have to rely on credit cards or loans to pay for an unexpected purchase. This is best done in a savings account. It is a good idea to ask your bank or credit union to automatically transfer money into your savings account, even if it is a small amount. Keep in mind that you will earn a little interest on whatever you manage to save.
If you have loose change then this should also go into your savings account. You will be surprised how much this can come to.
Reduce High Cost Debt
You need to avoid using payday loans and high interest credit cards. Payday loans usually come with an interest rate; meaning that you will be paying back a lot more than hat you borrowed paying off these high cost debts will easily save you money.
Save Free Money
If you get a tax refund then you should use some of this to pay off your debts and the other half should saved.
Also any unexpected money that you receive should also be used in the same way whether it is an inheritance, an investment that has paid off or other such things.