Budgeting Tips You Can’t Afford to Ignore

by Emma L. Business consultant

If you’re like most people, you probably don’t have a habit of setting aside a portion of your earnings. However, doing this might be a good idea, since there’s always a chance you’ll have to cover emergency expenses. Moreover, you’ll probably want to have some money stashed for your retirement. Still, socking away money can be quite difficult, right? Wrong! There are some tips you can follow in order to make budgeting a real piece of cake and we’ve singled out 6 of them you simply can’t afford to ignore.

budget

Keep all your receipts

Asking for receipts and keeping them is naturally useful since it gives you a chance to ask for a refund if you believe there’s something wrong with the product. Still, these little scraps of paper can also help you save money. If you ask for a receipt every time you buy something, you’ll have a clear evidence of what you’ve bought, when you’ve bought it and how much you’ve spent on it. That way, you’ll be equipped with everything you need to figure out if you’re paying too much for something or there’s a specific location that brings out the big spender in you.

Start paying yourself

This may come as a surprise but paying yourself is a great way to save money. In order to be able to do this, you’re going to need a special account for yourself. Most of the banks will allow you to segment and set up a different account as you like. Once you do that you can start paying yourself 10% of what you earn on a monthly basis and use the money on that account for any non-budgeted expenses. And if you have a separate savings account, you can combine these two accounts when it’s time to buy a car or pay for a big holiday.

Call in some backup

We know budgeting can be difficult but who says you have to do it on your own? If you’re struggling to stash a portion of your every paycheck, you might want to get some moral support. Budgeting is way easier when there’s a friend, partner or family member on your side. They can keep track of how much you’ve spent and how much you’re supposed to spend. Therefore, they’ll be able to help you when it comes to making changes in your spending habits. And if they’re in the same boat as you, you can return the favor by doing the same for them.

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Stop using credit cards

Credit cards may seem like a great tool to use when it comes to your personal finances. However, sticking to cash when you’re trying to save money is always recommended. By using cash you’ll eliminate credit and fees, but most importantly, there will be no way for you to spend more than you actually have. You can start by withdrawing enough money to see you through a whole week and try to stick to it. If you think you can restrain from using your credit cards on things you don’t really need, you can still keep these in your wallet for emergency situations.

Take out a personal loan

Of course, taking out a personal loan is a great way to bring in some extra money. However, this is only the case if you know how to manage a loan responsibly. So, if you want to apply for a personal loan, you first need to know what you’re going to use that loan for. You’ll also have to choose the type of loan that fits all of your needs and crunch the numbers. What we mean by this is that you’ll have to work out how much money you can afford to spend on your monthly repayments.

Give micro-investments a go

Micro-investments can do wonders for your budgeting habits. They can simultaneously help you save money and give you a chance to invest it. It’s pretty simple – what you need to do is whenever you buy something, round it up to the nearest whole number and invest the money you’re left with. So, instead of keeping the change you get for your coffee every morning, you can invest it into something that’ll help you earn a small amount of money. Micro-investing is pretty simple nowadays since there are apps such as Acorns and Stash that can do a huge portion of work for you.

If you think of your budget as a chore, you’re hardly going to make it. Instead, try to think of it as an ally who’s trying to help you fight for your savings. And if you’ve been thinking about it but you still haven’t started budgeting, bear in mind that there’s no time like the present. The sooner you start the more money you’ll manage to save!