Budget wise the last few months were extremely hard on everyone, quarantine has changed the way we spend our days and our money. In addition to this worldwide pandemic, people are now suffering from a huge rise in prices due to inflation and the very turbulent economy.
For this, I decided to collect some ideas and tricks on how to save money.
Here are 7 things to consider:
1- Put a S.M.A.R.T budget goal
You want to be budget smart, but why? You have a long-term goal maybe?
acronym will help you follow a precise approach, which would help you outline
your ideas coherently. Your goal has to be:
Specific, Measurable, Achievable, Realistic, Time-based.
This easy to remember word will keep you in check not only in considering criteria for your financial management goals but also, it would be applicable in many other contexts of your life whatever goal that is you are planning to achieve.
2- Use a budget app
sure know your monthly salary (income) but maybe you never looked too deep in
the outcomes (spending & expenses) and oftentimes you wonder where your
money goes, worry not!
There are many apps out there for this purpose, one of which people have been finding useful is monefy. These kinds of apps will help you start paying attention to where all your money goes by tracking your spending and increasing your financial awareness.
3- Plan yourself a smart budget
all know we don’t always spend the same each month as sometimes we go with the
flow & splurge and think that we’ll be fine, and we end up leaving
ourselves in a pickle. Well yes, it might be irresponsible to do so, but we
don’t want you missing out on experience or pleasures. We just think you have the power to do so
without worrying about creating a problem for yourself by doing so.
yourself a cup of coffee, tea or whatever you prefer to drink on a nice Sunday
morning, and as you have your mind half-clear, sit down, think of all the
things you waste on, and all the necessitates you must adhere to, and write a
list so you can visualize your financial matters and start from there.
Put your spendings into categories according to importance, and this will make it much easier for you to remember things by remembering this simple list.
4- Learn about emergency funds
There is a reason this old saying is still
relevant till this day “Save your money for a rainy day.” You NEED funds for
many things that you probably think aren’t going to come your way because
you’re now young and healthy, well, it’s a tough cookie to swallow but no one
is going to stay young and healthy forever although we all wish we would.
Understanding the importance of creating an emergency fund and saving for the darker days is more than essential, also, consider retirement savings and look more into them, and believe me, your future self will thank you.
5- Pay your debts
Piling your debt won’t do you anything but keep you stressed. So why not just face them already? I know it looks scary and you’d much rather keep avoiding it but there are many ways to tackle this. For example, use the Debt Snowball Method, it helps you pay off your debts from the smallest to the largest, which would help declutter your mind step by step and calm your mind toward the idea of facing debt.
6- Eat at home
Restaurants can be really expensive. Eat at home. It’s cleaner, more tailored to your personal preference and its cheaper!!
7- Skip the car, use public transportation
Cars are MUCH less cost-effective than they are portrayed to be, your best bet is to go for the bus, bike or maybe walking if it’s doable. This way you’ll be dodging all the trouble that comes with a car like regular maintenance, gas, etc.
you agree with our list? Let us know if this list helped you figure out the
right way to save money and be BUDGET SMART.