It has become essential for households to run a tight ship. And, this means having and sticking to a strict budget. For many people, it feels as though prices increase almost daily. To help you stay ahead of the increases we have put together a few essential budgeting tips every household can use.
It is essential that a married couple sit together and discuss their budget. You both need to be on the same page when talking about your finances. The best way to look at this is to think of household money as “our money”. If you are living along or are single it is a great idea to find someone close to you who would act as your accountability partner. This will help you stick to your budgeting goals.
Each Month is New
No two months in the year will be the same. Some months you might have to squeeze in back to school supplies and other months a little will need to put aside for a holiday or a birthday. It is always a good idea to keep a little money aside in your budget for special events. Special occasions should never sneak up of you (remember that Christmas will fall in December this year again). A great tip here is to open a savings account and have a small amount of money debited from your account every month into this account. Even in small amounts, you’ll be surprised how much you can save.
Decide on what is important?
Your budget should have four main pillars; shelter, food, transport and municipal. These should form the basis of your budget. You can start taking care of other categories in your budget once your pillars have been taken care of. It is important to note that each household will have different pillars.
Get rid of debt
Any and all debt in your household should be your top priority to pay off. The best way to get rid of debt is to use the snowball method. Once you have paid off one debt, take the money from that debt and put it into another debt. Add those funds to other debts once the second is done. In no time, you’ll have cleared your debt.
Don’t be scared to trim
Do not be scared of the dreaded budget cuts. If things are a little tough right now, you can free up some much-needed cash by eating out less, canceling satellite TV or finding new clothing stores. For the most part, budget cuts are a temporary measure and can be changed again at a later stage.
Check out these budget-friendly recipes:
Beating the budget does not have to leave you hungry. We have a great selection of tasty meals you can make for next to nothing.