Do you spend more than you save? Are you eager to put more away, or do you find it tough to control urges when you’ve got your credit or debit card on you? Many of us struggle to find a balance between living in the moment and treating ourselves and thinking practically when it comes to our finances. While there’s nothing wrong with the occasional splurge, it’s always wise to live within your means. If you’re keen to tip the balance between saving and spending, here are some tips that may come in handy.
Don’t live another day without a budget
If you’re not already au fait with budgeting, don’t risk another day of living in the dark when it comes to financial planning. Drawing up a budget is so simple, and it can really help to prevent overspending and ensure that you have an accurate, up to date picture of how your accounts look. When you’re budgeting, use exact numbers wherever possible, and include every incoming and outgoing payment. Once you know how much money you’ve got coming in and going out, you can work out how much you can afford to spend and save.
Prioritise need over want
We all like to treat ourselves from time to time, but splurging on a regular basis can lead to a downward spiral. If you can’t afford to buy a new outfit every month or book holidays twice a year, you should prioritise what you need over what you want. If you continue to spend more than you earn, there’s a real risk that your debts will spiral out of control, and you could find yourself in a tricky situation.
If you’ve got debts, make paying them off your priority. If you find yourself in a scenario where you can’t cover bills, or you’re at risk of missing loan, rent or mortgage payments, seek advice. There may be options available to you, including borrowing money to pay off pressing debts. If this is an avenue that is open to you, it’s worth reading debt consolidation program reviews. Even if you don’t have debts, it’s wise to keep a close eye on spending, as you never know when your financial situation may change. You might have a steady income now, but would you be able to stay afloat if you lost your job or you needed to pay for unexpected car or home repairs?
Learn to be a savvy shopper
When was the last time you gave serious thought to how much you spend and what you spend your money on? If the answer is never, take a look at your budget and analyse the outgoings. If you’d like to spend less and save more, shop around for the best deals on insurance, TV and Internet and electricity, and try and set a budget when you go to the supermarket. Save money on petrol by cycling or walking to work and think about reducing spending on social activities. There are plenty of inexpensive ways you can have fun and hang out with friends.
If you’re eager to boost your savings balance, draw up a budget, take a close look at where your money is going and try and focus on what you need, rather than what you want.