When it comes to life, it’s safe to say that it can be expensive. Even when you love to be frugal and finding a great bargain is really exciting for you, it’s often a great idea to make sure that you can ensure your monthly budget stretches as far as possible. But not because you don’t have enough money, or because you want to feel like you need to cut back. The reason why it’s always great to know that you can stretch your budget, is because it’s always fun to know that you can free up some cash for the little luxuries in life. And that’s the way to think about it. And at the end of the day, do you really want to be spending hundreds of dollars in the supermarket each month when you can go on a mini break instead?
That’s the best thing about being on a budget. You don’t have to focus on what you’re missing out on. Instead, you choose to think about the things that you’re saving money for, and the entire process feels that much more exciting. When you know that you’re starting to really think about the things that you’re spending money on, and the items that you need in your life, you’re actually being a lot smarter about what you get out of your budget. By spending less in areas that don’t mean a lot to you and allocating more money towards the fun stuff, you’re winning with your finances. So let’s take a look at how you can do this.
- Set Up A Spreadsheet
The very first thing you’re going to want to do here is create a spreadsheet. Now, there are a range of ways that you can start to track your spending a little better, but this is often the best way to be able to really know where you are with your money. Create a spreadsheet and fill out things like your monthly earnings and the main areas your spend in. Then start to add in your purchases on another tab so that they feed into each budget area.
- Track Your Spending For One Month
With your spreadsheet up and running, you now need to start to track your spending. Each day or at the end of each week, work out what you’ve spent on and when. Write in the costs and the reason for the expense so that the figure can feed into the right area on your chart. Do this naturally for a month so that you can see what you would usually spend on and how much.
- Adjust Your Budget Figures
From here, you’re then going to want to start to adjust your budget figures going forward. When you see how much you’ve spent in each area, don’t panic. Because now you can change things. The idea is to make your money stretch further. So now that you’ve seen how you spend naturally, you can cut down each area to make sure you’re happy with how much you spend.
- Cut Out Unnecessary Expenses
Another thing that will become apparent is that you tend to spend relatively unnecessarily. Not all of your purchases will be like this, but some will be. You’ll start to easily identify ways that you can drastically cut down how you spend and what on. And it’s incredibly empowering. So go ahead and cancel those subscriptions or just stop spending on certain things. And voila! You’ve freed up a little cash.
- Shop Around For Better Deals
Now, for the things that you do need to spend on, you’re going to want to bring the cost down. From utilities like https://lumoenergy.com.au/ to groceries, you can reduce the amount you spend everything. By shopping around and looking for discounts, you’ll only ever pay the minimum.
- Spend Consciously
At the same time, it’s going to really help you to start spending a lot more consciously whenever you can. Instead of just swiping your credit card whenever you feel like it, use cash or just really think about the purchase you’re about to make. That way, you know that anything you buy is something that you really want or need.
- Avoid Impromptu Purchases
As a step on from that, it’s going to really help you to stretch your budget if you can beat impulse buying. These tips on https://www.thesimpledollar.com/ should really help you. And when you master this, you’ll be so proud of the money you can save each month.
- Buy In Bulk Or Discount
But don’t always try to cut back when you do spend. Because sometimes spending more upfront is going to be the best for you. When you can buy in bulk to get a better price overall, if you get a discount when you spend more, then go for it. Remember, this is all about making your money stretch further. So to do that, you’re going to want to ensure that you’re getting the best deal possible, which isn’t always about spending less.
- Plan Bigger Purchases
Of course, you need to be realistic with everything too. And you can’t just avoid big expenses in life. Instead, you just need to learn to budget for them better by planning them in. When you plan for big purchases, you’ll make sure that your money is stretching as far as it possible can. When you know that you want to buy something big, or that you need to do it, give yourself weeks or months to save the money, think about the purchase, and make sure you’re happy with the expenditure.
- Create A Fallback Fund
And finally, it’s always helpful to have a fallback fund. So think about creating an emergency fund as https://www.nerdwallet.com/ shows us. When you want your money to stretch further, it’s helpful to know that you don’t have to dig into your monthly budget in order to pay for emergency expenses. Instead, you have your fallback fund for that.