What would be the key hacks to save money?
- Simple Budget
- Achievable Short Term Goals for Saving Money
- Achievable Long Term Goals for Saving Money
- Complicated Budget will be hard to follow. It added extra stress on you. and will not last long. That is one of the biggest mistake that you can do when it comes to arrange a budget.
Tips to create a simple budget
- Always give a higher value than the actual value to the expenses. For example if you averagely spend $250 for food make it $270 in your Budget. Always average value will not work.
- Always give a less value for the income. This is just to be Safe and leave a margin for any extra expenses or unexpected expenses.
- More the information you have about your spending better you can setup your budget. You can always record your spending in a Excel under different categories. If you use (normally you do) bank card or credit card you can go through couple of statements to get more information about your spending patterns.
- You will have only hand full of income types. If you have more just take the main income methods. So you will always have the extra money to fund your needs.
- Always start with main categories - Spending can be categories to Savings Food and house hold items, Entertainment, Bills, rent or mortgage and etc..
when you are familiar with your budget you can always break it into sub categories which will give you more control. - Base on your last couple month expenses you can allocate funds to each budget. Specify when you allocate them or from which income you will allocate it (if you have two or more incomes)
For example - If you get weekly income you can allocate for food in first week. Second third and fourth weeks you will allocate funds to savings, entertainment and rent. etc.
If you get a monthly income you do not have much options. You have to settle all your budget in the pay day. - Don't be scared to change your budget as you go. It always needed to be tweaked base on your experience and problems you might face when following your budget.
Achievable short term and long term goals will make your money saving exercise interesting as you will be self motivated as you achieve goals. Always keep your short term goals small. As you achieve them one by one you can always make them higher and higher as you understand your capabilities. In that way it will be a strength to archive higher long term goals without much trouble and stress.
What are your money saving hacks tricks and tips? If they are not secrets you are always welcome to share it.
