It can be tricky when you think about how to budget your money, especially when you have a family to support. We’ve gathered the best money saving tips so you can learn the best ways of managing your money.
How to Budget Your Money & Save
One of the best money saving tips is to create a family budget and stick to it. It’s actually a lot easier than you might think –here’s how:
- Track your spending for a month. Don’t just keep track in your head; write down all the purchases you make, including card payments.
- Split your spending into categories at the end of the month. Create categories like utilities, entertainment, food, travel and so on. This way, you can identify the areas you spend on the most, and you’ll be able to cut back accordingly.
- Compare your total spending to your monthly income. This is a good tip to make sure that you aren’t living beyond your means. It’s important to remember that not all months are necessarily equal– some are more expensive than others due to things like traveling plans or school fees.
- List your annual expenses. On a piece of paper, write down the months of the year along with the dates and amounts of annual payments, especially for periods of heavy expenditure like Eid or Ramadan.
- Calculate how much you should be saving every month. Divide the large payments by 12 and you’ll know the average amount of extra money you should be saving on a monthly basis. Remember to anticipate any future payments, such as buying school uniforms or summer holiday plans.
Money Saving Tips – Sticking to Your Budget
When thinking about how to budget your money, remember to make your goals realistic and attainable. Here are some helpful suggestions and tips on managing your money when you’re budgeting for the entire family.
- Round up all the figures. When you’re planning how to budget your money, round up the figures to the nearest ten– this way you’ll be giving yourself a little safety net without even knowing it.
- Use more than one bank account. Money is harder to spend when you don’t have immediate access to it. Consider opening a savings account for big annual expenditures. That way, your main account will be dedicated to direct debits. Transfer a monthly sum from it to a current account with a debit card for day-to-day spending.
- Get rid of credit cards. This is one of the most essential tips to save money. Credit cards make it difficult to keep track of your spending, and you’ll have to pay everything back with interest.
- Use debit cards and carry cash. For predictable monthly expenses, use a specific debit card to pay them every month. This works for rent, electric bills, and any other expenses you make on a monthly basis. As for daily expenses, withdraw cash on a weekly basis –you’d be surprised at how less you spend when you’re limited to the money in your wallet.
- Understand wants versus needs. If you’re serious about wanting to implement these tips to save money, always ask yourself one question before every purchase: is it a want or a need? Think about this when you’re buying a new bag, or when you want to eat out when you can eat at home for a fraction of the price. This tactic might help you save more over the long term.
- Be a savvy shopper. Do some research before making purchases, even if it takes a little more effort than usual. Internet stores might offer cheaper prices compared to stores at the mall, and you might end up saving quite a bit of money. Try to take advantage of sales or bulk discounts. Additionally, try to test out which in-store brands might be cheaper than well-known brands but just as good.
- Try recycling. Some organizations pay people money in exchange for their recyclable waste, such as glass, plastic or paper. Separate your trash into categories and sell it to these organizations. You’ll be making a small sum of money and you’ll be helping the environment as well!
With these suggestions, you can now begin managing your money and saving a little on the side – it doesn’t have to be a struggle. Start working on your budget today and see how far you can go!