It’s a true fact that we keep spending money freely, only to scratch our head at the end of the day, wondering where all that money has gone. We all have had our days trying to save on something, and eventually end up shelling out even more. This usually happens due to the delusion that people have about reducing their expenses. Budgeting doesn’t mean settling for something less than what you deserve to have; it’s rather saving expenses on unnecessary affairs. It shouldn’t be taken as a compromise to the quality of life, but enhancement of the same for a bigger and better aspect.
Figure out the sources of your daily outlay and see if they are hurting your overall credit. Reducing expenses is in no way directed to go for cheaper things. Every penny spent on your needs is acceptable, but the same spent on trash is the one to be avoided. It may seem to you a small amount to misuse in a single day, but imagine how much will that add up to, at the end of the month or the year. With proper planning and analysis, one can overcome the perplexity of saving money by introducing vital changes in their lifestyle without compromising its quality.
Is your insurance biting your money?
Your insurance costs (car, home, business, life etc) play a pivotal role in deciding the difference between what you spend and what you should, for the premiums. There’s a good chance you may have had everything insured in place, with different companies providing the best quotes. But did you ever care to check how much that amounts to, in total. The hidden charges, the high rate deductibles and the other fees go well beyond what you expect it to be. It’s advisable to go with one reliable insurance company for all sorts of insurances, since that will allow you to save more on your insurance costs and may also earn you a good bit of discount.
Choosing a scheme of an insurance policy depends on your experience, age and financial condition. Say for instance, if you have been a good driver for years, you should consider raising your deductibles at inferior rates, while if you are unsure about your driving, you shouldn’t opt for the same. Similarly, for a health insurance, you should choose a plan that is both cost-effective and suitable to your way of living. There’s no point in being over insured for your life in a young adult age of 20, neither it is wise to invest high rate premiums for something you are unsure of.
Consider Recycling
Recycling has always been one of the best ways to utilize the sources available to use, and as a consequence, it helps you in reducing expenditure on new items you buy every week. Recycling can be as simple as utilizing a piece of waste paper for a fine piece of art. This way you save money on all those adornments you bought at a hefty price, from a mall. Similarly, you can get a great bargain on homemade appliances and outfits, which are no less than the ones in the showroom. You can also sell your old clothes or equipments on sites like Overstock and Craigslist. Every penny you save is the penny you earn.
Manage your monthly utility bills
The utility bills dominate the bulk of your monthly expenses and that’s the reason why, it’s imperative to manage it in a way that suits your financial plan. If you need to spend more on one utility appliance, you need to cut down the same on the other.
Electricity bills: In our childhood days, we were always advised to switch off fans and lights, whenever it’s not required. Actually, our parents were trying to save costs on electricity bills, and the same convention remains prominent today as well. Innovations in technology have led to a number of energy saving electrical appliances, which are very much inexpensive and worth an investment. Make it your habit to shut down your PC or Laptop rather than just keeping it awake the whole day. Use Air-Conditioners only when you feel the need to, and never go to sleep without switching off the TV. Small things which you don’t care about, often turn out to be a reason for debacle.
Internet and Telephone bills: Do you really need a high-speed internet connection at your home, given that you only need it for textual information and social networking? Do you need to talk for hours on your cell-phones when you can actually meet them in person? There are so many things we tend to misuse when it comes to networking with people. Unless and until, something is work related, one should avoid unnecessary texting, calling or usage of Internet data. In case you have distant relations and you need to call them up frequently, you can buy credits on Skype, rather than exhausting your money on international call rates.
Today’s generation has seen the evolution of Smartphones, which have become more important to people than anything else. People prefer to spend bulk on it, while naught for something more crucial to their lives.
Petrol expenditure: Is it necessary for you to take a car wherever you go? Do you consider driving to fulfill the quota of your pleasure? Have you ever figured out how much petrol you burned while laboring your vehicle? There are a number of reasons why a budgeteer never categorizes driving as a form of entertainment. The lesser you drive, lesser will be the chances of your vehicle’s engine decline and lesser will be the costs on it maintenance. An automobile should solely serve the purpose of providing convenience for transportation. Getting off for a long drive once in a month is acceptable, but if you make it a habit, then be ready to loosen your pockets too.
Stop eating outside
Too much of outdoor food does not only augment health issues, but also rip you apart of an amount that could have well been spent on healthy alternatives. Ask yourself a question, Do you really need to eat outside, especially when you have a wife or mother waiting at home”? Does it feel good to waste all that money on junk food only to end up with more calorie than your salary? Dining at a restaurant should be an occasional event, rather than a daily plan. Remember, no one’s telling you to compromise with your share of bite. Have a look at your options and choose the most viable ones, always.
Use your credit card smartly
Credit card in today’s generation is known to be a necessary evil. It can pull you out of a situation and push you in some trouble too. Maintaining a good credit is vital to acquire loans, insurances and other financial schemes at better rates. Bad credit is a black mark on your financial statement, and you may have to cover a lot more than what you forecast. Keep a track of your expenditure and get weekly statements. This creates a “Number pressure”, which allows you to control future expenses, as well as get used to managing monthly expenditures. You surely wouldn’t want to be the one overwhelmed with a huge outstanding amount, to clear in a matter of few days.
Change the bad habits
The good thing about bad habits is that they can be changed. Bad habits that are also expensive include, gambling, smoking and drinking. These three when combined together are sure to bring disaster in your life, both personally and financially. There’s no point in playing game of chances when the odds are totally against you. Similarly, no drunkard has ever had a positive vibe in life, no matter how much money he has. These practices are meant to bring irreparable destruction to your hard earned money, and what you get in return is merely a sack full of stress.
It’s high time one should recognize the importance of reducing unnecessary expenses on a daily basis, since you never know when life might take a drastic turn, leaving you with nothing, but regret.
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