It’s easy to get carried away when splashing out. Sometimes even the essentials can be a struggle. If you’re beginning to feel the pinch, here are our 7 golden stress-free budgeting tips to make life a little easier.
1. Save on essentials
It doesn’t take much for the weekly food shop to spiral out of control. Shop after shop, this all adds up.
- Prepare a shopping list beforehand and stick to it.
- Look out for the best deals like two-for-one offers on non-perishable items that you know you’ll go through.
- Think about where and what you buy, too. Some major retailers are better value than others, and frequently supermarket own-brand items are more competitively priced than their big label rivals.
2. Save money from energy
One of the best budgeting tips is to shop around for the best energy tariffs. This can seem like a drag if you’re short of time, but it’s usually in your best interest. After all, when did you last hear of an energy company giving a loyalty bonus?
All the best deals go to new customers, so you can save a lot of money by changing suppliers frequently. Look at market comparison websites and find the best deal for you.
3. Be ruthless with your leisure spending
When money’s short, cutting back on non-essentials is an obvious thing to do. Leisure is one area that’s often ignored. Gym memberships and holidays abroad can be a big drain on your finances.
There’s also no asset, nothing to sell if you need to, as would be the case if you’d bought a car or a piece of furniture.
Consider adjusting your leisure habits so they don’t cost quite so much.
4. Cut the cost of your debts
Credit card interest can quickly burn a hole in your pocket. If your bills are low it’s best to pay off your cards promptly every month. Only leave it over if it’s a really difficult sum to handle in one bite.
The APRs on credit cards can be very high so use them as little as possible.
Be clever with loans
If your credit card debts are already mounting up, consider consolidating them through a loan. Secure a loan, and use the money to pay off those bills, leaving you with just a single debt to manage.
Of course, if you need to take this approach, you’ll need to stop spending more on the plastic, otherwise it’ll defeat the object.
5. Make extra cash where you can
As budgeting tips go, you might think this one is easier said than done, but there are several simple ways of making extra money that almost anyone can do.
- Ensure that any savings you have are performing as well as they can. You can improve their performance by changing savings products to find the highest interest rates.
- If you don’t need to access your money in a hurry, look at setting up an ISA.
- Consider freelancing, though be aware your employment contract might not allow it.
- Sell items you no longer need using online auction sites.
- You can also rent out your spare room to bring in some extra income.
6. Use a budget planner
This can be a sensible way of monitoring your income and outgoings. There are lots of budget planning tools available that can be downloaded onto your computer to help you visualise your financial dealings. Most of these will allow you to draw up your monthly budget and help you to take control of your spending.
Find out how a quick and simple cash flow forecast can help you to start saving.
7. Get debt help early
The most crucial element of good budgeting is to be honest with yourself. If you’re clearly spending more than you earn it’s urgent that you seek clear expert financial advice before you run into serious trouble. Don’t leave it until the bailiffs are knocking on the door.
