Budgeting is one of those things which every adult has to do at some point in their lives, and even if it isn’t the most exciting job to do, it can be incredibly useful for you during your adult life. Managing your money is hard when you first start out, however there are some really simple hacks which you can use this year to make it much easier.
Track spending for a month
The first thing you can do if you want to start learning how to save money is to track your spending for a month without changing any of your habits. In order to know how you want to improve on your spending and budgeting, you need to know exactly what you are working with. Take the time over the next month to spend as you normally would, and then print off your bank statement and take a good look at it all. How much did you spend on clothes? Snacks? Alcohol? You will start to see patterns and this will help you decide how you can change your habits.
Take out a loan
If you are short of money right from the start, it might be wise to take out a small loan as you start to reshuffle your money habits. You can choose private money loans and they will help you to get yourself back on track with your spending for the next few weeks and get yourself working with better habits without worrying about money for a while. Make sure you can pay it back as soon as possible to avoid going into debt.
Pay with cash
Convenience buying is the worst habit we have as people these days. We can pay with our phones, on the laptop and with a thin piece of plastic. The issue with spending money like this is the fact that we end up spending too much money. Try bringing cash out with you for a week and go into all of the same shops as you normally would. When you have cash and you can see it depleting, it makes you more aware of what you are losing and it can make you less likely to spend. So get the cash out and leave your card at home!
Curb unnecessary spending
Most of the money we waste is spent on random things. It could be a coffee that you buy each morning when you arrive at work, maybe the odd takeaway here are there, or even some clothes that you buy online ‘because it’s on sale’. All of these small costs accumulate and it can become an expensive affair for you to deal with over time. Make sure that you curb these expenses and make sure that you think about what you are buying before you buy it.
Learn to cook
Take the time to learn how to cook some great foods this year because you will save so much money by doing so! If you always buy in ready made meals and eat out with your friends you will be spending a huge chunk of money which can be better spent elsewhere. Think about learning how to cook some easy big batch meals such as curry, chilli and pasta baked which will keep your family fed for a few days during the week and will save you a ton of money in the long run. Check out some cheap meals on Pinterest for inspiration and get cooking!
Pay off your debts
Debt is the worst thing you can suffer with as an adult. Not only is it like a rain cloud over your head, but it can also have a big affect on your credit score and this will prevent you being able to take out loans for things such as a phone, car or even a mortgage. The first thing you should be aiming to do when you start trying to budget is to pay off your debts. Start with the highest debt you have and work your way done until you have paid them all off. It might take some time, but with consistent payments and saving you should have no issues.
Have a goal to work towards
It is important to have some motivation when it comes to saving money, and you will be more likely to save up if you know that you are working towards something special. It could be saving up for a house, for your wedding, a holiday or even a car… make sure you have a goal in mind and this should motivate you to get saving.