How To Live A Budget Friendly Life
When it comes to financial freedom, you will most likely need to develop a budget and stick to it. After all, if you don’t properly budget your income, then you won’t be able to save any money, which is quite disastrous over time. Savings are essential not only for a rainy day but you can invest those savings and reap returns that give you the financial freedom that you truly desire. With that said, we will now look at a few tips that will help you to formulate a budget as well as how you can stick to it on a daily basis.
First of all, you will need to know exactly where you’re spending money on a daily and monthly basis. Many people actually live in debt where they spend more money than they earn. This is something you should avoid and you should always seek to spend significantly less than you earn so that you can save. If you’re not good at budgeting yourself, you may want to seek the help of a financial advisor. However, you should aim to save at least 10% of your income every month. If you have a hard time doing so, then you should create another savings account and place a standing order of 10% of your income to it. This will make saving automatic and you won’t have to think about it.
Now, when you have to live on a specific budget, it can be difficult to do so while trying to live a happy life. Thankfully, there are many ways that you can make your life a lot more budget friendly and quite enjoyable. The first tip is that if you buy a lot of coffee throughout your day or even once a day, this can add up over time. To put it into perspective, if you buy only one coffee per day from Starbucks or your favorite coffee shop, it will probably cost you about $5. In one month, you’d have spent $150 on coffee that you could have saved or used in another manner. Now, this doesn’t mean you have to ditch your coffee habit, but instead of buying it every day, you can bulk buy your own coffee and make it yourself, for a few cents per day. You will actually be able to enjoy higher quality coffee for a lower price and save over $100 per month.
Next, many people also spend a lot of money buying lunch or dinner on a daily basis. As a result, you’d be spending hundreds of dollars on food that could be avoided. Instead of eating out, you can easily make your own meals for only a couple of dollars each. Sure, it will take a little bit of time to buy groceries and do meal prep, but you will not only save money but also improve your health. When you make your own food, you’ll have total control over what goes into it and this will reduce your intake of unhealthy fats, salt, excess carbohydrates etc. Even if you’re not a very good cook, there are thousands of YouTube videos and recipes that are easy to make and follow along with. Your body and your wallet will thank you.
Lastly, in order to have a great but budget friendly life, you may need to adjust your social life. Instead of spending your weekends clubbing or going to expensive restaurants with friends, you can do movies at home, go to nature parks, take up a hobby, do sports etc. These types of activities barely cost anything at all and they greatly improve the quality of your life.
In closing, we have just looked at a few guidelines that will help you to live a budget friendly life. Be sure to put them into action and you’ll soon be able to save a lot more money to achieve your personal and financial goals.