4 Budgeting Tips You Shouldn’t Ignore

It’s a new year and time to set some goals to make life more comfortable. If you’re looking for ways to save money this year, here are 4 budgeting tips you shouldn’t ignore:

Set Goals

If you’re going to save money and start budgeting effectively, having a specific goal to work towards is a vital step to help you stay disciplined. Think about that which you wish to accomplish with saving, both in the short and long-term. For example, you may want to save money for a holiday this Year or, you may be planning to buy a home in the coming years and you need to save for a deposit. Breaking your financial goals down into specific, actionable steps within a set timeline for achieving each goal and track your progress to stay motivated on your savings journey. 

Ditch multiple credit cards

When is it time to say goodbye to your credit cards with high interest rates? If you are carrying a revolving balance on your credit cards, you’re likely paying a lot of interest on that credit balance every month. That means it’s probably time to look for a lower-interest option. Consider transferring your balance to a credit card with a 0 percent introductory APR period, which will give you the opportunity to pay down your credit card debt without accruing interest over. Or if you have accrued debt over several credit cards then a debt consolidation loan is also a popular and effective option.

Debt Consolidation

Debt consolidation is a way to bring together multiple sources of debts into one. This means you take out a new loan and use that lump sum to pay off all your current debts. Once that’s done, you owe money to only one lender often on a lower rate of interest.

Done right, a debt consolidation loan can make your finances simpler and easier to manage. It can reduce the total amount of debt you have to repay – such as payday loans, credit cards, store cards, and student loans – usually by reducing your rate of interest. Learn more about Debt consolidation.

Lifestyle changes to cut down on costs

If you’re struggling financially, it’s time to cut your everyday costs down. Think about things that you can live without. Do you need that designed handbag or shoes? Is there a cheaper alternative that’s just as good? The same principle applies to technology, too. Could you choose an alternative brand rather than the latest, most popular laptop or mobile phone?

Maybe you should shop somewhere less expensive for your children’s clothes? After all, they’re only in them for what feels like 2 minutes! Use Facebook Marketplace, ebay or charity shops to add to your children’s wardrobe and even for toys. You’ll be shocked at how much you can save. You can also list some of your used or unwanted things to make some extra cash.

If you only use services such as Netflix and Amazon prime do you need a TV license? It may sound crazy, but If you don’t actually watch any television channels it might be something to cut back on!

These are just a few little tweaks that can go a long way to helping you save money and stay within your budget. Getting into these habits will help you save money, not just now, but year upon year.

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  • Thank you for sharing! I would also suggest analysing your energy consumption. Do you unplug chargers and all electrical appliances whenever they are not in use? Many people don’t as they forget that plugged appliances still consume energy even if they are in “off-mode”. This is not trifles, and unplugged devices account for 37% of your utility bills.

  • Think also about how you can save money on bills. Do you turn off the light every time you leave the room? Do you unplug the appliances when you are not using them? Is your air conditioner working effectively?
    More conscious use of energy will help you reduce your expenses.