When your financial habits are starting to cause pressure or tension in your life, it’s best to approach the situation with a conservative outlook in the form of budgeting. You might find multiple reports stating its impossible to live comfortably with your family on a tight budget, however, it’s been repeatedly achieved, proving that it might be hard, but not impossible.
There’s been many families that have had to tighten up their finances in order to get out of a tough spot and many sacrifices had to be made – but it was possible.
1 . Create a working budget
Don’t just create a budget for the sake of it, as a budget is more important than just a piece of paper you can forget about. Create a budget you can truly work with because it’s important to make it realistic and executable.
When creating a budget, you need to understand where you can make cuts in order to save money. It’s important to identify how you allocate your income to your responsibilities and save money effectively.
2 . Priorities
In today’s society it has become very common to get sucked into a whole world of spending more that you should, to the point where we don’t differentiate between necessities and luxuries. This becomes a problem as we end up spending more on things that we want instead of what we truly need.
When working on your budget, you need to prioritise what is important, such as the basic necessities food, utilities and bills. Luxuries like going out to dinner or purchasing the latest gadget that are not really necessary can be avoided.
3 . Set your goals
In order to start anything, it’s important that you set a goal. Find the reason you are trying to squeeze your budget. Are you trying to pay off debt, or saving for a new car, Or perhaps even a house. What is your goal?
Once you’ve decided on a specific goal, it can make sticking to the budget a lot easier. You’ll have a reason to stick to strict rules and be motivated to work your hardest to improve the situation.
4 . Take a break every once in a while
When you are only focusing on your budget, it can burn you out, but it’s important to know you can give yourself a small break. This doesn’t mean you have to spoil yourself and make a large dent in your savings, but it’s about rewarding yourself for the hardwork.
There is no reason to feel guilty just because you indulged yourself on something you wanted. They do say too much of anything is bad and budgeting also applies to that saying. Give yourself a break and treat yourself, maybe a dinner, a night out, going to the movies, or something perfect for you.
5 . Be flexible
In order to live comfortably on a tight budget, it is important to learn to be flexible. Flexibility will mean that instead of buying the popular brand products, you are open to giving a chance to store brand products that will offer the same quality for a much lower price – but being flexible extends so much further than just changing your product brands. Being flexible means that you can change your lifestyle to find different alternatives to satisfy your needs and necessities without having to mess up your budget. It is possible to be live comfortably with a tight budget.
Being flexible to how you finance your goals can provide some great opportunities. Maybe you could undertake a free PPI check to see if you’ve unwittingly paid in the past, could take on a small weekend job or discussing your financial management with an advisor.
Living comfortably with a budget is more of an attitude than anything else. It won’t be easy, many sacrifices will have to be made, and at the beginning you will think about quitting because you find it pointless, but we can assure you that it will be worth it.
Set goals, start planning for what you want to save and start living on a realistic budget to help you achieve what you want without having to risk your responsibilities.