Living on a budget: Tips and tricks for survival

Unfortunately, only a handful of people residing on this planet have their own gold mines and vaults of luxurious diamonds at their disposal. As for the rest of us, ‘average Joes’, life and all it has to offer, comes with a budget. Given the fact that today’s world faces recession-ridden times, the spending power of a common citizen takes a tremendous blow and hence, budgets become survival kits. 

Saving money is never a bad thing – no matter where you are at in your life. It is always hard to stick to a limited budget when one is bombarded with endless consumption opportunities and temptations. If you find yourself facing difficulty in making ends meet or being unable to keep your finances in check, here are a few smart tips and tricks to help you get by: 

1.       Write it down

The first step is to start keeping track of where your money is coming from and where it is going. Failing to keep track of your spending generally ends with a case of a tiny heart failure when you decide to check your bank balance or when the credit card bill arrives on your doorstep with numbers you fail to comprehend at that point in time. You do not have to keep fancy financial journals, all you need to do is record all your transactions (no matter how small or big) in a small notebook or even on your Smartphone – depending on whatever you are more comfortable with. This way, you will be much more aware of your spending habits. Even the smallest of things, like a cup of coffee, add up when they are being purchased every single day. Keeping track also helps you identify where you can afford to cut back in order to meet your budgetary requirements. 

2.       Start eating at home as opposed to going out

Eating out is generally much less cost-effective as opposed to getting groceries and cooking at home. Cooking yourself will actually help you save A LOT of money. This obviously does not mean you confine yourself and vow to never eat out – you should eat out once in a while for a change (preferably once a week), there is nothing wrong with that. To make things easier for yourself, cook in larger quantities – you can store/freeze the extra food in your fridge and reheat it for the next couple of days or weeks or save it for lazy days where you do not feel like cooking. 

3.       Make your own lunch at home and take it to work

Make it a point to prepare your lunch at home and take it to work with you. This way, you will end up saving quite a bit which you would have otherwise spent on cafeteria food or local restaurants during your office’s lunch break. You can even tag along with your fellow colleagues if they want to go to a certain restaurant for lunch and you can simply take yours with you (to places that allow external food, of course) or you can just ask your friends to order takeout instead. 

4.       Choose cost-effective transportation

For most of us, a big chunk of our paychecks goes into our transportation costs. Work out more cost-effective means of transportation like car-pooling – find people who live in your neighborhood who are willing to divide and share the transportation costs, which can include colleagues, fellow students etc. Try alternating between taking the local bus or trains on some days of the week– this will also help reduce your transportation costs. 

5.       Identify what you ‘want’ and what you ‘need’

Every time you go to a grocery store, a shoe store, or any store for that matter, ask yourself this one basic question: “Do I NEED this or do I WANT this?” This will essentially give your perspective on whether the item you are eyeing is a necessity or a personal luxury. If you feel yourself tilting towards the ‘luxury’ spectrum, put the item down and walk out. You will thank yourself when you check your bank account later on. 

6.       Reduce, Reuse and Recycle

Instead of buying new stuff every season, perhaps you can make greater efforts to preserve the items you already own. This can range from clothes, shoes, bags, stationery, kitchenware, phones etc.  For example, if you feel your shoes and bags wear out after a certain period of time due to humid weather, you can wrap them up in cloth and air-tight bags in order to prevent the moisture from decaying them. Reuse and recycle whatever you can when it comes to household items as well. Figure out ways you can make existing items last longer so essentially you will end up reducing, reusing and recycling various things and end up saving quite a bit every season. 

7.       Stay within your means

Every person is well aware of their means and what they can and cannot afford. Do not put yourself in positions where you have to take unnecessary loans or fall into debt. Refrain from using credit cards – move towards either using debit cards or plain cash. Do not overstep your own limits and keep a conscious check on yourself and your spending so you do not find yourself in situations that are beyond your means and affordability. 

Hopefully, these little tips and tricks prove to be cost-effective and help you manage and organize yourself whilst living on a budget! It may be a bit hard but it is not impossible and certainly not unachievable. Start from today and you will see yourself saving up in no time!