Making ends meet is hard enough for most working people. Throw a couple of children into the mix, and it becomes harder still. Making the budget work for a small family is frustrating; it feels like a constant battle. Naturally, you want to treat your kids and your family to nice things and holidays. You also want to plan and save for the future. It all just feels futile when your income only just covers the essentials. Today, we’re going to show you how to make that money go a little further.
Regular readers know that we’re full of useful tips on frugal living. But, that doesn’t mean cutting out all the luxuries in your life. Living on a budget shouldn’t mean giving up the things you love. At least, not all of them! We’re going to start with the smaller things, and work backwards. We’ll begin with the essential costs, and figure out how to slash savings from each of them. With the money left over, you can treat yourself to a family holiday, or put it in a savings account for the future.
Make a budget
The first thing to do is actually create a workable budget. List your total incomings (from every source). Then track and record every essential outgoing. We’re talking about bills, mortgage or rent payments, and food. These two figures provide your overall balance. First we’re going to cut down those essential payments to free up some more money. Second, we’ll help you use that leftover cash more effectively. This is the essence of good budgeting.
Rethink your insurance and utilities
Most of us find an insurance policy, and then stick to it for a long period of time. The truth is, that isn’t always the best tactic. We’re paying car insurance and home insurance without a thought to a cheaper alternative. Lucas Velez from Comparaencasa suggests taking some time to find a better deal. Using price comparison websites, you’ll quickly find a better deal on your insurance. Most companies run entry deals for new customers. You can take advantage of these, and renegotiate your insurance bills. You can do the same with utilities like phone and internet costs.
Reduce energy bills
There are two main ways to slash your energy costs. The first follows the same process as above. Look around for a better deal or a cheaper alternative to your current option. But secondly, you can actively lower your bills by reducing your energy consumption. There are tons of small things you can do around the house to lower your reliance on energy. They might seem like small changes, but they add up to a big saving over the year. Start by turning the thermostat down a notch. You won’t notice the temperature difference, but your bank balance will. Use energy efficient lightbulbs, and start turning appliances off when you’re not using them.
Use coupons
Here at 24/7 Moms, we’ve got an entire section dedicated to coupons. We hunt out the best savings on the web, and pass them onto you. Before you buy anything (and we mean anything) online, look for a discount voucher or coupon. More often than not, you’ll find something. You can also use cash back websites. Don’t ask us how they work, but you can get up to 20% back on most online purchases.
Plan your shopping
We don’t know about you, but we seem to spend all our money on food! There is a way to limit your budget when it comes to food. Set yourself a strict amount, and plan the shopping in advance. You can even order online if that’s easier for you. Doing this will make sure you don’t succumb to impulse purchases. You’ll also end up with a cupboard full of good food.
Think about using the car less
Ask yourself how much you need to use the car. Our vehicles eat up most of our money through petrol, tax, insurance, and maintenance costs. The less you use it, the lower your outgoings. Try and get the family active by walking or cycling to work and school. Alternatively, make use of public transport more often, and cut out the car journey’s wherever possible.
Avoid credit cards
It often seems like credit cards are the answer! You can borrow money quickly and simply. But just be careful. Credit cards can lead you into a false sense of security. Ultimately, they cost you a fortune in fees. Frugal living means living within your means.
That’s all for today, folks! Stick around for more finance tips!