Categorized | Saving Money

Living on a Budget


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The Great Recession started in 2007 and has effectively ravished many of the finances and savings of those in the US. Changes in the ways people are spending and saving their money are in a direct correlation to the way the economy has treated them and their finances in the last few years. So if the recession has educated people on anything, it is the best ways to live on a budget. Here are some ways to effectively live on a budget.

One: Set a Prioritybudget 1

Setting priorities in your life are the best ways to categorize what is important and what isn’t as important. Think of setting a priority in your life as a steps one through five, with the top three being the most important goals you can try to achieve. Our surroundings are our culture which help us define how we intend to live our lives. Sometimes we tend to spend more than we had allocated in our predetermined monthly budgets. Whether it be a high definition television or that brand new gaming system, it is okay to splurge every now and then to keep your sanity. The key to living on a budget is understanding that every now and then there will be money to be set aside when spending for fun, but known that the best ways to save money for the future is to live the your funding budgeted out per month. Daily and weekly expense are to accounted for based on your average income per week or even every two weeks.

Two: Eating Right

Lately there has been a new craze out there for organic or all natural food. The easiest way to cut costs when trying to live on a monthly budget that allows you to save the better part of your take home money per month. You can still eat those foods even thought they tend to be more expensive than what has been traditionally on sale to the mass market. The best way to subsidize some of the cost is to buy store brand versions of the natural or organic foods because those foods are still held to the same standard as the name brand items. Another way to save money in your monthly spending is to use grocery coupons. Grocery coupons are making a rather big comeback. According to study in Time Magazine, in 2009 Americans used 3.3 billion coupons worth about 3.5 billion dollars. Since grocery stores tend to have a bigger mark up than their wholesale counterparts, it is only logical that the best way to save on your grocery list will happen when you use either store or vendor coupons.

So for example: If you are looking to buy a 4 pack of organic tomatoes and there is a brand name on sale for $3.99 but the store brand 4 pack organic tomatoes is worth $2.99 the clear cut choice is easy and even better if you have a coupon that takes an additional 50 cents off the purchase which only sweetens the deal for you.

Three: Do Not Lose Sight of Your Goalbudget 7

Often the biggest issue with living on a monthly budget that allows you to live more comfortably is that without personal self discipline, you will only flounder. It is okay to be frugal. The desire to hold onto and possibly grow your money for the longer term is nothing to be ashamed about because you are looking to stretch your money. However, it is not uncommon to see that many people who are as committed as you might be when it comes to living your life on a doable budget, tend to burn out or get bored with their budgets. As we’ve already recognized, every now and then you will spend your extra money on a new television or gaming station. That is perfectly fine as long as you don’t act out those desires all the time. The goal is to make your money go as far as possible so that you can buy the things that make you happy while allowing you to maintain your bills and expenses. Try not to lose sight of your goals as it is only through dedication and the will to achieve your long and medium term goals.

Living your life on a budget that effectively allows you to live the life you want to live is thoroughly possible as long as you are willing to do the work upfront to make it happen. Set your priories to help you have a plan of action. Eat the foods that make you happy and keep you healthy even if they cost you a little bit more. And try not to lose sight on your financial goals because by following these three steps you will be well on your way to achieving you financial success.

 

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