It’s true that money makes the world go round, which is why it makes sense that we keep our finances in good standing for us to be able to live a comfortable life. Being in control of our finances is no easy task, but there is one effective way to do it – create a budget. A budget is a guide, a spending plan wherein you have a foresight on how much money you have and how you will spend it wisely. But what if your spending plan fails to achieve your financial goals? This is the time you have to fine tune it.
This pandemic continues to wreak havoc on global economy. As different variants of the virus emerge from time to time, many individuals are still unemployed and struggling to make ends meet. With a reduced income, spending power is weak. In this present situation where people are receiving smaller paycheck or having a limited income, they start improving their financial status by creating a robust spending plan and fine tuning it to suit their current situation.
Here are some tips on how you can fine tune your budget, so you can stretch it to the next payday and you don’t have to resort to having another loan for your daily survival.
Check your lifestyle. For people who love to explore ad unwind, budgeting and saving might not sound a good idea. It’s okay to continue the things you love doing as long as you designate a certain limit on how much you spend on entertainment, socializing and travel. Take into account your on-going subscriptions like cable TV, online entertainment, magazines, etc. Most likely these are not important and by opting to unsubscribe you can reduce your regular spending. Reserve a monthly budget for your short-term fun rendezvous or better save some funds for bigger future happenings.
Learn from your past experiences. By this time for sure you already have some take-aways from the challenges that you encountered especially during the pandemic. Your limited budget has turned the usual dine-out and shopping spree into home cooking or take-outs. To give you full control on how you spend your money, you can convert your retail therapy to practical and safer online shopping.
Cut down your credit bills. How many credit cards do you have? Financial experts suggest not having more than 3 credit cards – two you carry wherever you go and one you safely place at home. Review and analyze your credit cards to identify which one gives you the most value for your money and provides you with better rewards. Also, don’t forget to diligently pay your credit cards bills in full each month to avoid interests and penalties. But if you can manage to live without credit cards and pay in cash, that would be the best.
To stay out of debt, check here.
Ensure stability. Once you are able to properly sort out your monthly expenses and already have a good budget flow, the next step is to improve your financial safety net by saving. Experts recommend that you must set aside at least 6 months of your income as a protective cushion in case of any financial hardship. This may appear impossible, but it is actually very doable. The key is to start small then gradually increase your savings to achieve this goal.
Fine tuning your budget takes time, but once you figured out how it would work to your advantage, this task will soon just be a normal routine and you can have peace of mind most of the time, when it comes to financial matters.
