Budgeting is a skill that can be learned. It’s not always a something that comes naturally. In the beginning, learning to budget your money can be tough. However, just like any other skill you’ve mastered, with practice, budgeting can become a productive habit. The first step is getting started.
We’ve reviewed a few couple of tools that can help you get started.
If you are having trouble paying for necessities with the money you bring in, it may be time to give your wallet a break and cut back on expenses. Here are four things you can do to cut your spending.
Even if you think your budget is as tight as it can be, there probably is some slack in it somewhere. For example, you may have more cable TV channels than you really need or use or you may be eating out more than you need to. You can save a significant amount of money by trimming any fat that remains in your budget. Look for things you are paying for that you don’t really need. There is always bound to be something you could cut back on.
Another way to save money in your budget and give your wallet a break is to consolidate debt to lower interest rates and bundle services and products to lower monthly fees. For example, using a balance transfer to move your credit card debt to a card with a lower interest rate can save you money on monthly debt payments. Bundling insurance policies and cable and internet service can reduce the costs of those because companies usually give discounts when you buy more than one of their products or use more than one of their services.
Sometimes the best way to give your wallet a break is to generate some extra money. One way you can do that is to sell things you own that have value. For example, if you have a coin collection, you can take it to an expert in coin grading, such as those at Rocky Mountain Coin Inc., which could help determine the value of the coins, can help you find out how much money you can generate by selling it.
Sell your time by considering freelance work to generate extra income. The beauty of freelance work is you can schedule this around your regular day and work remotely. Toni shared how she generated an extra $1000 by taking on freelance work.
There are many personal finance apps on the market that can help you keep track of your spending and better budget your money. We’ve mentioned two that you can check out for free.
Many such apps will even move money between accounts, such as moving excess money in your checking account to your savings account. This can help you keep a better handle on your money and look for opportunities to save.
Budgeting doesn’t have to be hard. It’s basically a process of telling your money where to go. Determine what expenses should be paid prior to spending will help Give Yourself a Raise without getting a second job. Our free ebook offers 21 helpful tips to give your wallet a break and get back on your feet financially.