How to Cut a Budget in a Tough Economy
Keep a record of all your expenses as you go through the month., Break down your expenses over the year into payments that are annual payments quarterly - monthly - fortnightly & weekly payments., Once you know where your money is going (expenses)...
Step-by-Step Guide
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Step 1: Keep a record of all your expenses as you go through the month.
These are your small expenses like a daily newspaper
- the purchase of a cup of coffee before work and go through your list of annual expenses.
You will be surprised where you can cut spending because you probably don't know how much of your money leaks out of your life unnoticed! -
Step 2: Break down your expenses over the year into payments that are annual payments quarterly - monthly - fortnightly & weekly payments.
Things like insurances
- phone bills
- utility bills etc. ,, If you have more going out than you have coming in you need to make cuts to get level or get ahead.
Decide here what lifestyle choices you can live without like say buying your lunch when you are at work or out shopping.
Pack a lunch or snacks from home & some good advice is to make them healthy choices.
Bad food choices are probably less expensive than fresh foods but you will reap benefits in other ways
- like medical expenses chasing ailments brought on by foods that are not nourishing .
Make small changes first of all & see how you cope. , Build in some "rewards" regularly so you don't feel disadvantaged.
Instead of having donuts with bought coffee every time, instead it to an occasional reward.
Give up the daily bought coffee & make it every second day you buy coffee instead.
There are lots of little things you can do everyday & still have a fulfilling week/life. -
Step 3: Once you know where your money is going (expenses) you have some idea what you can actually live without but first work out all you income from all sources like income from work done - sales from eBay and any other income you receive.
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Step 4: This is now your list of INCOME vs EXPENSES.
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Step 5: Look carefully at the things you are going to cut from your budget & keep in mind if you make a budget too sever you probably won't be successful sticking to it for very long at all.
Detailed Guide
These are your small expenses like a daily newspaper
- the purchase of a cup of coffee before work and go through your list of annual expenses.
You will be surprised where you can cut spending because you probably don't know how much of your money leaks out of your life unnoticed!
Things like insurances
- phone bills
- utility bills etc. ,, If you have more going out than you have coming in you need to make cuts to get level or get ahead.
Decide here what lifestyle choices you can live without like say buying your lunch when you are at work or out shopping.
Pack a lunch or snacks from home & some good advice is to make them healthy choices.
Bad food choices are probably less expensive than fresh foods but you will reap benefits in other ways
- like medical expenses chasing ailments brought on by foods that are not nourishing .
Make small changes first of all & see how you cope. , Build in some "rewards" regularly so you don't feel disadvantaged.
Instead of having donuts with bought coffee every time, instead it to an occasional reward.
Give up the daily bought coffee & make it every second day you buy coffee instead.
There are lots of little things you can do everyday & still have a fulfilling week/life.
About the Author
Sophia Sullivan
Dedicated to helping readers learn new skills in hobbies and beyond.
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