Creating and Managing Your Personal Budget, Part 3

Manage your budgets properlyCreating and Managing Your Personal Budget, Part 3

Continued from “Creating and Managing Your Personal Budget, Part 2”

Minimise your spending! To minimise the pain of cutting back on spending, there are a few practical adjustments that you can make to your everyday life that can make all the difference, perhaps more than you would expect.

Credit Cards: This is probably one of the main reasons these days for people to be in debt as it is so easy to use credit cards and be oblivious to the consequences until the bill lands on the door mat. You need to be disciplined with credit cards and start paying for items with cash wherever possible. This will help you avoid making a purchase if you havn’t actually got the money available.

If you decide to make a credit card purchase, be prepared to pay the balance off completely every month.  This will save a lot of money through avoiding high interest charges.  If you already have a credit card balance, then transfer to a card with a low interest rate.  Also, find a card that does not charge an annual fee.

 

Another way to save money is to use a packed lunch every day for work, rather than buying lunch every day. This can save a lot of money over a month on a regular basis. Sounds petty but can make big savings.

Try to use your mobile phone at cheap rate times and only make calls that are required rather than just for the sake of it. Mobile phone charges can rearly mount up over time and over a year can be quite a shock! See if you can change to a cheaper rate plan as your phone company will not tell you that there is a cheaper plan if they can make more money out of you.

It may sound old fashioned and tedious, but cut out and use any money-off coupons for services from papers or post junk mail. Even a 10% saving is better than nothing and can help your budget and everyone is looking for your business today and using these coupons can make a big difference.

If you have a mortgage or insurance policy’s for your car or boiler systems, look around for the best deals to help you. Mortgages are still very low and it is worth checking to see if what you are currently paying is still the best value for you.  Fixed rate mortgages can be a gold mine in saving you money! See if combining your car and house insurance can save you money rather than having separate policy’s.

Review your utility bill suppliers as dual fuel contracts are cheaper than single fuels and paying by regular monthly payment can help you offset the seasonal variations and it will help your budgeting as there will be no increases over the winter period. Be careful to monitor your monthly fee to avoid your supplier building up a bigger seasonal contingency than they rearly need to. More money in their account means more interest for them but doesn’t help your finances at all.

 

Continued in “Creating and Managing Your Personal Budget, Part 4”

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