It seems like
most people are living with less of an income these days. Whether you've got a
serious debt hanging over your shoulders or your work hours have been slashed, you
must take a leaner approach to your normal spending. However, lots of people
panic when the suggestion of frugal spending comes up because they think it
means reusing tea bags or missing out on social activities. The good news is
that a more frugal approach to spending can be tailored to your lifestyle
because it's all about spending money more intentionally. By prioritizing the
essentials and avoiding the luxuries, you can spend less, save more, and tackle
any debts that have built up. Here are some easy frugal tips that can transform
your bank balance in 2020.
Tip 1: Create a Budget
Your first step when money gets tighter is to always create a spending budget. You need to know exactly where your monthly income is going, even if that income has dramatically dropped. You can make all of the spending changes that you like, but if you don't have a clear budget, then you're going to spend more than you can afford. Consider adopting the 50/20/30 budget, which means that you allocate specific totals to set spending. Don't forget to put a little bit of money aside for spending on the fun!
Tip 2: Tackle Debt
Debt repayments
can be a massive pain, but the faster you can pay back those debts, the faster
that you can save money. Interest rates can be a nightmare and may even result
in you having to pay back a lot more than you borrowed in the first place. Even
by adding just a few dollars to debt repayments, you can cut down your interest
costs! Debt can be a considerable minefield to overcome, so make sure that you
know as much about your consumer debt lawsuit rights and protections as possible. If you can keep on making spending cuts on your daily
living, then you'll have money available to keep on chipping away at what you
owe, and that means a debt-free life will be much easier to achieve.
Tip 3: Make More Money
If your budget
has been seriously reduced in 2020, then it might be time to start looking at
alternative ways to make some more cash. Having extra income means that you can
save more money, but it can be challenging to find the revenue stream that you
work around your lifestyle and commitments. The good news is that there are
hundreds of ways to make money in the digital age. You could:
● Sell old possessions you no longer want
● Go to yard sales and sell the bargains that
you find
● Start an online business selling your
creative hobbies
● Use search engines that pay you for every
search query
● Do online surveys
● Start a blog and monetize it
The more that you
can pad out your income, even with small amounts of money, the less strain
there will be on your current income. Frugal living is all well and good, but
extra cash coming in can take a lot of stress from your life.
Tip 4: Plan for the Holidays
Christmas can
always be a stressful time financially, but it doesn't have to be. The earlier
that you start planning, the easier it will be to keep those festive costs
down. This can be the single most expensive time of the year, so you must find
ways to cut down on what you spend. Plan everything down to the cent, so that
you know exactly what your budget is going to be. There is no such thing as the
perfect Christmas, and it's easy to get swept up in the excitement of spending
money and treating the ones you love. There are lots of
online tips available for
those that are already dreading Christmas and are looking for ways to spend
less during the holiday season. Do some research and start making your spending
plan now.
Tip 5: Declutter the Home
We tend to
accumulate possessions, and the larger your household, the more clutter you'll
tend to own. You don't need to sell everything you own, but it's always a good
idea to get rid of those things that you no longer want or need. A good
declutter is essential if you're going all out and downsizing your home, but
even if you're staying put, there's a lot of value to be had from an overhaul
of your possessions. You could sell what you're getting rid of (making some
extra cash) or give it to charities. You can often even find things that you
own that you forgot about, saving you from repurchasing something. Try to:
● Fill a bin bag with old clothes
● Get rid of expired cleaning products
● Adopt a minimalist approach to decoration
Decluttering
means less to clean, less stressover mess, less spending
on the things that you don't need, and a home that simply looks and feels
easier to manage.
Tip 6: Cook Twice
If you're only
cooking one meal at a time, then you're wasting money and time. You should
never cook just one meal when you're starting to cut your spending. Crock Pots
can be a game-changer when it comes to living on a budget, but even simply
preparing twice the amount of food that you need can see a dramatic drop in howmuch each meal costs. Don't forget that every time that you turn on your gas hob or your oven,
it's going to be costing you money, so you need to make the most use out of
that energy spent. Never let a hot oven go to waste! You can always throw in
some muffins to bake off after roasting a meal, as the oven will stay hot for
easily long enough, and when you've finished that dinner, you'll have fresh
muffins too (always a win).
Tip 7: Washing Your Clothes
Every second that
your washing machine is on is going to be costing you money. That doesn't mean
that you have to wash everything by hand or head to the nearest river to get
clean clothes. Instead, check your washing machine settings and stick to colder
washes. Not only will this make each wash less expensive, but it also means
that your clothes will last longer. Cold water means your colors won't run, and your
clothes won't shrink either. That means you don't have to spend more money on
replacements, and all while making sure that your energy bills are reduced. Don't
forget to dry line your clothes when possible. This is more challenging in the
wetter months of the year, but on those warmer, breezier days, using a drying
line is an obvious money saver.
Reducing your
spending when your finances are limited is easier than ever, but it does take
planning and commitment. Consider your financial goals and create a budget and
plan to ensure that you can meet those goals. The more that you plan, the
easier it will be to get through every month with the least amount of stress
and the best possible quality of life.