Top 7 Ways to Live on a Limited Budget in 2024

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So important to keep track of your budget. Here are ways to succeed :

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.

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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 stress over 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 how much 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.

Tip 8:

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.