Yes, you have too many expenses, and in order to have an effective budget in place, you are going to have to cut back on some of your expenses.
While you are creating your budget, everything goes perfect until you get to the end after doing all the math involved just to realise that you don’t have enough money for all of the things you need to do.
Wondering where you might have possibly gone wrong? You probably already know the answer was mentioned above.
Let’s look at some of the ways that you can cut down on expenses:
- To start with, you should write down all of your expenses, no matter how small or unnecessary it might be.
You may think that R50 a day isn’t much, but what about if you spend that amount every day for a month – at the end of the moth you will see a large amount – an amount that you could have saved for something more important.
- Do you love eating take-away food or going to fancy restaurants to eat out?
It is great and delicious, but it is a bad habit that can cost you a lot of money. Or what about movie tickets? Things these days are expensive. Why not rather grab some homemade popcorn and relax in front of the TV with someone special? It is sure to be a much more relaxed and romantic atmosphere.
- Have you ever considered making use of a carpool to work?
This could be a great solution to cutting back and saving money, especially if a few of you are living near each other. Not only will you be saving money on gas, but also reduce the wear and tear on your car.
- You can also save on your electricity bill by installing LED lightbulbs which are more energy efficient, or what about if you try and lower your hot water temperature? The hot water heater / geyser are a major energy user.
So if you are looking for ways to cut down on your monthly expenses, try these few (to begin with) and you will be sure to see a difference in your budget and can lead a debt-free life.