If you’re wondering where all of your weekly money has gone, it’s probably gone in the mysterious void often known as household spending. It is a common misconception to underestimate a household’s humble budget rather than investing in a house or buying a car.
Budgeting for better savings without compromising quality of life requires careful thought and planning. As the old saying goes: it’s not what you do, it’s what you do with what you do.
Take control of your household budget and learn how to stop cash flow with the following tips.
- Keep written or typed records: While this may sound rather clichÃ©, it’s amazing how few people manage to follow this sound advice. It is not possible to remember where you spent the money and how much day to day. It is a much better idea to record the data in a journal or an Excel sheet.
- Buy in bulk: Large sizes often cost a lot less than small packages. Detergent, cooking oil, sugar or rice: buying in bulk will cost less and not go to waste – after all, you’ll be using it now or in two weeks.
- Use Discount Coupons and Deals: It’s a common tendency to throw away any coupon that offers, say, $ 5 off a product. But few expenses add up. So save these coupons for your next purchase.
- Separate Regular Monthly Expenses: Expenses such as phone bills or cable TV payment that recur on a monthly basis should be budgeted separately. This way you can identify the amount remaining available for other unforeseen expenses.
- Trade DVDs, books, and CDs with neighbors and friends – it’ll be cheaper than buying or renting yours all the time.
- Turn on the heat at specific times: Buying an automatic timer can help control energy expenditure by minimizing runaway usage.
- Investigate phone and internet companies to find out which one offers the best value for money. There is often a significant disparity in pricing which can end up being quite expensive.
- Budgeting for better savings requires constant vigilance, supervision and focus. But it does come with regular practice. An individual can save up to $ 300-400 per month by following these seemingly simple family budget tips. But if you do the math, $ 300 a month is $ 3,600 in one year and $ 36,000 in 10 years – all thanks to the savings on the household.