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 cliché, 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.