Today we are looking at 9 easy things you can do today to help lower your monthly budget. These are quick tips that will hopefully help get you in the spending less mindset!
If you’ve got goals to reach and looking for a way to make ends meet month to month, it’s probably time to start changing some of your spending habits.
Running out of money before payday comes back around is way too stressful.
Not only is it ruining your financial future, but it’s got to be taking a toll on your physical and mental health as well.
Apparently, being a stressed-out mess isn’t all that great for you.
However, we have some fantastic tips you can work through today, to get you back on track.
Work through these budgeting techniques to get you where you want to be.
Start with a Master List
Create a list of all the debts you owe.
List out all of it. Your loan payments, such as your car, school loans and mortgage and credit card bills are a good place to start.
It’ll help you get a very real picture of your creditors and how much exactly you owe.
Also include the due dates for each of these payments so your aware of what will be deducted when.
Then Create 5 Columns
On the list you create of all your creditors, you’ll then want to create 5 columns.
The first column will the creditor.
Then your monthly payment, the due date, the interest rate and the total amount you owe.
Adding in Other Monthly Spending
Now, on your list add in your other monthly payments.
Things like rent or mortgage payments, typical monthly gas cost, grocery costs and all your other monthly costs.
- Cell service
- Electric Bill
- Gas Bill
- Any subscription services
Don’t forget things like Netflix and magazine subscriptions or music subscriptions if you have them.
You can use your previous month’s statements to average out your typical costs.
You want your master list to reflect all of your monthly expenditures.
Figure out Your Priorities
Now that you have your master list, figure out which bills are most important.
You can highlight them or circle them to distinguish those from your other monthly payments.
Then take a hard look at the rest of your bills.
Which ones can you eliminate to help you lower your monthly costs?
Which ones can you cut out completely?
Which ones can you cut out for at least the next 3 months?
Who knows, after 3 months you may realize you don’t even need to spend money in that area.
Call Your Credit Card Company
Now that you have everything listed out on your master list, it’s time to call your creditors.
Call each one on your list and request them to lower you interest rates.
Make a note to which ones lowered their rates and which ones wouldn’t.
Then be sure to stop using the credit cards with the highest interest rates, and consider paying them off first.
Start Taking Action
Now it’s time to start taking decisive steps to reduce your spending.
If you’re paying a lot for cable, consider cutting out it completely and using a streaming service instead.
This is one easy thing my family stopped spending money on.
Instead, we opted to use Netflix.
It saved us $200 a month.
Bring in Additional Income
If your current budget leaves you wanting more, why not consider a second job or a side hustle.
The extra money can help pay down your debts.
Just recognize that you have the power to change your situation, and you call the shots.
Keep Tabs on Your Master List
Whenever you about to spend money, take a peek at your master list.
Ask yourself if you truly need what you’re about to buy.
If you still feel like you should buy, consider waiting a week.
If you want it a week from now, then you likely truly do want or need it.
But a good amount of the time you’ll totally forget about it.
Record Your Thoughts & Feelings
It’s a challenge to try to change something about yourself, and how you manage your finances is no different.
Write down how you’re feeling about adjusting your spending habits.
Be optimistic that you can and will change your financial situation.
A positive mindset can do wonders to help you breakthrough your money blocks.
If you are constantly finding yourself running out of money, vow to follow these strategies to change your unhelpful behaviors.
You have the choice to change your money habits in big ways.
You got this!