1. Take Stock Of Your Current Inventory
If you’re trying to make the most of a limited budget, you’ll want to take a closer look at the things you have already. Consider what you do and don’t need. If you have items that are completely unnecessary or haven’t been used in years, it’s a good idea to sell those items. You can have a yard sale or list them on an online marketplace like eBay or Facebook Marketplace. Either way, you’ll have more cash in your pocket.
2. Look At Your Budget And See Where You Can Make Cuts
From there, you’ll want to carefully scrutinize what you’re spending your money on. Evaluate your monthly expenses, like the cost of your cell phone and internet service. Reach out to these companies to find out if there’s a less costly alternative. If you have a credit card with a revolving balance, you should speak to the credit card company and see if your interest rates can be lowered. If a substantial portion of your income goes towards takeout or restaurant meals, you should focus on preparing more food at home. These cuts may seem small, but the money you save can add up quickly. Should an emergency occur before you have had time to make such cuts you may want to look into high acceptance payday loans.
3. Decide On Goals And Work Towards Them
Once you’ve cut back on expenses and gotten rid of items you no longer need, you’ll want to start setting goals. It’s generally recommended to have an emergency fund that will cover your expenses for three to nine months. This might seem overwhelming, but it’s more manageable than you might think. Focus on establishing “S.M.A.R.T.” goals. These are goals that are Specific, Measurable, Attainable, Results-focused, and Time-sensitive. As an example, if you want to have $400 in emergency savings, you can focus on setting aside $35 each week for a 12 week period. If you manage to follow that plan, you’ll build $420 in savings, which is ahead of your goal. If that goal seems difficult to reach, you can extend the timeline. As an example, saving just $10 a week each year will give you more than $500 in savings each year!
4. Create Separate Accounts
Saving money won’t do you much good if you wind up spending everything that you save. Because of this, it may be smart to take a different approach to your emergency funds. Instead of stuffing cash in one of your drawers or keeping that money in your normal checking account, you should store those funds in a separate savings account. This means you won’t see the money, but you’ll still be able to spend it if there’s an emergency. Treating your emergency fund like a bill that you owe will allow you to quickly build up your savings. Best of all, keeping your money in a savings account will allow you to build interest. This means that you’ll have more money in your fund without any extra work.
5. Make Sure You Follow Your Budget
Doing this will require you to maintain discipline, plan ahead, and pace yourself. It’s common for people to track their expenses in their heads, or to occasionally jot numbers down on paper. However, it’s much easier to stick with your budget if you track expenses in a place you can reference at any time. You’ll also find that it’s easier to follow a budget if you take advantage of bargain shopping and coupons. Seek out more budget-friendly tips so that you can follow a limited budget.