Budgeting can be difficult, but it’s essential if you want to achieve financial stability. One of the reasons that many of us find budgeting so stressful and so difficult to stick to is that we make unrealistic goals. Setting goals that are almost impossible to follow sets us up for failure, meaning that we’re far more likely to bin the budget altogether and splurge on something unnecessary. We’ve got some tips that will help you create a budget that’s both effective for saving and actually achievable.
Use an Automated Saver
One of the simplest tools that you can implement is an automated saver. Some tools will do this for free, some at a small cost, so depending on your needs you’ll be able to choose the right one for you. This tool will be particularly useful for those on a relatively good salary, as it requires a little flexibility in your monthly outgoings.
One company that provides this service for free is Monzo. In order to use their service you’ll have to take out a debit card with them, but it’s totally free and gives you access to their range of services. In terms of saving, the most useful one is their ’round-up’ feature. This feature allows you to create a pot of money that they’ll automatically place money in for you every time you make a purchase.
It works by rounding up the amounts you spend and placing the remainder into the pot. For example, if you take a bus for Ksh30 then Monzo can round it up to Ksh40 for you, leaving you with a Ksh10 saving, that you won’t really notice. At the end of each month you can review the amount of money in your savings pot, you’ll likely be surprised at how much you’ve managed to accumulate.
Plum us a company that offers a more comprehensive set of budgeting options, but it does have a monthly fee so it’s better for higher earners. It’s important to remember that even if you’re in the higher earning bracket you’re not immune from bad budgeting. In your case, investing a small amount into something like Plum, could make a big difference to your savings.
Don’t Slash the Entertainment Budget
A lot of people immediately look to the ‘entertainment’ category of their budget as the main focus of all the cuts, but this can be really detrimental to our enjoyment of life. We need to find time and make enough money to enjoy the things that we love. If you’re working a minimum wage job and enjoy champagne and caviar, then you might have to make some different choices, but generally, most of us can afford to do some of the things we love and stick to our budgets.
For example, if you love casino gaming but it’s taking up a chunk of your budget that is larger than you would like, then you need to find a way to change that. Companies likes Vegas Slots Online make this process easier by reviewing casinos totally independently and ranking them against one another on factors such as the variety of games available, the security features, and in this case the most importantly, bonuses.
Many casinos offer sign up bonuses to people who haven’t played at their casino before and these can be generous enough to make you a considerable saving. If you are used to depositing Ksh4,000 into your play account each month, then a deposit match bonus could half that amount. All you’d need to do is continually switch casino providers. This tip is perfect for gamers, but it can also work for plenty of other hobbies too. Use coupon finding browser extensions to save money on the things you love, whilst still getting to enjoy them.
People around the world have been furious about millennials being told that they could afford to buy a house if they stopped doing things like paying for avocado toast, or eating pre-packaged sandwiches. While it is a little ridiculous to suggest a person could spend as much on avocado toast as they would the deposit for a house, there is a kernel of truth in there.
We are often suckered in to paying more for something simply because it is convenient. Pre-packaged sandwiches are more expensive than if you bought the ingredients yourself and made the sandwich.
So, if you often find yourself treating yourself to an expensive lunch during your working day, then consider swapping to a homemade alternative instead. The same applies for takeaway coffee and tea, taking a taxi instead of walking or taking the bus, or really anything that you could be doing cheaper if you just put in a little effort. Organisation costs nothing and it could help bolster your savings massively.