
Ever felt like your money was just slipping through your fingers? Without a household budget, that is likely to continue. Does it seem like you work hard all week and the money is gone before you get to enjoy it.
You need to learn to budget your money wisely. Get your income to stretch beyond the bare necessities and onto the luxuries of life.
Where to start? Well how much is that income? Included benefits, child support, pensions etc. in that figure? Next the obvious part, we need to try and spend less than that! So here are my best household budgeting tips.
How to Budget Your Money Wisely.
The First and Most Important of my Best Household Budgeting Tips.
You must understand your spending habits, you cannot possibly organise a household budget without knowing what you spend your money on currently. So get out a pen and paper (or use a spreadsheet, there are plenty of free programs available, just do a search), get out your bank statements and make a list.
Begin with all those regular things, mortgage (or rent), council tax, utilities, T.V. licence, loans, pension contributions, life insurances the sort of thing you are likely to have on direct debit (if not look into it, it is often cheaper to pay that way), these are the easy things to record on your household budget.
Others may take a little more time. What do you actually spend on food, clothes, car repairs, going out, and all those other little sundry items that soon add up? That’s the next job; record all those things over the course of a month. I bet it’s more than you thought!
The Second of my Best Household Budgeting Tips.
Get organised, consider all those things you pay for every year, road tax, boiler service, car service, M.O.T., car insurance, house insurance, holidays, etc. Can you include these into your household budget by saving on a regular basis or paying on direct debit (if there is no credit charge for doing so)? Make sure you add in a provision to clear any debts.
The Third of my Best Household Budgeting Tips.
Eliminate the obvious. Obvious really! It’s amazing the things people still have on direct debit that they no longer use or need. Magazine subscriptions you no longer read, maybe a gym membership.
Another major strain on the household budget is food, more specifically wastage. It is estimated that 8.3 million tonnes of food waste is thrown away every year in the U.K. alone. That is £680 per year for the average family. In addition eliminating this waste would also reduce the country’s carbon footprint by the same amount as removing 1 in every 4 cars from the road.
So Fourth on my List of Best Household Budgeting Tips.
Plan out your meals in advance, only buying what you need for them. Also make sure you use up the leftovers or even have some left on purpose for other meals. It’s possible you will find that grocery shopping on line helps to control the household budget. Even taking into account the delivery charge, it eliminates impulse buying.
If you need some help in the thrifty cooking department and specifically how to budget your money wisely on food, try reading “Economy Gastronomy” by Paul Merrett and Allegra McEvety, if your plan is to reduce your working hours you will have more time to cook from scratch and save yourself more money.
The Fifth of my Best Household Budgeting Tips.
Consider alternatives to your current suppliers, we all know that you can find a better deal and reduce that household budget if you shop around, so take the time to. Some utility companies even pay happy customers to introduce new customers to them.
Does your mobile phone tariff suit your usage? Call and ask your network if you are not sure. Does your life insurance still fit your needs, or can you find it cheaper elsewhere.
If you have a credit card debt, can you transfer to a lower (or zero rated) card? If not do you get cashback, or bonus points? It’s relatively easy to save enough to pay for breakdown cover and days out to the tune of about £600 per year at no cost.
Does your bank account pay a good level of interest? Perhaps an account with perks would save you more than it costs.
Do you just buy petrol from the first place you find, or do you watch the prices? As we discussed above could cooking more food from scratch reduce your household budget.
The Sixth of my Best Household Budgeting Tips.
Be pragmatic. Do you really need Sky T.V. (or all the packages you have)? Does your family need to run two cars? What about spending time in your own allotment growing your own fruit and vegetables?
Could you change the mortgage to interest only for a while?
Perhaps you could start your night out earlier so you can catch the last bus home instead of taking a taxi? Or have a meal out mid week to get a deal rather than paying full price at the weekend?
The answer to some, or maybe all of these questions may be “no”, everyone is different, but I am sure you can come up with a few ideas of your own that are palatable alternatives to help control your household budget.
Maybe this is not enough, perhaps you also need to develop an additional income as well as controlling your expenses with your own household budget. Is that appealing to you? Learn how to create your own part-time business working from home.