Financial anxiety can influence aspects of your life, resulting in physical and mental exhaustion. Here’s some simple budgeting tips to guide you in managing your spending.
It’s never been more important to keep on top of your finance game. Effective budgeting is a great way to monitor and track your monthly expenses. However, most people don’t understand how to keep an actual account of how much they’re spending. The result is they fall in the same pattern of spending as before and never achieving their goals in budgeting. Save yourself from disappointment by trying these 10 simple budgeting tips.
Tip 1: Track your daily spending
Keep an account of how you spend your money on a day-to-day basis. Record even the cheapest things you’ve bought, may it be tissue paper or candies. There’s a variety of best budgeting apps Australia has to offer, namely MoMa, Pocketbook, Goodbudget, and so much more.
Tip 2: Calculate your monthly spending
Compute the average amount of your weekly spending and multiply it by 4.5 to come up with an estimate of your monthly spending. Using the estimate, try to set aside at least 10% of your income for your savings and the rest for your expenses.
Did you find yourself confused over how to cover your monthly expenditures after you reserved the saved amount? You may have to change your spending habits.
Tip 3: Use a credit card only when necessary
If you’re working, you may not have to keep more than one credit card. Look for credit card companies with lower interest rates and make repayments consistently within the interest-free period.
Tip 4: Pay off and try to avoid debts
If your previous spending habits have made you racked up debts which are impossible to pay off and creditors are knocking on your door, you may need financial advice.
Debt mediation works by agreeing on an informal arrangement between the lender and the borrower where the monthly repayments are adjusted to the borrowers financial standing. Both parties will benefit from this as it enables the borrower to pay back the debt while avoiding defaults and the risk of bankruptcy.
Tip 5: Cut fuel costs
Keep a to-do list of all your errands and try to do them in one day as a way to reduce excessive car trips.
Tip 6: Carpooling
Another way to reduce fuel costs is to try arranging a carpool with your colleagues who live close to you. This way will also yank out everyone from the stress of driving to and from work during rush hour everyday.
Tip 7: Walking to work
If you’re living close enough to your workplace, walking is a great way to get in shape and save more money. Another good option to commute to work is by investing in a bicycle. As your means of transportation, bicycling also decreases your carbon footprint.
Tip 8: Shopping at supermarkets
This budgeting tip you can definitely follow. While you’re at it, use your discount coupons to help you save lots of money. Stop the takeaway pickups and food deliveries and just cook your meals at home.
Tip 9: Learn to cook and eat at home
One more entry to these simple budgeting tips is to reduce the frequency to eat out. Learning how to cook is a valuable skill in life and could see you saving hundreds of dollars in the long run.
Tip 10: Set aside more money to pay off your mortgage
Once you’ve created a successful budget, it’s a good idea to put your extra money in paying off your debts faster. This lessens your worries each time you do and could help you avoid paying extra interest charges.
Start your savings journey today with a head start by joining the MoMa family, one of the best budgeting apps in Australia, for valuable guidance and insights to your finance!
If you liked our “10 Simple Budgeting Tips From MoMa” and took away some valuable information, check our blog space regularly for more updates on the best budgeting apps in Australia.