Simple Ways to save with a Budget and pay debts earlier
They said we were in a recession and reduced the interest rates. The economy improved so we started spending again. As confidence builds, we go and borrow for our new home and again they hit us with increased interest.
Now we need more than ever to cut out those little extras. Of course, it will hurt our pride, not being able to stop for that cappuccino every morning, and missing those snippets of gossip will hurt even more. Realistically, we have to rid ourselves of debt, especially those credit cards.
Budget and keep records
You need to sit down and add up the total of your incomes for a month. Then make up a chart of all your expenses, rule up a page with several columns with the names of everything from the grocer to the newsagent, mortgage, rates, gas, electricity, medical and hire purchases for the whole year. You need to include a certain amount for emergencies, like repairs and illness.
Fill in the accurate or estimated costs, don't forget the cash paid expenses and add them up.
Divide this by 52 if paid weekly or by 12 if paid monthly. You will now have an idea of how much your weekly or monthly expenses will be. Put this money away into a savings account and only draw out the expenses as they become due. This way you will always have enough to pay for your bills as they come in. Do not overspend on the allotted amount for grocery shopping.
When shopping, ALWAYS take your list DO NOT be tempted to buy extras, nor spend more than you allowed for on your budget. You have to go without.
Fill in the records of your spending every week. If you have overspent, make it up now. Do not let it blow out of control.
Save on cleaning products
Stop buying all those expensive pre-mixed cleaning products. Three quarters of it is just water. Most of them will just about kill you with the fumes, and we pay so much for all that packaging that ends up filling our bins. Not only that, they fill our cupboards and take up space we need for other things. You can clean the majority of your home with three products:
My next article will tell you how to use the above products. Now see how much more you can save. What you save on cleaning products can go towards the grocery shopping.
Bulk buying and specials
It is no good buying anything in bulk if you eat more because you have it. That is not saving or helping your budget. Buy things when on special. Use your discretion; never buy a dozen cans of baked beans if you are the only person to eat it. It is usually cheaper to buy fresh fruit and vegetables from the markets than the big supermarkets. Share a bulk by deal with your friends. Never buy more than you can store properly. When stocking your cupboards always put the newest to the back and keep an eye on the expiry date.
Grow your own vegetables
There is nothing better than going out into your garden and picking fresh salads that you have grown yourself. And, they are cheaper, which is helping your budget. Why not work with your neighbors, one grows the potatoes and cabbages, while someone else grows the cucumbers and tomatoes, or similar. Grow things that you can cook and freeze.
Save on gas and electricity
The cost of electricity is a lot more expensive than gas. Therefore, we use the gas stove and use the whistle kettle to make the coffee. Check the wattage on your electrical appliances. You may be surprised how high powered some of the appliances are. If so, get rid of them.
Turn off the microwave and all the things working at night when you are asleep. It only takes a second to turn them on again.
Most of us have had one or two credit cards maxed out from time to time. Pay them out as soon as possible. Always pay the one charging the most interest first, then the cheaper one. Find a suitable personal loan and budget to pay them both off. Now cut them up, do not replace them that is the only way to become debt free.
Save on cooking
We all spend too much time cooking and preparing meals. Next time you cook, make enough for two nights. Eat one and freeze one. If you do this, a couple of times a week it will not only save you time, but electricity as well. When baking a cake, make double quantities and cook two. Again, you save.
Now, take charge of your own life and finances, do not let the debts rule you, or ruin your life. You can save money with a little bit more organization and self-control.
Purchasing your dream home
Save, save, and save your money, and put the savings into an investment savings account. We all want the best, and yes, you can have it in the end. When you have saved your deposit, buy a small two-bedroom home in a less expensive area. Pay as much as you can afford off the loan every week. This will reduce the debt by thousands of dollars.
Improving your investment
Take photos of the whole house and yard. Take your time and make improvements; any improvement will increase the value of your home, which is putting money in your bank. If you have any spare money, start improving the outside appearance of your front yard. You can plant a few shrubs, flowers and keep the lawns cut.
Work your way through your home, would a coat of paint freshen the appearance. Save money by purchasing second hand furniture, table, chairs, and beds. Sand the cupboards down and stain or varnish them. They will look new again. Try to buy new bedding where possible. Search the op-shops for curtains in good condition. These will add to the overall look of the rooms.
When you are ready, you can sell and upgrade. By doing it this way you will slowly build your home investment, and never put yourself in a debt you cannot afford.
I hope this will show you how to make the dream of owning your own home come true
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