How to ensure a great lifestyle on a tight budget

You can always ensure a great lifestyle on a tight budget if you really want to because such a thing is only a matter of perception. What to you is bare minimum can be a luxury to me. Therefore changing your mindset is the first condition of a happy lifestyle. However, today we have got used to certain level of creature comfort and try as we may we will never be able to live without that. Therefore, if you ask me how to ensure a great lifestyle on a tight budget, I will first ask you what a great lifestyle implies for you.

Overall, to most of us such a lifestyle will mean having something more than our basic necessities. It also means that we should be able to do whatever we want, provided that remains within a reasonable limit. Such a lifestyle is indeed possible provided you learn to live by a proper budget. Remember, learning to budget your expenses according to your income is not enough; you must also have the determination to stick to it. If you cannot do that, everything else will become a futile exercise.

Therefore, before trying to find out how you can ensure a great lifestyle on a tight budget, ask yourself if you are willing to stick to such a budget. Proceed only if the answer is a firm yes. The next step is to sit down with your family members to ensure that they too are ready to comply. Next, have a look at your total income as well as your expenditure. In fact, knowing your expenses is the first step towards any budget making.

Know your expenses; only then, it will be possible for you to curtail unnecessary expenses and save money for some other purposes. The best way is to note down all your expenses for two or three months. At the end of that period, sit down with it to find out how much you have spent on each item. Talk to your family to find out if you can curtail the outlay on some of them. Remember, you need your family’s cooperation on every step if you want to ensure a great lifestyle on a tight budget.

Therefore, take your family along as you travel towards a greater lifestyle. Sit down with them to decide which expenditure you can cut. First, let us have a list on the items that cannot be compromised under any condition:
•    Basic health and nutrition of your family
•    Education of your children
•    The environment in which your kids are growing up
•    Contribution to investment funds, pension funds, life insurance etc

Therefore, we see that, whatever, the cost, you must provide nutritious diet to your family. However, if you try, you can do that for much less. Buy fresh vegetable and meat and cook at home. Packed and cooked food or food material cost more not because they are healthier but because processing of food material, adding preservatives as well as vitamins and mineral, packaging etc cost a lot.

Buy in bulk from discount stores or farmers’ market. That will lower the prices even further. Moreover, that way, you will have fewer trips to make and hence fewer impulsive purchases will be made. Truly, to cut cost, you must make a list at home and shop accordingly. Do not let your eyes wonder; if you do, you may be tempted to make unnecessary purchases and that may make your budget go topsy-turvy. In addition, making fewer trips means you save on gas and with the gas prices rising high, one should be cautious about that too. You should use the public transport more to save money on fuel, but that is another matter.

Along with buying in bulk, cooking in bulk also can help you to save. However, it is important that you should know how to preserve the cooked food properly so that its nutritional value is not compromised. Also, make a habit of putting off the switches before leaving the room. In fact, the utility bills and other sundry expenses take up a large part of our monthly budget. Look at each item individually to see if they can be lowered. As for life insurance, if you shift to term life, instead of any cash back policy, you will save a lot of money without actually compromising on your family’s security. Indeed, ensuring a great lifestyle on a tight budget is easy if you put your mind to it.