July 2, 2020 Budgeting for Beginners: How to Budget Smarter

Cost saving options to get started.

As the cost of living increases, knowing how to correctly handle your finances can feel challenging. It’s important to understand that learning to budget correctly takes time and practice. Holding yourself accountable and determining your needs and wants are key first steps to making smarter financial decisions.

Knowing where you can effectively cut costs will benefit your overall budget and allow you to save or invest more for your future. Let’s look at a few cost-saving options to help you get started.

Find New Ways to Get to Work

If your commute is manageable, walking or cycling to work is an easy way to save money. Avoiding public transit when necessary can help save you money in the long-run and leave you with extra income, which you can then put into investing. If you own a car, choosing to drive only on weekends or for longer errands will save you money on gas, parking, and car maintenance. In addition to saving money, you’re contributing to a healthier daily lifestyle and making an eco-friendly choice.

Evaluate Your Short-term Options

If you find yourself in need of a short-term financial solution, alternative payday loans from providers such as GoDay are worth exploring. Convenient borrowing options can be made available if you don’t qualify for a traditional bank loan. This avenue can provide you with a faster, simpler way to navigate cash shortages, which everyone will encounter from time to time. The right lender will provide you with emergency short-term options as the need arises.

The right lender will often waive the red-tape that banks may provide with their traditional lending options. Customers only need to provide necessary financial information such as banking information and employment history. By taking into consideration the previous cost-saving methods mentioned, it will allow you to pay off these loans efficiently and with minimal interest.

Create and Execute a Meal Plan

To avoid continuous grocery bills, start meal-planning and bringing your lunch to work if you’re still working on-site. Committing to a single day of meal-prep and having more freezer-friendly meals will allow you to make more conscious decisions when it comes to how much you’re spending on food and eliminate any temptation to make more frequent trips to the store. There are a number of week-long recipes available that make the process easy and delicious. Additionally, selecting unbranded items at the store is an easy way to save a few extra dollars that you can decide at the end of the year how you’re going to spend or invest.

Shop Secondhand

Shopping at thrift or consignment stores is a creative cost-cutting solution. Oftentimes you’ll find items from name-brand retailers that would normally cost double or triple the price if purchased new. Additionally, these stores are often available online. If you’re looking to update your home or your wardrobe, shopping secondhand can help ensure you’re able to enjoy your money while making the smartest decisions for your finances.

Pay with Cash Only

Having the temptation of a credit or debit card around can lead to unnecessary spending. By creating a strict cash budget, you limit your spending to only what you have on-hand. Allow yourself a weekly budget and commit to spending only that amount. You’ll limit your impulse spending and over time you’ll see how much you’re saving by not relying on your credit or debit cards.

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