Living on a tight budget isn’t easy. It is often very difficult to make ends meet when your job doesn’t pay much, but with the right approach, it can be done. In this article, we are going to offer some expert tips for making every penny count.
Create a Sensible Budget
A budget is an analysis of your income and expenditure, so you know exactly how much spare cash you have at the end of the month.
Go through your bank statements. Mark down all your expenses and itemise them according to essential bills such as utilities and rent, non-essentials like a gym membership, and occasional expenses, such as a car repair. Note down your income and any savings you have.
This gives you a useful picture of your current financial situation.
Cut Your Cost of Living
Try and cut costs where possible. Cancel direct debits to organisations you don’t use and stop splurging on things you don’t need. Make a packed lunch instead of buying a sandwich from Subway. All these small and seemingly inconsequential expenses all add up!
Look for Ways to Earn More Money
Once you have cut your outgoings down to the bone, it’s time to look at ways to earn extra. The most obvious one is to ask your boss for a pay rise or look for a better-paid job. If neither of these options is possible, consider the benefits of taking on a part-time job on the side, or flexing your entrepreneurial talents.
These days, it is very easy to earn money in the gig economy. You could sell arts and crafts on Etsy or pick up freelance jobs on sites like Upwork. You could even rent out a spare room in your house!
Have an Emergency Fund
Living on a tight budget usually means savings are minimal or non-existent. This is a seriously bad situation, as you have no cushion to help you when something bad happens, like your car breaking down.
Ideally, try and put aside as much as you can afford each month. Ring fence this money in a savings account. Set up a standing order so the money leaves your account on payday; that way, you won’t miss it.
If you are hit with an unexpected bill and you can’t afford to pay it, ask family for help. If they can’t or won’t help, look for a short-term lender who offers quick loans for emergencies. With a lender like Cash Lady, you have access to loans up to £2,000 and funds are usually available on the same day.
Don’t let your lack of cash get you down. Just because life is tough right now, it doesn’t mean you are doomed to be skint for the rest of your life. Just keep working on your entrepreneurial ideas and you never know, you might be the Next Big Thing in the tech world or come up with a winning idea for an e-commerce store. Stranger things have happened!