Tips for Budgeting when Income Doesn’t Meet Expenses

It sometimes becomes difficult to manage our income and expenses and soon we get hit by the fact that we are spending more than we are actually earning. This means we enter a stage of budget deficit and the best way to overcome this in the short term is to prepare a proper budget and follow it. The first thing to do is to decrease expenses as it easier then increasing income.

The following are some tips on how to budget expenses:

1) Food and drinks – cook food at home instead of buying from restaurants, this means to have breakfast and dinner at home, and to take lunch from home if going to school or work. Cut down on drinks such as coffee and soft drinks, instead, drink water which will save money and is good for health. Instead of buying snacks such a bag of chips, just have an apple, again, this will save money and is good for health.

2) Clothes and shoes – only buy new clothes and shoes if you absolutely need them and don’t be particular about brands, and better yet, stay away from shops that sell them. Set a limit, say spend only $100.00 per month on clothes and shoes.

3) Grocery – go shopping once a week only. Only buy things you need for basic survival such as food items. Don’t spend money on things like toys, movies and luxury goods and luxury food items such as expensive chocolates.

4) Utilities – if you are not using something which works on electricity, switch that item off. Usually I have noticed that people leave their TV’s switched on while they read newspapers or magazines, don’t do this. Instead of using vacuum cleaners at home, use a good broom. Try not to use microwaves and heaters often. Ask the kids to go outside and play instead of staying indoors and watching TV or playing video games. To save on water, cut down on the number of minutes you shower, instead of 20 minutes per bath, make it 10 minutes. Also, when washing your car, use a bucket of soap and water, rinse your car with it first, then use the hose to give an overall rinse. Don’t leave the water running while you are cleaning the car with soap and water.

5) Traveling – if you have a car, don’t go for unecessary rides. Only use your car for traveling to work or school or for necessary socializing purposes. If possible, take a walk to stores, it is good for health.

The above are just some ways in which you can budget your expenses in order not to spend more than you earn.