If you need advice when it comes to budgeting and saving money, simply continue reading to discover a variety of tips on how to create a monthly budget which will allow you to save a greater portion of your monthly income.
How to save money and budget monthly:
1. Figure out how much your expenses cost you per month
Your first task should be to calculate how much your expenses will set you back each month. Expenses which you should factor in to your calculations include your mortgage payments or rent, transportation costs, credit card repayments, grocery shopping and utility bills.
Once you’ve figured out how much money you need to set aside each month to pay for your expenses, you’ll be able to figure out much money you can afford to transfer into your long-term savings account and how much money you can afford to spend on non-essential items such as fashion and entertainment.
2. Aim to save around a minimum of 20% of your monthly income
You should aim to save a minimum of 20% of your monthly income. If you find it difficult to save money for a rainy day or to pay for a house deposit or an overseas vacation, it’s well worth setting up a monthly automatic payment, so that as soon as your pay arrives in your everyday bank account, a predetermined portion of your pay will be automatically transferred to one of your long-term savings accounts.
3. Cut down on your expenses in order to save a greater portion of your monthly income
If you’re looking to save money, it’s well worth taking a good hard look at your monthly expenses to see whether they are areas in which you can decrease your spending. As an example, you may be able to cut your monthly grocery budget in half by switching out products from well-known brands for generic branded items.
Or you may be able to save money by shopping around for items at a cheaper grocery store or a grocery store which specializes in offering bulk items.
Alternatively, you may analyze your list of monthly expenses to find out that you spend far too much money each month on monthly subscriptions such as a gym membership or a cable TV subscription.
4. Stop purchasing items on your credit card
If you can’t afford to purchase a particular item, aim to save for it, instead of relying on using your credit cards to pay for expensive items. As that way, you won’t be stuck paying interest of credit card repayments in the future. Which will decrease your monthly expenses in the future.
5. Pay off any outstanding debts which you’ve incurred as soon as possible
Until you’ve paid off any outstanding debts, it’s well worth forgoing purchasing luxury items such as fancy dinners, movie tickets and fast fashion in favor of paying off your outstanding debts in full as soon as possible. As that way, you won’t have to pay for your debts in the future and will have more available income to transfer each month, to your long-term savings.
So if you’re interested in budgeting for your future, it’s well worth using the five tried and tested budgeting tips listed above.