Whether you are looking to start saving, or you’re trying to improve your financial situation, creating a frugal budget can really help. Sometimes you don’t even realize where you could be making savings. By having a budget on hand, you’ll see exactly how much you can spend and where your money is going.
If you’re new to budgeting, you may be wondering where to start. Here, you’ll discover some great tips for creating a frugal budget you can stick to.
Work out your overall budget
Start by working out your overall budget. How much do you have coming in and how much leaves your account each month? Working out your incomings and outgoings gives you a clear picture of the current state of your finances. From here, you can start to make proactive changes that will hopefully be able to help you to save more money than you currently do.
Utility bills
For most of us, our monthly utility bills leave our account without us even sparing a second thought. However, there’s big savings to be made when it comes to these bills. Make sure you’re checking every month how much you’re being charged. Cross reference this with your meter to double check you’re not being over-charged. Similarly, a smart meter allows you to easily see what you’re spending in real-time. Also, it’s incredibly important to shop around. It’s been in the news more and more recently and for good reason. A lot of utility companies offer great new customer deals that could save you money long-term.
Create a food budget
Once you have your final overall budget, it’s time to look at ways to live a little more cheaply. Creating a food budget is a fantastic idea. According to Love Food, Hate Waste, approximately £480 worth of food is thrown away by the average household each year. That’s a lot of wasted money, not to mention the impact it’s having on the environment.
Creating a food budget and putting together meal plans, can help you to spend less and waste less. You’ll also find you stick to a healthier diet too when you’re trying to live more frugally, as you’ll be cooking more from scratch. So, you’ll get healthier as well as spend less.
Overall, creating a frugal budget isn’t difficult. The above tips will help you to get started on living a more financially responsible lifestyle. Focusing on paying your debts off will have the biggest positive impact on your finances, helping you to create a much more financially stable future, freeing up a lot more money each month.