Living a good life on a budget

By Lena / May 12, 2012

Living A Good Life On A Budget

It is true that nearly every aspect of our lives is touched by money. You earn a limited amount in your salary, and often, you may feel like what you earn cannot possibly cover all of your necessities. However, there are ways to live comfortably on a tight budget. Read this article to find out how.

Before you do anything else, you should make a budget. Write down how much you make, and what you have to pay for every month. Then, go through each expense item, and decide how much of your income should go to each area. Your living and food expenses should get first consideration. Then you can divide the rest of your income among the other expenses. Do not forget to include a section for savings. This will give you a good idea on how well you are living within your budget.

Things that you need to buy can be expensive at retailers. However, you can always find less expensive alternatives. For instance, good quality furniture is available from consignment stores at deep discount. Craigslist is a good source to browse through if you need to buy toys, furniture, clothing and just about anything you can think of. Get into the habit of cutting coupons for grocery items. Warehouse clubs usually have great prices on products that you can buy in bulk. These are just several ways for you to purchase what you need at an inexpensive price.

It is very important to save money regularly, even if you can only save a little bit every week. You can open certain investment accounts with as little as $50. This is one way to make your money work for you. Because of the magic of compounding, your small, regular investment can grow into a significant amount of money over time.

It is important that you pay down any debt that you owe as quickly as you can. Credit card debts carry especially high interest. The longer you carry this debt, the bigger the balance becomes. This high interest cost can really make a big dent in your monthly budget. So, make it a priority to pay off your debt. When you are debt-free, commit to living within your means and not borrow money to buy anything expensive. You will see what a wonderfully satisfying feeling being debt-free can be.

It is important find ways to give to a charity. There are those who do not even have a home to live in, and who cannot get three meals a day. Even though you are on a tight budget yourself, when you give to a charity, no matter how little, it will make you feel a lot richer.

Living on a budget does not mean that you have to lower your quality of life. The main thing is to be in control of your money instead of letting it control you. You can live comfortably and without debt if you plan well for it. Just remember to always live within your means, and you will live the good life.

About the author

Lena

Leave a comment: