According to a survey conducted by the price comparison service uSwitch, a number of UK households consistently spend more than they earn in monthly income. This has led to situations where people are running up high credit card balances, and making ample use of overdraft cover on their bank accounts. If you are among those who find yourself unable to keep your spending within your means, here are a few tips to help you make the necessary changes and move closer to being financially stable.
First, look closely at your variable expenses. These are any expenses where you have some control over the amount from one month to the next. Gas and electricity as well as other utilities, food, and similar expenses all fall into this category. There is a good chance you can lower these monthly costs and thus begin to live within your means.
To lower food costs, plan menus and buy accordingly. Limit or eliminate meals out for a time, since eating at home is often cheaper as well as more nutritious. Go to the supermarket no more than once a week. If you run out of something, learn to make do until the next scheduled shopping trip. You’ll be surprised how quickly you find that you can adjust and cope with relatively little inconvenience.
With utilities, look at the way you use them. Can you set the thermostat so the home is a little warmer in summer and cooler in winter? Even a small adjustment can make a significant difference in your heating and cooling costs.
Never impulse buy, in stores or online. Stop and ask yourself if the item will provide the same level of satisfaction three days from now. If not, you don’t really need it.
Make better use of what you have. Instead of buying a new outfit each month, learn to mix and match the clothing you already own and create a new look. Consider creating an exchange club with neighbours or friends, and exchange items like books, DVDs or other items that you no longer want for items that you do. Once a week, declare one day where you will not spend any money at all, and stick to it.
All these strategies can help you reduce unnecessary spending and thus allow you to live within your means once more. As you gain discipline, you may even find there are funds left over to begin retiring credit card balances, make an extra payment on the car loan, or even put a little money away in savings. In any case, you’ll feel better about yourself, and your financial situation.
Tags: car loan, credit card, gas & Electricity
