Creating a budget sometimes feels overwhelming. It may seem difficult to allot enough money for savings, investments, debt, and bills. Jason Hartman believes that with the right budget cuts, paying off debt and making smart investments after college can become substantially easier.
1. Call Your Service Providers
It’s possible to save quite a bit of money by taking a careful look at how much you’re paying service providers. With insurance, for instance, it’s important to shop around to see if better rates are available with a different insurance company. Before switching providers, call in and see if you qualify for any discounts. The same can be done for most other service providers as well. Services you can save money on may include:
Cell Phone/Telephone Services
Bank Account Fees
Credit Card Rewards and Interest
2. Eat in More
If you eat out every day, or even every other day, you may be racking up more expenses than you realize. More often than not, the amount of money spent at a restaurant can also buy several meals for the week. Try to plan meals at home to use up any ingredients you buy to their fullest. Also, consider avoiding coffee shops for your daily coffee. Making coffee at home with a coffee or espresso machine can save several dollars a day.
3. Set Spending Limits
Part of budgeting is setting limits on any extracurricular spending. Pull out a set amount for extra spending each pay check and set it aside. This is the only money you should use for non-essential items and activities. Remember not to spend any extra money, and not to budget more than you can afford for extra expenses.
4. Become Energy Efficient
Finding energy efficient solutions to save on the electricity bill can put sufficiently more money in your pocket. Making energy efficient choices like purchasing energy efficient light bulbs and limiting the use of air conditioning, for instance, will reduce the electricity bill.
5. Only Buy Necessities
If you don’t have sufficient spending money to purchase luxuries, make cuts in that part of your budget. Only spend money on necessities instead. When it’s time to go shopping, visit thrift stores and garage sales to look for deals. Keep an eye out for sales and clearance items, you’ll be surprised what you find. Check around for helpful coupons as well.
With these money saving methods you should have more money in your pocket to pay off debt and build up savings. For more information about budgeting after college, try reading Budgeting After College: What You Should Know. (Top Image: Flickr | Tax Credits)
The Young Wealth Team