Living on a Limited Budget

Living on a Limited Budget

p>Few people have the means to live in luxury but that doesn’t stop them from trying. For those of modest financial circumstances, there are ways to cut the amount of money you spend. Here are some suggestions for living comfortably on a limited budget.

Know Your Priorities

Even if your budget is not of the paycheck-to-paycheck  variety, it wouldn’t hurt to take a look at your priorities and figure out if money is going in the right places. Do this by finding what’s vital to you in terms of comfort. Balance your budget accordingly without sacrificing critical spending areas like savings, bills, and food. Potentially save money by reducing the amount of money spent on items less necessary for your comfort. It’s all about balance.

Take Advantage of Budgeting Tools

There are quite a few people who don’t apply any sort of strategy with their personal finances, and as Jason Hartman says,

this is a mistake. Individuals can

run into financial pitfalls without a plan, which is why it’s critical to create a budget. Though budgeting may seem like a daunting prospect, budgeting tools can make a world of a difference. There are a number of tools online which can get you started immediately.

Creating a Reasonable Food Budget

Food can rise in cost fast, especially if you’re one of the millions of people who eat out every day. For this reason, it’s important to figure out how to reduce food expenses and cut the food budget. Start by thinking critically about the food budget. First, consider how often you eat out, because for most people, eating out is the largest money drain. If you’re a person who hates cooking, it may be a good idea to brush up on fast and easy recipes. Buy bulk ingredients which are on sale to save on money in the long run.

Live Within or Below Your Means

If you’re paying for a car and/or a place to live which claims the majority of the budget, you’re living above your means. To live comfortably on a limited budget, it’s often a good idea to live below your means. Living below your means allows you to raise enough money to make a good income property investment. Consider downgrading to a car with lower payments, or bringing a roommate into the home

to help manage the rent or mortgage payments.

With a little budgeting knowledge, it’s possible to make good investments and live comfortably without excessive spending. Be sure to budget weekly or monthly to keep on top of personal finances and keep spending within reason. (Top Image: Flickr | RambergMediaImages)

The Young Wealth Team