Managing your budget is the only way to stay clear of debt. Stick to these simple tips, and you’ll start understanding where you can save every month:

Be Realistic
Fixed costs are initially fairly inflexible, but if you decrease your variable expenses, in time, you’ll be able to invest more capital into your assets. Don’t try cut fixed expenses significantly; that’s unrealistic. Small savings make a big difference over time.

Distinguish Between Needs And Wants
Women tend to confuse these completely. Needs are those items necessary to sustain you. Wants are the things that enhance your life. If you can separate the two, it won’t be long before you can actually spend money on something you want, without feeling guilty.

Don’t Budget On A Bonus
People tend to live on credit (such as overdraft and cards) throughout the year, assuming they’ll receive a bonus that will clear that debt. But under current economic conditions, bonuses are a luxury – not a given.

Revisit Your Budget At The End Of Every Month
Complete your expenditure for the month too. Keep it simple or you won’t stick to it.

Make Adjustments To Your Expenses
You need to be conservative and decrease one expense at a time. For example: Pay off clothing accounts first and cut up the credit cards, next clear additional credit cards – you only need one! Lastly, ask your bank to decrease your available limits to avoid temptation.

Treat Savings As A Bill
Install a debit order on your account, as if your savings were an account.

Reassess The Interest Payable On Your Bond
Shop around for an interest rate lower than the one you currently have. There might be administration costs linked to this.

Insurance
Reassess your insurance costs with your advisor. Increasing security on your property should decrease costs. Old policies are probably more expensive than modern products. Never cancel insurance, but make sure you aren’t paying too much.

Keep An Organised Kitchen
Clean out your pantry and store perishable food in sealed bags. Finish food, such as cereals, biscuit and chips, before buying again. You’ll be amazed at how much wastage there is.

Shop With A List
Don’t wander down every aisle in the supermarket, only those that stock the goods on your list. It’s a fantastic way to save!

Shop At The Store That Is Cheapest Overall
Surveys show you can save 10 to 15% on your groceries monthly. If your bill is R2 500 a month, that’s R250 extra per month to pay off those debts!

Words: Dailyfix
Image: Website