Budgeting is a struggle for most people of all ages, reason being people are stressed thinking about money hence not setting one. When one completes budgeting and realised more money spent than brought in, this will create a cycle of insufficient funds monthly.
Three approaches to balance a deficit budget.
First is to get in control of budget and create an ideal budget plan by reducing expenditures that are identified as a “want“and include only expenses that are a “need”. If many of your expenses are “want”, this is the easiest to cut spending without cutting too much out of your life. Decreasing the frequency of these items may be enough to balance your budget.
Secondly is to get a side hustle outside of a full-time job or working extra hours for your employer. Asking for a pay raise is another option. Considering the possibility of turning a hobby or skill into something you can sell for extra income is an alternative too, of course you must adhere to government guidelines.
Lastly is to reduce spending. One significant way is to become a savvy shopper. Be a smart shopper and wait for sale prices, shop second-hand. Another way is to re-evaluate basic expenses like television and phone bills. Check that subscribed channels or programs are fully utilised, if not remove them for a couple of months to save money. Phone bills often includes charges for things like voicemail, remove them if not needed. Besides these, you can barter for things you need. Rather than donating or throwing out items, you can use them to barter trade for items you need. A clothing swap is one good example, eg. Swapaholic Flea.
More often than not, most people tend to buy too much insurance too. You can check your insurance coverage if it is appropriate for your needs.When you have the basic coverage, any redundant insurance policies can be sold to us for additional cash to meet your budgeting needs. You may call 6221 4771 for a non-obligatory quote.