Living Well On a Small Budget

We all want to lead the best life that we possibly can.

This is only logical. We want to be happy, healthy and to enjoy ourselves to the best of our ability. Now, there are countless factors that can impact this. But a huge one that can greatly determine our quality of life is the money that we have available to us. Now, it’s a fact of life that everyone has different amounts of money, but what can you do if you don’t have much but still want to live the best life you can within your means? The good news is that there are steps you can take to maximise the amount of disposable income you have to afford more comfort, entertainment, security or whatever else it may be that you want from life. Here are a few suggestions that can help you to live more comfortably on a tight budget.

Know What Your Budget Is

First and foremost, it’s absolutely essential that you know what your budget is. All too many people simply know that money is tight because they are always scraping the bottom of their bank account and struggling to get by. But if you know exactly how much money you have available to you each month, you can better distribute it over the weeks, helping you to experience fewer low times. If you haven’t created a budget before, don’t worry. It’s a pretty straightforward process but really will make all the difference. Start out by determining what your monthly pay is. If you’re employed, this will be how much hits your bank account after payday. If you’re self-employed, you may need to do a little more work to determine how much money you actually keep out of the money that hits your bank account, as you will need to make deductions for tax and things like national insurance and put this aside for your tax return. Once you know your monthly take home pay, it’s time to deduct essentials. These are things that you don’t really have any choice in spending. Things like your rent, council tax, water bill, energy bill and contracts that you have signed into (this could include services, credit cards or loans). The amount that is left over is your disposable income. This is the money that you can enjoy yourself with. Once you know your disposable income, plan how to spend it and make sure that you don’t exceed it. This will prevent you from falling into debt, which can be extremely difficult to get out of if you’re working to a tight budget.

Reduce Your Bills

You can reduce some of your essential outgoings fairly easily. Sure, you may have to pay for these things to have a good quality of life, but often, all you need to do is visit a price comparison site and you’ll be able to find a better provider or policy for a lower price. You can switch electric providers, gas providers, insurance providers and so much more. If you’re reluctant to leave the provider you’re already using, because they have great service or because you’re a particularly loyal customer for some reason, you can always ask them to price match a better deal you’ve found.

Shop Savvy for Essential Purchases

Of course, bills aren’t the only thing that you might find yourself having no choice but to buy. You may encounter other essential purchases that you really need, for example, over the counter medicines, Breathing Apparatus or other medical products recommended by your doctor, repairs to things you use regularly (such as appliances or your car) and so much more. Unexpected costs can come from anywhere. It’s important that when you’re faced with having to buy something, you shop around. There’s competition in the marketplace that means businesses are competing to offer the lowest price. You should shop long and hard until you find the best option with the lowest price tag.

Reduce Your Food Shopping Costs

We all need food to survive and you need to make sure you’re hitting your recommended daily calories with healthy, balanced meals and snacks. This isn’t something you can just cut out as a cost. But you can reduce your food costs. Many of us are in the habit of shopping with particular supermarkets or brands. Instead, look at more budget or unbranded options. They can taste just as great for a lower cost!

These are just a few steps that can help you on your journey to living well on a small budget. Hopefully, they work for you and will help to maximise the amount of disposable income you have!