Sunday, June 2, 2013

How to adjust smaller household budget

The budgeting is an important skill for our life. We should be clever to manage the budget. We must sure the budget balance. What we stream should not different with what we spend. It will be better when you have higher income.
If you have still high spending, you need to adjust it. There are some action to adjust to a smaller household budget:

1. Track your expenses

Write down all the expenses include the small amount of expenses in a month. Categorize the expenses to some category. It will help you to recognize the kind of expenses. You can separate the necessary need with unnecessary needs. When your income so small, you are better to leave the unnecessary needs. For example, you need to eat but you do no have to eat at restaurant. Eating out can increase your spending around hundreds or thousand dollar in a month. It will better to cook the food that is more health and cheaper.
People often buy an item hat they do not need it. A mom often buys too much cabinet to keep the newspaper or other things. Supposedly, she does not have to buy cabinet but she can keep the old newspaper in warehouse or she can sell the newspaper.
Sometimes a mom also spend does no realize that she has spent dozen r hundreds dollar. Sometimes a mom buys soft drink everyday. The price a can of soft drink is a dollar. In 30 days, she spends a last $30. Supposedly, he mom reduce the sift drink because it is expensive and It is bad for your health. The soft drink can lift our body weight.
Consider the annually spending such as insurance and taxes.  Divide the amount of annually tax or insurance to the number of month in a year. Allocate the ax or insurance spending in a years.

2. Reduce your food cost

No matter the economic condition. No matter who you are, you should still eat food. We should earmark money for the food spending. However we can trim down the spending. Do not eating out to save hundreds dollars a month  If you cannot avoid eating out, you can reduce it first. You are better to cook  your food alone and you can cook any food that you like. Some people suggest buying in bulk because we will get rebates. We can buy in bulk such as meat, chicken, bread, tissue paper, towel, and so on. Notice that the meat is easy to damage so you must consider he expired date.
Find the supermarket or grocery that sell the food cheaper. You can make bit research to find it. Buy the items that you need it. Do not buy any grocery items that you do need. Sometimes the discount often tempts us to buy more.

3. Reduce the utility bill of your household
Be sure the faucet closed down when someone do not use the water. To spray the grass or garden, you can use the used water. You can save your bath to spray the water. You can also it to wipe the window by using water. Harvest the rain with the drum. You can use it at the dry season.
Plug on the electric or gadget if you do not use it. Do not forget to plug of the charger when the battery is full. We need to reduce the electric bill in order to reduce our spending. Use save energy wash machine. Most wash machine suck high electric bill. Always turn off the light when you do not use it.
Be sure what you spend is what you need. Do not waste your money though you have so much money. You will need money when you have no job. We do not know whether we need the money someday. Sometimes, we should expenses so much money for health.

Read also:
The envelope budgeting
Four FInancial Goal Mistakes
The budget for worker who has no field income 

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