It is often the smaller financial decisions you make that can have the largest impact on your overall budget. If you are trying to save money or you just want to have enough to make it to the end of the month then read these five small budgeting habits that can make a big impact on your bank balance.
Research Before You Buy
This will help you to reduce your impulse spending and decide whether the items you want to purchase are worth the money you are going to be spending. You can save with Upgraded Reviews and make more informed spending decisions so that at least you know you will get lots of use out of your purchase before you buy it.
Calculate Your Usage Rate
Think about how many times you are likely to use an item before you part with any money and then you can determine your usage rate. For example, you might think that a new coat that costs $20 is a much better bargain than one that costs $100. However, if you don’t like the $20 coat, it doesn’t fit properly or it isn’t very good quality, you might only wear it once and then go out and buy another one. This means that the cost per wear is $20. However, if you splash out on the coat for $100, you might love it and wear it 200 times, meaning that your cost per wear is 50 cents. This represents much better value for money than the one you thought was a bargain.
Use a Shopping List
If you write yourself a list of the things you need and stick to it then you are less likely to overspend. Shops have many tricks they like to use to relieve you of your money and you are more susceptible if you haven’t brought a list with you. You are also more likely to forget items and have to return to the store if you don’t have a list and you may be tempted to impulse buy for a second time.
Save Unexpected Money
If you get a huge windfall, you are likely to take advice and save at least some of it. However, if you receive a small windfall, you are unlikely to do this and you will soon find something else to spend your money on. Saving these small windfalls can add up in your account and you are much more likely to receive these than a big windfall. For example, you have your eye on an item you want to buy and the money to buy it but when you go to make the purchase you find that it is in the sale and will cost you 20% less. You may not think too much about this at the time but making a point of saving that money can have a big impact in the longer term.
Check Your Accounts
Checking your account regularly will help you to keep track of what you are spending and stay on budget. Paying for small treats soon adds up but if you remember that you only bought yourself a treat a couple of days before, it can really help to curb your impulse buying.
Checking your account can also help you to stay on top of your bills and makes it easier to spot any incorrect or fraudulent use of your account.
These budgeting tips may sound small but if you start using them today, they could make a huge impact on your finances over time and give you more money to budget with.