Preparing a budget is important if you want to maintain a standard way of living. This also means that you will have sufficient cash to fulfill your daily necessities. If you want to increase your savings, you must draft a frugal budget that will help you spend less and thus, save more money. Make sure you realize the importance of your hard-earned dollars and enjoy a thrifty life. Being frugal means you may have to give up some of your luxuries and thus, lead a normal lifestyle.
7 Essential steps you should follow to draft a frugal budget
Check out the 7 essential steps you should follow to draft a frugal budget.
- See your income statements – You will have to see your income statements properly in order to find out how much money you have for every week. This will enable you to get a better idea how you can make your frugal budget.
- Work out present household expenses – You will have to work out present household expenses so as to determine the monthly costs. Make sure you include your mortgage payments, house rent, utility bills, food costs, minimum debt payments and also the other necessary expenses in it.
- Reduce food cost to live within your budget – Living in a frugal budget means you need to reduce food cost. Take the most advantage of the coupons to buy the grocery items. This way, you will be able to save good amount of money. Buy only those items that you’ll need. If possible, shop alone in order to avoid spending money in extra things.
- Get rid of the monthly expenses – It is advisable that you avoid spending money beyond your budget and practice thriftiness by eradicating unnecessary monthly expenses. For example, you can cancel your home telephone service since you already have a cell phone. Reduce your cable service by watching few channels.
- Assess your recreation budget – Spending too much money on amusement or eating out can lead you to a wrong track. Learn to live within your budget by spending less on dining out or going to movies. Instead of eating outside for three to four times in a week, you may eat outside once in a week. This will help you live in a frugal budget.
- Save money on the transport costs – You may be having your own vehicle. Still, it is good to take advantage of the public transport. This will help you save the fuel costs. You only have to pay the fare when you go on a public transport. A lot of your money will be saved in this way.
- Buy clothes at an affordable price – You should not buy too expensive clothes when you can get good quality clothes at a reasonable rate. Purchasing too costly clothes means wasting your hard-earned dollars unnecessarily. This is another important step towards a frugal budget.
These are the essential steps that you need to follow in order to draft a frugal budget.
A contribution by Janice Thompson.