Living on a Tight Budget by Creating and Using Money Wisely

By Charles L Harmon

Even when the world is amazing and you’re leading a comfortable life, it is still wise to create money and use it intelligently. Many people wince when they listen to the word ‘create’, as they consider this means that you can’t have any kind of fun or waste any cash. That is far from true. Living on a tight budget also leaves space for fun if you strictly adhere to the budget.

Since you want to create and use money, you must set realistic goals on what you will pay and where you will save. You have to be firm if you want to live on a tight budget yet still enjoy life. Don’t say that you spend $10 per lunch knowing full well that you really spend $40. This means that you have actually created $40 and you are spending it on your lunch. No, this won’t do; you have created $40, spend $10 and thereby, save $30.

You might get shocked when you realize actually how much you are creating money and how much you are using it. Every day, you spend small amounts on so many things like milk, bottled water, tea, coffee, and the likes that finally add up to a big amount at the end of the month.

If you truly want to save money and enjoy living on a tight budget why don’t you try to keep track of how much you spend on weekly basis? That way you’ll find out how much you are creating money in a week and how much you are using money in a week? Keep track of every dollar you spend – do not miss out on or hide any expenditure. Also keep track of how much you take out of your bank account every week. At the end of a month or two, the picture will be clear – how much you have created and how much you have spent.

After you alleviate the initial shock of how much you have spent, or to put it in a better way, how much you have wasted, it is now time for you to look for ways to spend less or spend only when it is required. Tight budget living can be fun so don’t despair.

Creating and using money wisely can be a challenge, but the rewards can be great. By living on a tight budget there will be less stress, you can easily save for a rainy day, provide money for any unforeseen emergencies, and know you are not wasting money unnecessarily.

How can you actually spend less because you think that you are not wasting money but spending money on what is required? Then let me ask you, is having a coffee outside daily really necessary? Is having a pizza daily necessary because you feel too lazy to cook food? Anyway, try going by the following that will reduce your money expenditure.

Tips to Reduce Your Money Expenditure

Adjust the thermostat by a few degrees to save money on energy and gas.
Forget eating out or dining out. Go for it when it is absolutely necessary.
Go for an economical cable TV, the Internet, or a mobile plan.
Get rid of unwanted items in the house and make some quick money.
Don’t buy unnecessary things for your house and clutter the rooms. Buy something when you actually need it. For example, you were left with two teacups that broke. You go out and buy a dozen teacups. No, don’t do this; you can buy four and not more. Of course, the cup count depends on the number of family members but don’t buy a dozen just for the sake of it or because you are getting a little break on the price if you buy more.
Use local transportation and carpool; use your car only when it is urgent or in an emergency. Try selling the other cars you have unless you really need them. If they are in poor shape or not running then consider giving them to charity – you just might get a tax deduction if you do. Imagine how much money you waste in maintaining them.
Try to buy grocery items when they are put up on sale.

Of course, there are hundreds of other ways to be able to save. What is compatible with one family may not be compatible with another family. But in all likelihood, you don’t need new gadgets, the latest vehicle, or brand-name foods every day, every week, or every month.

Although you may be living on a tight budget that’s no reason to give up everything. Just do a good job of keeping track of the money you spend that is unnecessary. That’s a great first step to having more money – assuming you can break that wasteful habit of unnecessary spending.

Try to create money more and spend only on necessities. That money you save can be used to create a rainy day fund or provide money for any emergency that may come up. Start saving today as the saying goes ‘better late than never’.

About the Author

Charles is studying about Ayurveda and travel.