We all love to live our lives when the salary gets credited in the beginning of each month. Unfortunately, those who don’t follow a monthly budget, suffer credit crunch during month end. If you are too not that economical and don’t follow any budget, you ought to struggle with your finances at the end of each month. You’ll find your cash reserves exhausted and suffer to meet your and your family’s needs. Things can take much worse shape if you don’t even have an emergency fund and your credit cards limits are already depleted.
If you find yourself under such edgy situations every month, here are 5 ways to plan your finances more effectively towards month ends.
- Create a realistic spending plan: Everybody hates budgeting (including me). But if you want to sustain, you have to assume an optimal spending plan during month ends. Budgeting is nothing other than spending on your real necessities and cutting back on unnecessary expenditures.
The key is chalking down a realistic spending plan and making sure you are covering every category.
- Use alternate transportation: A huge amount of our monthly incomes goes toward our cars - specifically, in order to purchase gas. Check for alternate mode of transportation if you are traveling within the city, traveling alone, and while commuting to office from home and, vice versa. Public transportation is much more cheaper than driving and can help you save some good amount. Biking can be a great and inexpensive alternative. For instance, here is Sacramento, CA, you can buy a bike to commute to office for as little as $200. You can even avail better prices if purchased through Craigslist or Ebay.
- Prepare your food at home: Buy groceries on your own and prepare your own food at home. This can be another way to stay frugal during month ends. Buy in bulk whenever possible, and take advantage of discounted items and coupons. Avoid dining out or grabbing fast food for your meals. Fast foods are cheap but in the long run, cost much more than foods made at home. Try to prepare both your breakfast and lunch at home and carry to your office. Enter your zip code at GroceryGuide.com to find weekly special and coupons at supermarkets near you. See more at - Grocery planning hacks can help you live a better financial life.
- Cut back on unhealthy and expensive habits: In addition to cutting out items that are not part of your basic diet, get rid of expensive and leisure habits. Apart from the genuine health risks posed, smoking is undoubtedly an expensive habit. A regular pack of cigarettes costs you around $10-$12. Alcohol is another stuff in the list that cost you dearly and moreover, take a toll on your health too. Even if you don’t smoke or drink, there might be other unnecessary recreational stuffs. Try to cut back on those as you wait for your next month’s salary.
- Get less entertainment: Rather than visiting multiplexes or theatres, check for free or inexpensive entertainment in your community. Go through local newspapers or websites to get informed about free or low-cost parks, film showings, museums, sport events, and other places where you’d enjoy along with your family.
Do you find yourself in unfriendly financial situation during month ends? How do you make up for the remaining days?