Budgeting and frugality actually go hand in hand. Budgeting helps you to lower your expenditures and helps you in saving money. Similarly, frugality requires lowering your expenditures and thus helps you to save money. So, if you prepare a frugal budget, you’ll be able to save your hard earned money and secure financial future. It will also helps to stay away from financial obligations. Moreover, it is really interesting to learn the unbelievable ways in which you can save money when you develop and practice frugal habits everyday.
7 Steps to create a monthly budget worksheet
If you want to prepare a frugal budget, you’ll have to do certain things. You need to make up your mind about lowering your expenses and save money as much as you can through lowered expenditures.
Things required:
- All copy of your monthly bills
- Calculator
- Paper and pen
Timing: 2-3 hours
Step #1 Maintain a budget form to asses monthly expenses
Create a list of all your monthly payments (entertainment, households, debt payments etc.) in a budget form (previously created) and asses your monthly expenses.
Step #2 Calculate your monthly income
Now you need to calculate your total monthly income. This includes salary, any income from investments, rent, business.
Step #3 Exclude your total expenses from total earnings
Now use the calculator and deduct the total expenses from your monthly income to know how much money you can expect to save.
Step #4 Take a second look if you find negative results
Dont panic if the number shows negative results. If you find your monthly expenses are more than your monthly income then revisit your monthly expenses list. Try to find out the things you can eliminate in order to trim the expenses. You need to be rigid while go back over monthly expenses. Thus you can create a monthly budget that actually help you to save money for future. So, cut down the unnecessary expenses to get positive result.
Step #5 Cut down more expenses if you’ve debts
Incase you have debts then you need to make more sacrifices. recheck your monthly expenses again and be aggressive to cut down expenses. Though its quite tough. But, once you determine to take control over your expenses to pay off debts without professional's help. You should sacrifice for a certain period of time.
Step #6 Be wise while building your savings
If you’re lucky enough to save money after monthly expenses or debts payments, then you can use that extra money to reach your financial goal. There are many other requirement as well. You need to think about retirement savings, emergency fund, vacation plan, child education, mortgage. So, be very practical while dealing with your budget. Try to find out your priority first then take baby steps to reach your financial goals one by one.
Step #7 Budgeting is a constant process
Don’t just sit relaxed as you’ve fixed your monthly budget. You need to look over the monthly expenses every month. Thus you can track areas of overspending. Many other expenditure can added so take a look on your monthly expenses and adjust according to your need. But you shouldn’t cross your monthly budget.
6 Ways to maintain a budget friendly frugal life
Frugality is the gateway to financial freedom. Here are the 6 ways to maintain a budget-friendly and a blissful frugal life.
1. Relocation
You can think of relocating (mostly in case of rents). Some localities cost you more than others. So, if you think you want to save money, you'll have to do some research for a place that is good to live in and will cost you less.
2. Lower usage of plastics
Another thing that can help you to maintain frugal life is lowering the usage of your credit cards. Credit cards are revolving credit and thus have high interest rates in general. So, it is always better to keep the credit cards for the emergency purposes. Try to use the cash that you’ve in your hands to buy the items needed for your everyday purposes and so .
3. Give up on your impulses
You will also have to give up on your impulses, if you want to go frugal. Because, impulse buys are simply unnecessary expenditures and cost you lots of debts.
4. Use discount coupons
You can use discount offers and coupons for saving money on your buys. This helps you save lots as you're able to buy the items that you most need with much less money.
5. Use up leftovers
Don’t waste your excess food. Try to keep them in an airtight container and reuse for further meal. There are many leftovers recipes available. Search online to get best recipes. Plan meal according to your hunger. Unnecessary waste of foods can increase your monthly expenses.
6. Take advantage of your front yard
If you have enough space in front of your house then take advantage of it. How? Plant some useful veggies (tomatoes, cabbage, eggplants, beans) in your yard to trim your grocery cost. Thus, you can save your time as well. Moreover it will give you positive energy.
Bottom lines
Don’t forget to modify your budget. In each modification you can get ways to cut down the extra costs and that can help you to save money. This will feel you rewarded every time and inspire you to maintain it for long time to get best result. But it’s advisable to create a realistic budget unless it can make you demotivated. Do keep some money to have fun. Read financial books in order to make yourself educated and make a best budget for your family.
