How To Budget and Save Money Wisely

When it comes to managing your finances, budgeting is a major part of it. When you receive your salary/income monthly/bi-monthly, you need to allot it for different things: insurance, grocery, utilities without running out of money. This is when budget comes in. I know it's not a fun thing to do but I think it is important to learn about money even at a young age. It's something I want my kids to learn now!

I'll share a few tips on how to budget and save your money wisely! I'm not an expert but I will share what I've done in the past and still do to this day.

There are a lot of budgeting methods. Find one that works for you! There's the 50/30/20 method. You ca read more about the 50/30/20 with this article from PruLife. I think this is the easiest to follow. You take up to 50% off your salary/income for needs, 30% for your wants and 20% for your savings or debt repayment. 

Debt can be from credit card loans, bad credit loans, car loans and there are a lot more kinds of loans out there (click here to know) and all of these carry interest rates. I know it's not an easy thing to get out of it but it is doable. Just focus on your budgeting method and goals. And it's better to pay them off as soon as you can so you can focus on saving because building savings can do a lot of things for us.

Small tip: having a piggy bank to put in all your loose changes helps too. It may be a small amount but having a "place" to put them in and count your savings at the end of the year. Whatever the amount can be used for your wants/needs or into your savings. 

Another budgeting tip that I adapted to this pandemic that really helped our budget is sticking and cutting down (a bit) our grocery budget. With the help of online grocery shopping, I can monitor our monthly grocery bill. Because I can see the running total of my grocery cart, I've learned to cut down on buying junk foods! With online grocery shopping, I get to stick with my budget and avoid impulsive junk food buying.

Cancel unnecessary memberships, subscriptions. I know I am not the only one who has multiple subscriptions to different services like Netflix, Viu, Spotify or subscription boxes. If you don't use it regularly, cancel it. You can always subscribe again in the future. There are streaming services that you can share with family members that allows multiple devices, this is a great way to save and lower your monthly budget. Also, if you still have cable tv but don't watch it anymore, it's time to cancel that too!

We also lowered our cell phone plans by half. Check what your provider's offers! I got a new cell phone plan that only has 6 months lock-in, gives free Apple Music subscription for a year (which I cancelled before they charged me!). You can always get a higher cell phone plan when your income/salary improves!

We've also lessened ordering food from food apps and eating out. We have saved a lot! I try to cook every meal as much as I can. We only order food/eat out when there's a special occasion like birthdays and anniversaries. And we get the budget for this on the 30% from the 50/30/20 method.

Decluttering and selling your clutter is a good way to get rid of your old things, earn from it and put more money in your budget/savings. I've been doing this for months and it helps a lot mentally too when I see less clutter in our house. My kids have outgrown their clothes during this pandemic and I've sold a lot already and I used that money to buy them new clothes! 

These are just a few little tips that help you with your budget and savings! There are more articles that you can find online like this from Manulife.

Savings can help you fund your next travel, your kids' college tuition, retirement savings and more. Budgeting will help you get to your goal! And when you have enough money, there are a lot of ways to invest and grow your money but that's another topic for another day! :)

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