5 Ways To Live On A Budget

Managing money can be a task especially in this period of inflation. Despite the increase in the prices of commodities, some people are still earning salaries that can barely cover all their needs. Nevertheless, there are ways that can be adopted to ensure that one does not exceed one’s budget. Let’s take a look at some of these ways.

Stick to your needs

Inasmuch as expenses vary from one month to another, it is very important that one pens down the unavoidable needs. Do not just draft your needs, also stick to them. Shut your mind to what is not needed in your budget to avoid spending beyond your budget. In simple terms, limit your spending.

American writer, Sinclair Lewis said, “It isn’t what you earn but how you spend it that fixes your class.” Hence, one must be cautious while spending money.

Delayed gratification

There are certain needs that can be pushed forward if meeting them isn’t compulsory at a given period. For instance, if you are planning for a holiday trip and there are other important needs to be met on your budget, you can delay your holiday trip till you are properly ready for it. Ensure that whatever plans you are making, your budget can conveniently cover it.

In the words of Ugandan management coach, Rosette Wamambe, “Budgeting is not just for people who do not have enough money. It is for everyone who wants to ensure that their money is enough.”

Avoid borrowing

Proverbs 22:7 says, “The rich rule over the poor, and the borrower is slave to the lender.” This Bible verse clearly eschews borrowing. Inasmuch as it is not a sin for one to borrow and pay back when necessary, it is also important that one should stick to one’s budget. When borrowing becomes a habit, it can be disastrous.

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When one borrows, it stretches one’s budget and could hinder the ability for one to live within a budget. In this regard, discipline is very necessary. No matter how tempting the offer is, do not borrow when you can live within your budget.

Buy in bulk

Buying in bulk will help to reduce price of items. However, if the items needed are quite expensive and would make one to exceed one’s budget, then one can buy in suitable quantities. In all of these, the emphasis is still on sticking to one’s budget.

Diversify your sources of income

Money is very important in maintaining one’s standard of living. Hence, it is advisable that for one to successfully cover one’s needs on a budget, one should have more than one source of income. Diversifying your sources of income will help to attain financial stability and also give you the life you desire. However, having additional sources of income is not an avenue for one to live above one’s means. It is important to still have a budget and stick to it.