This article contains simple but nevertheless efficient and affordable ways and techniques that might help to reduce daily costs. The key factor in reducing costs is planning budget in advance. Of course, it is impossible to plan all the costs but at least common ones will be enough.
It is impossible to save much without planning. This planning should be applied to the sum more than 10% of a total budget. An interested reader might ask why exactly 10%? According to my experience, exactly 10% of additional costs cause financial misbalance. This data was collected thanks to questionnaires of randomly selected people and friends and family. There are also plenty reliable sources of information on the internet. So, just believe in it.
All these methods or techniques whatever people call them are based on planning. So, there are very efficient.
1. Conduct costs planning monthly
This plan should contain all the costs expected this month. It is better to be as specific as possible. If it is impossible, just write down the approximate price as precisely as possible. By means of this approach, one will be aware of the amount of money he or she spends. As the result, there won’t be any additional or unexpectable costs in the course of a month. Use a simple notebook or Excel file. Both ways are acceptable. It depends on personal preferences.
2. Plan to buy something expensive beforehand
An average person’s salary is far from being huge so it is extremely necessary to plan future purchases especially if it costs much. For example, it is a fridge or a TV. The previous method will help to evaluate expenses and decide whether it is possible to buy this item next month or in two months. Try to avoid spontaneous purchases since it might cause unexpectable financial problems. Don’t forget about holidays and birthdays since gifts and other things like food or decorations might also make current financial situations rather unstable.
3. Buy food only according to the list prepared beforehand
Let’s pay special attention to the food since it takes much of our money and there are a lot of factors that influence the amount of money spend on it. Therefore, write a list of products that have to be bought and then go to the supermarket or whatever you go to do shopping. Remember, strictly follow the list without buying anything that wasn’t involved even if it is crucial and was forgotten. It is better to make a new list and buy them next time. This is a matter of discipline and little psychological trick to turn a simple list of products into dogma that can’t be dismissed.
4. Hunger is our enemy
It may sound ridiculous, but according to scientific research, hunger person at the supermarket will buy more than was planned regardless of the importance of this thing or product with a possibility of 90%. It is easy to check it. Conduct a small experiment. Go to the supermarket being hungry and being full. The difference will be obvious. It seems that the hungrier we are, the more products we want. It is simple psychology but it really works. It is easy to convince oneself that these chocolate bars are really needed. So, try to eat before going shopping.
5. Take money according to the need but not according to the desire
It is also a very simple psychological tip that might be helpful. If one follows all the previous tips, he or she has an already made plan or a shopping list and knows how much money is needed. The one who will take more money than needed is doomed to spend more than planned.
6. Make an analysis of costs comparing with previous months
This simple analytics might help to compare costs from month to month and define whether it is possible to decrease them or exclude certain items or products that are absolutely unnecessary. However, there is a small possibility that one doesn’t have unnecessary costs at all. It means that all the previous rules were followed and he or she moves in the right direction.
7. Get rid of debts
As for me, any debt is like a virus that takes all the space in my thoughts. Pay off all the debts regardless of its origin. Whether this money was borrowed from a friend or a relative or it is from a bank. Any debt is additional costs that should be eliminated by all means.
There is no need to cut the budget and give up buying really important products or items like a crazy. This is wrong since these tips are intended to help people control their budget in the first place. Control all the costs, observe all the changes and eliminate all the unnecessary costs if they take place.
These methods can easily be customized since every person has its own means of living, salary and other factors that can influence reducing costs process. In general, control money will be the first piece of advice for every wealthy man. If one can’t deal with average salary it is impossible to control huger salary let alone millions or even billions. That’s why it is crucial to be aware of all the costs.
About the author: Melisa Marzett provides custom writing services