Finance Friday – (Guest Post) Elegant Frugality: Make a budget with a goal

Cluttered room - Source: Bill Longshaw, Freedigitalphotos.net

Our rapidly changing world economy, and growing concerns about the values ​​that are passed on to future generations, have led many to sit up and take a good look at their lifestyle. The parsimony and simplicity are two important steps you can take to make a difference in the future of humanity. Two of the biggest contributors to global environmental problems that is causing the crisis we are witnessing today are uncontrolled consumption, and reckless development processes. As more and more people try to find meaning and happiness in their lives and teach children what they need to know to repair our damaged planet and civilization, living frugally will help them  discard unnecessary choices, and quickly choose necessities over excess.

The frugal life, contrary to what many believe, is not synonymous with a life of misery or adversity. Rather, it is an attempt to live a responsible, ethical, consume less resources, and create real value and happiness in your life. It is the art of living well without bending away your time, energy and money on things and services you need just because your neighbors have more or better goods.

A key to life is to work your budget frugally. A budget can help you live simply without turning your lifestyle topsy-turvy. Here are some tips on how to spice up your budget, with only a little effort and planning. The tips will help you live happier and with less stress.

1. Budget for real money

The proliferation of online financial services and credit cards often obscures the actual flow process, from our view. Take your entire monthly budget and share them with big-budget heads, food, utilities, mortgages, savings, recreation, etc., in real terms. If possible, use an envelope, and the method of the real exchange rate to take the exact amount of money and pull it out of the envelopes for each budget line of the head. At the end of the month the money if you have any money left over, add it to another envelope, or a jar to save for splurging on your outside the budget.

2. Repayment of Debt Snowball

The cost of debt is not acceptable. If you add the interest you pay on your debts each month, you would be very surprised. Learn to spend your money in better ways. Using the snowball method to get rid of debt, student loans, and mortgages. List of all your minimum monthly payments of debt in a descending order. Pay the minimum amount of all liabilities first. Do this every month until the debt goes away. As each bill is paid off  add that money to the other greater bills until your debts are erased, effectively creating a debt repayment “snowball” effect.

3. Shop for bargains

Expand your savings in cart when shopping by using coupons, store pricing strategies and sales alerts. Check the prices of supermarkets throughout the week. Most supermarkets base their sales on a revolving scale which rotate on different days of the week . Typically, it is the day on which they are eager to move old inventory, especially produce, milk and other every day. If you keep an eye on their store’s clearance items you will be able to buy more for less money.

4. Supporting small businesses

Local farmers markets’ and independent shops often sell cheaper than the supermarket, because there is less load factor in the cost price. In addition, these small shops offer a more personalized service. If you buy large quantities, you can probably do a deal bigger at a small shop. Remember, however, that the growing popularity of green thinking, Farmers Market, at times can be more expensive than supermarkets depending on the popularity of the local market, especially in large cities.

5. Cash for loyalty points

Most stores offer loyalty points and reward cards that have you save on what you spend in the Store. Others factors can also increase your potential savings such as bringing your own bags instead of using store plastic bags. Collect these points and your savings will add up over time.

The best part of having and following a budget is to list your total income, list the proposed total cost of your goods, and if the cost is more than your income, than remove all of the non-essential items until your budget is balanced. Make the value of saving fun, rather than cluttering your home and environment with useless things that you eventually will forget about. Follow the suggestions here, and elegant frugality can be yours with just a little attention, and budgeting.

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About the author: Alia Haley is a blogger and writer. Amongst all her blogs parenting and beauty site is her favorite she frequently writes on topics related to apparel and fashion in trend. Recently her interest has grown in parenting and related issues like vaccination for children and newborn baby sleep.

 

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