With interest rates soaring and the prices of petrol and basic grocery items heading skyward at a rate of knots, it is getting harder and harder to make ends meet. It can seem tempting to turn to short term personal loans, credit cards and hire purchases so that you can afford those unexpected bills, or those little extra treats you are used to. But in the long run this is just going to cost you more and mean that you have even less money to spend what with your regular repayments and interest charges to take into account.
So, how do you make sure you can pay all your bills or take that much needed holiday when your expenses keep going up and your wages can't keep up?
Budget
Set yourself a budget and follow it. If you have trouble sticking to a budget, then get rid of your credit and debit cards and set yourself a cash budget for groceries, petrol and sanity money. Pay the rest of your bills directly from your bank account. Its much easier to stick to a budget when you have a physical reminder of how much you actually have to spend!!
Pay yourself first
Make saving a priority. Even if all you can afford to start with is a dollar a week. It adds up over time and means you have a back up available for those unexpected expenses.
Pay off existing debt
Pay your existing debt off as fast as you can - even if it means saving a little less. The fewer commitments you have for your money the more choices you have about how you live your life. Its well worth sacrificing the cable TV and daily coffee in the short term so that in the long term you have more financial freedom.
Make your own lunch
Take your lunch with you to work - try setting up a brown bag club with other like minded individuals and take lunch to share.
Walk
Only use your car when you absolutely have to. Walk to the corner store for your milk and bread, walk your kids to school. It saves money on gas and you'll be keeping fit too!
Borrow or Barter
If you need something done and don't have the time, tools or skills? Instead of paying out money for new gear or a tradesman, see if your neighbour can loan you what you need, or offer to weed their garden in exchange for them fixing the window.
Grow your own Vegetables
You don't need loads of space for a garden. You can grow everything from potatoes to lettuce in pots on the balcony. It can really make a difference to your grocery bill if you don't have to buy vegetables!
