It can feel like an insurmountable challenge to manage your expenses well in 2019.
Amid the rising costs of living with a diversification of communication and entertainment packages, it always feels like the money is hurtling backwards.
Fortunately there are some commonsense approaches that anyone at any age can adopt to push this trend in the opposite direction.
Some sacrifices and hard decisions will help, but this is an endeavour that simply requires a degree of persistence and thinking beyond the short-term.
Take Stock of Incoming and Outgoing Finances
Accountants and financial managers earn healthy commissions by engaging in some basic practices that many individuals cannot be bothered to engage with. To better manage your expenses in 2019, step number one is to run an unofficial audit of your incoming and outdoing money. It can be an unsettling endeavour, particularly when money is tight and the balance sheet is not as healthy as you want it to be. Yet ignoring the issue won’t make it go away, so take stock of the income stream and what portion of that is outgoing to various activities and bills. That will allow you to make informed decisions and understand what can be cut back and what can continue.
Avoiding Big Ticket Expenses For Loans and Credit
Outside of entering a mortgage agreement to own your own home, it is always wise to avoid big ticket expenses when it comes to loans and credit card items. Unfortunately there are credit card lenders and loan sharks who circle that like to take advantage of people who don’t manage their expenses well and leverage their situation against them. Especially when interest rates escalate the scenario to pay upwards of 10, 20 and 30%+ for a line of credit, individuals spiral into a black hole of debt and despair. This is why it is recommended to purchase items through these means that can be paid back in a short timeframe.
Embrace The ‘Less Is More Approach’
Adopting the ‘less is more’ approach might sound like a fanciful notion or a philosophy best reserved for The Great Depression, but it can be effective in 2019. Rather than simply minimising on behaviours and activities, it is better to indulge in the best of that activity in short spells rather than using it on a continual basis. That is when the activity is less a treat and just a norm. As per kev’s vape, this can be seen with individuals who switch to e-cigarettes, enjoying a wider range of rich flavours and optimising their experience without over-indulging their appetite.
Indulging in Free/Low Cost Vices
From trips to the local beach, bushwalks, playing albums on the stereo, going for runs, playing sports or hosting friends for coffee, there are free and low cost vices that can be enjoyed. Rather than splurging on big ticket items attending music festivals, going to high-end restaurants or travelling to far away destinations, this is a quality means of managing your expenses without compromising on enjoying a healthy lifestyle. Cutting costs and eliminating activities is part of organising a well-managed budget, but it still has to be replaced with something. Find activities that can be sourced freely or cheaply and indulge in those as regular replacements.
Saving Extra For Emergencies
One of the most common errors that people make when it comes to managing your expenses is allocating a budget that works for the predictable transactions. From filling up the car, paying the mortgage, the rates, the mobile bill, insurance policies and purchasing weekly groceries, we all know what has to be paid for in the coming weeks and months. However, when an unexpected medical event happens, when a car is stolen or damaged, or a trip interstate or overseas crops up for a wedding or funeral, are there the funds to access? Accountants and managers alike will highly recommend saving as little as $10 to $20 a week to ensure that money is available when an emergency strikes.