• The cost of living is increasing every day. For many people it’s a struggle to keep up financially. In many cases you are forced to scale down on your spending. Sometimes it’s difficult to decide where to cut the costs and what is more important before you find yourself in a financial pinch.

    1. Budget

    Budgeting is an easy way to manage your finances and curb your spending. The first thing you need to do when you start a budget, if you don’t have one already, is to prioritise your spending. You need to shop smartly and decide which things are necessities and which are extras.

    For a simple format, jot down all your necessities onto a list and assign the amount of money you currently spend or are willing to spend on those items. Add all the amounts up and deduct the total from your net income. Then you can make a list of the extra things you want and assign the amount you’re willing to spend next to that.

    Now that you have finished putting your budget together, adjust the amounts so that all these things fit into your spending plan comfortably to ensure that you do not exceed your salary. Once your budget is complete you will have to be careful not to go over the amount for any of the items and stay within the allocated figure.

    It’s a good thing to work in an amount for saving as well so that you have money for a rainy day or a holiday when you need it. This way you don’t take such a hard knock if something does unexpectedly pop up.

    2. Insurance

    Insurance premiums keep rising but they are a necessity. Luckily there are ways that you can cut down on your insurance expenses.

    One way to do this is by downgrading your health insurance. You need to make sure that you have enough money saved up for things your health insurance will not cover as a result of this.

    Shop around different car insurance companies for competitive quotes to the one you are currently using. You can even bundle your homeowners and car insurance together for a lower premium.

    Consider term life policies, over life policies. The premiums will be lower and will pay out at a certain age or once you retire unlike a life policy that pays out once you’re deceased.

    3. Food

    Food is a necessity. You need daily sustenance to stay healthy. However, there are ways to cut down on food spending that will not impact your diet negatively.

    By reducing or eliminating eating out or ordering take-out you will save a lot of money. The alternative to this is cooking your own meals at home. Cook extra so that you have left overs to take to work for lunch the next day.

    Buying non-perishables in bulk instead of weekly or monthly will save you money in the long run. Buying generic brands over popular brands will work out cheaper for you as well. Start a vegetable garden at home. Harvesting from your own garden will also save you a few coins here and there.

    4. Entertainment expenses

    Look for inexpensive entertainment options. Instead of taking the children to the theme park you can opt for a day of family fun at the beach.

    Cancel club memberships. These are monthly bills that doesn’t seem like a lot individually but when you add them together it’s a lot of money you will be saving. Cancel newspaper and magazine subscriptions as well. These are things that you can access online for free.

    5. Transportation

    Many people cherish the comfort of their own car, but it can be a very large expense. The more often your car is on the road the more it costs you as fuel prices and maintenance costs rack up over time.

    You can use public transport as an alternative to driving to save you money. Though we’re not quite up to par with Morocco's high speed train, public transport does have its benefits. You will spend less money on fuel and your car will have less wear and tear resulting in fewer services.

    If you still want the convenience of having a car, then get a few people together to carpool and save money on your way to work.

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    Header Image: The Culture Supplier