The cost-of-living crisis is rising and not going anywhere soon. So, how do you manage your budget during these challenging times? Here are a handful of strategies that will help you stretch your hard-earned dollars.
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Set a budget
It might seem like we’re stating the obvious here, but take a moment to consider how you currently set your budget. Are you being realistic?
Setting a budget before you spend is crucial. It keeps you mindful of what you need versus what you want and allows you to reconsider what you put in your basket.
The most effective way to set a realistic budget is to look at your spending in each category over the past three months and calculate an average. Remember to check the extra top-up shopping for fresh produce you have done throughout the week; these small shops add up. Categories should include essentials such as food and clothes and make room for activities, hobbies, and clubs.
Setting a budget is not about how much you think you can limit yourself to but about being true to your spending habits and needs. Being too restrictive will be challenging to maintain and likely lead to failure, which can add more stress to your financial situation. That is why looking at your average spending over three months is essential.
Revisit your budget three months on. Have your spending habits improved? Can you reduce your budget? Or have you budgeted far too tightly, and do you need to allow yourself more?
Meal plan
The best way to stick to your budget is to meal plan. This helps limit your food spending at the supermarket and prevents overspending on things like takeaways and eating out.
Check your home ingredients and list some things you can make with them. What ingredients are you missing? It will focus your shop on what you need and prevent you from buying things you won’t use.
Remember, you eat three meals a day and snacks too. One of the biggest mistakes seasoned meal planners make is only including the evening meal and neglecting the rest of the day, which often hurts your budget. Going to the store with a list of ingredients for seven main meals but nothing else is less efficient than including everything you need for the week. It will prevent you from making last-minute shopping trips or ordering local takeaway.
Meal planning also allows you to choose cheaper meals or even batch cook. Batch cooking can significantly reduce spending, as you are less likely to reach for that takeaway menu after a busy day.
Shop smart
Consider when to shop. Shopping once a month can make you less likely to overspend, as it reduces the temptation to buy items you want but don’t need. Also, avoid shopping on an empty stomach, which leads to overspending.
Use comparison websites
You’ve heard of comparison websites for all your household bills, but remember that some websites specifically offer retail price comparisons. This can be time-consuming, but put it into your monthly routine, and it will pay off. With retailers constantly trying to undercut each other, this is an excellent way to track deals without traveling to each place individually.
Buy the supermarket’s brands
Supermarket brands can be considerably less expensive than household-named goods, and you don’t have to compromise on taste. Check out websites that compare big-name and supermarket brands; their results may surprise you. Also, when shopping, look at the lower and higher shelves, which often have cheaper items, as supermarkets like the most expensive products to be at eye level.
Buy in bulk
If you have the space, bulk buying can be beneficial, as buying more of a product at one time is often cheaper. But remember to check the price per weight, as this is not always the case. Also, be mindful of the use-by dates. Items such as pasta and rice are great for bulk buying, as they have a long shelf life and lend themselves well to meal planning.
Boost your funds through discounts, coupons, and apps.
Be mindful of discounts. Retailers actively design their stores to catch your eye and get you spending. Offers can convince you to treat yourself and buy things that aren’t on your shopping list. These are often items we don’t need and don’t use.
Checking the sales aisle can often be lucrative. Be mindful of when your local retailers reduce items. It can be first thing in the morning, later in the evening, or during certain times of the year, but shopping this aisle efficiently can help you stock up. Just be careful to buy only what you will use.
Coupons are great for trimming your spending. They allow you to save a bit every time you shop, which adds up.
Many apps that pay real money exist today, which can help boost your budget enough to ensure you feel the strain a little less.
Although myriad factors are straining our budgets in today’s economy, there are just as many creative ways to ensure they stretch far enough. With some planning and determination, you can control your finances rather than let them control you.
Thank you,
Glenda, Charlie and David Cates
