Recent times have created numerous financial hardships. Things like inflation and the increased costs of housing have made sustaining a living more and more challenging.
Ultimately, the key to sustaining is through managing your finances and incorporating healthy financial habits like budgeting to weather the storm. Below are a few budgeting hacks that can make a big difference in your finances and everyday life.
Use Financial Management Tools
Trying to create and stick to a budget is easier said than done. The good news is that there are many financial management tools available to help. Things like budgeting apps can help keep you on track with bills, manage your spending, and increase your savings.
In addition, banks like ONE give customers access to things like free accounts with no surprise fees, high-interest saving, and low-interest borrowing options. Pockets, which are sub-accounts (a feature included with ONE accounts), can help you distribute your funds, manage your finances, and boost your savings.
Live Below Your Means
In order to be financially stable, you need to find ways to save as much as you can. The more money you can set aside, the easier it is to survive economically challenging times.
One of the simplest ways to live below your means is to decrease the amount of income you apply to your budget. By automatically depositing money into a savings account with each paycheck, you can make sure that you have money set aside for emergencies.
Find ways to cut back on household expenses, eliminate waste, or generate more income to cover the costs to provide a buffer against unforeseen financial obstacles.
Set Financial Goals
In order to get the motivation you need to create and stick to a budget, you must set financial goals.
When you have something in mind that you’re working towards, you’re more inclined to make an effort. Whether you want to have 3-6 months of expenses in a rainy-day fund, take a family trip once a year, put your kids through college, or retire without returning to work, keeping this in your mind will inspire you.
Consider The “Cash Only” Option (For Certain Purchases)
Unnecessary spending is one of the quickest ways to throw your budget and finances out of whack. While cutting back or eliminating these areas of spending is ideal, breaking old habits is hard.
The best way to reduce unnecessary spending or break bad habits is to adopt the cash-only method. Set a limit on what you can spend. Then, retrieve that amount from your bank. Put the cash in an envelope and label it. Once you’ve used what’s in the envelope, you can no longer spend money. It helps create boundaries, increase savings, and keep you on track with your budget and financial goals.
When the cost of survival continues to increase but salaries remain the same, we must find ways to adapt. That means developing and sticking to a budget to get the most out of our incomes.