declutter your budget

What Costs To Cut When Trying To Declutter Your Budget

September 8, 2020 5:16 pm Published by

What Costs To Cut When Trying To Declutter Your Budget

Having a cluttered budget will not only lead to your finances being unorganised but also it could lead to further debt. So, we advise that you try and spend some time to declutter your budget. Although, this is easier said than done. You may not know what to remove or where to begin and that is completely normal. Therefore, we have put together a few costs that you can cut when trying to declutter your budget.

Your budget may be full of things which you do not need, causing you to overspend. Certain things might seem like daily essentials, but are they actually? Before trying to remove things you need to examine your current monthly budget and see what you are spending money on, small or large. This way, you get a complete idea of how you are going to make changes.

Consider the bigger expenses

Typically, the bigger outgoings in your bank account may be the most important. For example, debt repayments, bills or yearly subscriptions etc. So, when trying to declutter your budget, you could focus on these to get a better understanding of whether or not they are essential. Obviously, there will be certain elements which you must pay and keep on top of, but you may find some of your larger expenses can be cut down or removed. Some of the most common examples are:

  1. Gym Memberships
  2. Eating Out
  3. Overspending On Food Shopping

The small things add up

The larger expenses are not the only things which can add up to a ton of money. The small expenses add up too, this is because we spend money more freely when the prices are low, maybe even thinking they do not impact our accounts. But in reality, the small amounts may even be whats holding you back. If you are somebody who spends a lot on small purchases, we suggest that you section your budget and create a dedicated section/amount to spend on these things.

Make your budget simple

Perhaps you have looked at your finances previously and just split your total into a few sections, unsure of what to do. If this is you, then we can help by offering some more simple techniques for you to try out. Creating your own budget may lead to failure to stick to it, overspending and even over cluttering. So, finding a professional one which works for you is something which you could focus on. One of our favourites is the 50/30/20 rule which was coined by Elizabeth Warren. This splits your finances into three sections, 50% for essentials, 30% on things you want and the remaining 20% should be saved. This method makes it simpler and easier to budget. For more help with budgeting click here.

Tags: , , , ,

Categorised in:

This post was written by Charlotte K

Comments are closed here.