Stop buying things you want, and only purchase essentials.Read more about Simple Ways to Save Every Day. These “nice to have” items do not have to be cut from your life forever, but cut them at least until you have more income or you can balance your expenses with the income you have. If you are honest with yourself, there are usually things that can be eliminated to decrease expenses. Reducing food costs is a good place to start. Examples of this are upgrading technology when it isn’t necessary, poor cellular phone plans, or buying food items in pre-packaged, more expensive ways. You can still be overspending on these things without realizing what you could be saving. These “nice to have” items do not have to be cut from your life forever, but cut them at least until you have more income or you can balance your expenses with the income you have.Beware of the purchases that are things you “need” like food or cell phone. Decreasing the frequency of these items may be enough to balance your budget. If many of your expenses are “want” expenses, this is the easiest place to cut spending without cutting too much out of your life. Needs include expenses like food, shelter, cell phone and basic clothing. Need – something essential you need to have to lead a healthy life. These expenses change from week to week and are the most flexible expenses in the budget. Examples of wants include haircuts, beauty supplies, magazines, Netflix, eating out, new clothing, sports and recreation. Want – something you would like to have but is not essential. Review the expenses and look for any areas where you might be overspending.Īll expenditures can be identified as either a “want” or a “need”. This is usually the easier place to make changes to your budget. Many of these benefits are only available if you ask for them so be informed about what you might be eligible for. The booklet Get Your Benefits, is an excellent resource to identify any programs or benefits you might be eligible for. You cannot get some government benefits if you do not file your taxes, and there are many different benefits and assistance programs available. Even if you do not make any money, you should still file an income tax return each year in order to access government benefits.
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When you complete your budget of income and expenses, and your budget bottom line shows more money spent than brought in, this will create a cycle of debt that no one wants to have.ĭo not be discouraged.
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