Living within your means involved spending no more than you earn. So you shouldn't be putting purchases on credit cards or needing to delay
bill payments if you want to do so. The trouble is, we often start spending extra money as soon as we begin to earn it, this is only setting yourself
up for a fall and let's face it, who wants a fall when money is concerned? Money is a huge safety blanket for a lot of people and it's wise to have
a little behind you should anything arise that you need to pay for; a failed MOT, a flat tyre, a broken television, or an unexpected school trip.
We've all been there, and knowing you've preempted the problem and set aside some cash, is always a good feeling.
If you want to live within your means and start saving, try my tips for money management;
Get Familiar with Your Finances
If you don't know how much money you earn each year and month, you need to take a good look at your finances now. As someone who has just
become self-employed, I know that can make it difficult when it comes to knowing how much you're earning. Underestimating is better than
overestimating, though and it's wise to have a system in place for stability. I work from spreadsheets when it comes to my earnings, keeping
track of what has been agreed, invoiced and paid. It's so easy if you're juggling multiple emails and contracts to lose track and miss a payment.
become self-employed, I know that can make it difficult when it comes to knowing how much you're earning. Underestimating is better than
overestimating, though and it's wise to have a system in place for stability. I work from spreadsheets when it comes to my earnings, keeping
track of what has been agreed, invoiced and paid. It's so easy if you're juggling multiple emails and contracts to lose track and miss a payment.
Plan to Spend Less Than You Earn
Spending exactly as much as you bring in each month is fine, but it doesn't leave much room to save or deal with unexpected expenses. If you
budget, so you spend less than you earn, you'll have extra cash to save. And if your income rises, try keeping your spending the same, you're not
going to feel as though you're saving that way - but in actual fact you are. It's a great way to build up a money pot quickly, and your future self
will thank you.
budget, so you spend less than you earn, you'll have extra cash to save. And if your income rises, try keeping your spending the same, you're not
going to feel as though you're saving that way - but in actual fact you are. It's a great way to build up a money pot quickly, and your future self
will thank you.
Save Up Instead of Using Credit
While using credit cards and other forms of credit can be helpful to build your credit score, relying on them to pay for things all the time isn't a
good idea. For larger purchases, it's often better to save up than to pay more for them by spreading the cost with a card. If it's not essential then
it's really not worth racking up the extra bills, the new sofa can wait unless your old one has suddenly gone missing and do you really need that
new car for double the price you pay now? Think smart and savvy, and the savings will follow.
good idea. For larger purchases, it's often better to save up than to pay more for them by spreading the cost with a card. If it's not essential then
it's really not worth racking up the extra bills, the new sofa can wait unless your old one has suddenly gone missing and do you really need that
new car for double the price you pay now? Think smart and savvy, and the savings will follow.
Cut Costs Around Your Home
There are lots of ways you can save around your home so that you can spend less. It doesn't need to be difficult to cut your costs. Check out the
super tips below on simple ways you can save money day to day.
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