If you are struggling to cover all of your costs, it may be a case of needing to spend less and do less until you are living within your means.
Looking at your non-essential expenditure and identifying where you can cut out or reduce costs is one way of regaining control of your spending. Socialising, takeaways, coffees, shopping are just a few areas where costs can be reduced.
If you indulge in life's little luxuries, such as takeaways or fancy coffees try the Money Saving Expert: Demotivator tool, an easy and fun tool to show how much you spend on non-essential items and see how what seems like insignificant spending, when accumulated, can add up quickly and strain your budget.
It might make you think twice and change your purchasing habits. Do you know cutting out the daily weekday coffee would reduce your annual expenditure by over £900 and cutting out £20 a week on takeaways would reduce your annual expenditure by over £1,000.
Ask yourself three questions for every aspect of your life:
- Do I need it?
- Do I need it now?
- If I do, could I do it more cheaply?
If you struggle with living within your means, here are a few tips.
- Wait 24 hours before buying something you see online or in-store.
- Suggest a budget-friendly alternative instead of just saying ‘no’ to a plan.
- Practice mindfulness: do you really need that T-shirt or are you feeling down and could use a friend?
- Turn on notifications from your bank so you get an alert every time you spend - it will help you make more conscious financial decisions.
More information on minimising expenditure
Check out our money saving tips.
You can also check out the tips on Money Saving Expert's How to Stop Spending guide to see how to save on your bills and essentials.