Who doesn’t want to live a simple, comfortable life but on a budget? Perhaps you’ve found yourself struggling with bills, and you cannot even take a vacation. The good news is there are life principles that will extricate you from stress and chaos.
Living a comfortable life while on a tight budget sounds like a far-fetched dream. But it’s possible. Just some tweaks, and boom, you’re happy and comfortable! However, it takes hard work, discipline, and persistence.
So, here are four principles you should follow for living comfortably on a tight budget:
- Be a Hardcore Saver
When living on a tight budget, saving should become your number one priority. Whenever you get a paycheck, 10-20% of it should hit your savings account. Ensure you do this before spending a single penny.
It might sound weird, but it’s the right step in managing your money. Perhaps failure to save is what makes you live on a tight budget. Once you save, you can then decide on what to do with the rest of your money.
Ensure you get a better saving account. It’s an insult for a bank account to earn 0.01% interest per annum. Don’t fall for such mediocre.
If the inflation rate is 1.8%, open an account that will earn you about 2% interest annually. Alternatively, put your money in a money market account. Getting better interest rates motivates you to save more.
As you save, don’t forget to build an emergency fund. At some point in life, you’ll incur a surprise emergency expense. And if that ever happens, you’ll worry less about how to pay for it.
The emergency fund should cater for three if not six months of expenses. We live in a real-world full of surprises. It can be a medical emergency, job loss, and other family emergencies.
Hoping for the best is okay, but sometimes bad things happen. So, open another money market account and build an emergency kitty.
- You Can Forgo the Gym
It might sound ridiculous, but it’s practical. A study revealed that an average American aged 18 to 65 spends about $155 monthly on the gym, which is approximately $112,000 in an entire lifetime.
Keeping fit is healthy for your body, mind, and soul. It helps you tackle your weight gain and give you lean muscle. But you can still achieve this without going to the gym.
You can take advantage of the free workout videos on YouTube. You can virtually do them anywhere and anytime. You can also take a walk when possible.
Designate at least 30 minutes daily for a brisk walk, and you’ll see changes. Walking is free yet a very efficient workout. Make it fun by inviting co-workers or friends.
Instead of using the elevator, take the stairs. Climbing stairs burn more calories than jogging.
Alternatively, you can do intermittent fasting. Intermittent fasting lowers blood levels of insulin to facilitate fat burning. It also induces cellular repair and helps in the weight loss journey.
With intermittent fasting, you only need to skip a few meals per day, and you’re good to go. You lose weight and save on food, hitting two birds with a single stone!
- Downsize Your Home
Living large doesn’t mean living better. Decreasing your home size will save you money on frivolous living. A larger living space means you have to buy more furniture, home items, and appliances.
A small home makes you prioritize what to bring home. More so, you’ll save on energy and maintenance bills. Pairing down helps you save from overcharging, overspending, and overbuying.
But as you downsize, ensure you move to a secure environment. You can look for a cluster house near your workplace for easy accessibility.
A smaller home helps you stick to your budget and curb shopping sprees. And with good savings and financial health habits, you can save more than you can imagine.
Maintaining a small home is easy and cheap. You can consider DIY décor and designate a few minutes a day to clean and organize your house.
- Plan Your Meals
We live a busy life, and the hectic schedules may not allow you to get time to prepare food. Often, we throw tons of money into “quick” food solutions. Surprisingly, these “fast” food solutions are expensive.
So, plan your meals and eat healthy with a tight budget.
You can become a vegetarian by eating a plant-based diet. Meat is quite expensive. Even if you like a pot roast, you can be equally happy eating beans and rice. You’ll only need about 4-5 recipes to alternate.
Limit your alcohol intake. No one needs alcohol all the time. However, you can have it when you’re inviting friends or having a special occasion.
We hope these suggestions help you live your best life while on a budget.