In one Journal of Consumer Research study in 2015, researchers discovered that creating a budget is the answer to making prioritised decisions and higher productivity. Participants were asked to report on their finances after a trip. The group that reported less spending essentially comprised priority planners, people who budgeted beforehand. In addition, they were less prone to impulsive buys and overspending.
How do you manage your paycheck? Do you always budget everything nicely at the beginning of the month? Or do you spend it until you nothing is less, and you then live a pathetic existence until the next paycheck?
To be frank, if you ever to achieve financial success, you should be doing budgeting.
Yet many people don’t do that. They feel that budgeting actually deprive them of their basic joys in life. They feel that it is like a diet and they have to suffer. However, if you are able to make a conscious decision on money allocation, it means that you know exactly where is going where. Wouldn’t that be better?
Naturally, you may cringe at the thought of going through all those numbers, or think that budgeting requires in-depth financial or even mathematical knowledge, but that’s all myths… But before you attempt budgeting, why not consider some money-saving measures?
Here are 3 areas you can implement money-saving measures to complement your budget:
Food – We need food every day. As you may know, the global weather is changing such that crops are being affected all the time, driving the prices sky high too. Raw materials for other daily essentials are also increasing so we have to spend more and more, especially on groceries. To spend smartly, you can try buying house brands or locally-produced food stuff rather than imported foods. In addition, online shopping may be able to shave off vital savings. So for the same amount of money, you can essentially buy more!
Entertainment – A big chunk of the portion next goes to the entertainment, such as attending concerts, going to the movies etc. Why not form a community and arrange a screening based on who has the DVD or download? That can bond community, friends and family together, and also save on the movie ticket overall. For entertainment, head out to the museums or even whip up a picnic with friends and family at the nearby park or at the coast. Check out online websites for discounted art workshops etc.
Exercise – Gyms are doing so well for many reasons e.g. the prestige that the location or brand that it carries or the sexy, fit people who are always around. Yet the gym packages don’t come cheap at all. There are so many ways to be fit and healthy. Going for swims and jogs is pretty good too. Going for nature hikes can replace the expensive gym membership. Working out at home is also feasible with dumbbells and the resistance band.
The above methods are just some ways that can have effective and positive results on your budgeting. Let us know if you have any special tips of your own in budgeting!
© LOOMI Group 2016
This article is first published on loomigroup.com
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