How to Manage Money on a Limited Budget

This is a very simple way to manage your money. This article helps you figure out how you can manage it more efficiently.

Steps

1
Look over all financial activity for issues. Report any unseen errors to the company. Such ideas to look through include all your paychecks, rent statements, car payments, grocery bills, receipts and the like. Make sure they are not only calculated correctly, but have the same exact items (including in quantity as well) of the items you bought during the trip.
- Include minimum debt payments in the expenses. Compare the total of these expenses to your after-tax income. Ideally, the expenses total will be less than your income total.
Set up a savings account. Look to save at least $500 per month after all bills are paid. Even if you can only save $10 a month (after all bills), you'll still make out in the long run.
3
Start an IRA or pension to save money for your retirement. Have your employer put aside some of your money into your pension account (if they offer any). If not, IRAs found at most banks can do the trick.
- With IRAs, you'll have to make your own deposits, but you are saving.
4
Purchase a $500 (or your division of currency) to $1000 (or your division of currency) certificate of deposit (CD) at the bank if you have enough money to do this.
- Use that certificate of deposit, as collateral for a loan. Over time this will improve your credit score by showing a credit history.
Become an Extreme Coupon Shopper on any item that you actually find you'll actually need/or that will be used in the near future.
Anywhere you can save each month is necessary. This is not easy, but if you can do it, it will simplify your finances and build your emergency fund.
and discount stores/second-hand stores as much as possible. Not only is most of the items still in wearable shape, but its also a lot cheaper. You may have to wash it an extra time in between transport home and first wearing, but that's a small price to pay for your discount here.
Credit card purchases are only luxury purchases, and when you are in a financial crunch (with a limited budget) there is no room for luxury at a time like this.
Advertisement

Expert Q&A

Search

Add New Question

Ask a Question

200 characters left

Include your email address to get a message when this question is answered.

Submit

Tips

If your bank has a "Keep the Change" type transfer, your purchases may be rounded up to the nearest dollar by your bank, but that extra money gets put into a savings account. The few pennies you'll temporarily loose will convert to big savings later.
Thanks
Helpful0 Not Helpful0
Some savings accounts with some banks may charge fees that you may not even know about. Contact your bank to ask about any fees they may have, or that they don't want you to know about in writing.
Thanks
Helpful0 Not Helpful0
Bargain shop around at all your banks nearby for the savings account that doesn't ask you to pay any fees or have a minimum balance.
Thanks
Helpful0 Not Helpful0