Spending money to satisfy the daily financial needs of the home is never an easy task. It becomes even more difficult when the amount you have either in cash or your savings or checking account may not be enough to meet household needs or may not last long.
Sometimes you wake to use the restroom only to discover that the faucet is leaking or that the washing machine needs fixing. A broken electricity meter reader which dropped from a top storage space put me in that state.
Being a recent model, it could not be fixed by the technicians, replacing it was the only option. Thankfully, I had some savings.
Savings come in handy for emergency situations where you may not have anyone close to turning to.
Families can save more if certain expenditures are cut down and adjustments made on the family budget. More so, under the harsh economics of today.
These adjustments could be made in the following areas.
1. Groceries purchases
Food bills are major expenses that no family can overlook. Cutting down on grocery spending can be achieved by buying in bulk.
Bulk buying reduces the total amount on purchases considerably, because you end up with wholesale prices as against what you would have paid if you were buying the same items in smaller quantities.
Another plus is the transport fare or money for gas that you save when purchasing is done in bulk as compared to what you would have spent when you calculate the number of trips you take in a month to buy the same product.
This does not apply to perishables as they may go bad and end up in the trash except you have a good refrigerator. It makes no sense to waste food.
Also, you can replace higher-priced groceries with quality options that are cheaper.
2. Cut down on cable subscription
So many families in Africa subscribe to cable services which cost so much yet they end up watching only one or two out of the numerous channels listed by such service providers.
If you want to save, opt for service providers that offer entertainment at a far cheaper rate, or if you love the quality of content on your current cable service provider, change your plan and go for a cheaper plan.
Remember you only watch a few channels out of the lot.
Alternatively, you could sign up for online streaming services like
Netflix or watch movies on
Hulu. This is relatively cheaper than the price charged by most cable service providers.
3. Prepare your food yourself
Replace fast food and food delivery with freshly prepared homemade meals. Nothing beats a fresh homemade meal. You will be amazed at how much you can save if you cook and eat your own meals.
Eating out in fancy restaurants should be for special moments and not an everyday activity.
4. Buy your clothes from stores which give discounts
You can save quite a lot of money buying clothes from shops which give discounts. Some stores do clearance sales and sell new clothes at half the original cost price. This saves you half the amount that you would have spent on new clothing at the regular price.
Alternatively, you could check out stores that sell fairly used clothes and pick out classy, quality clothing at far less than you would buy them in as new ones. You may even be fortunate to find new clothes among the lot, as some designers move out some of the previous season's collections to stores that deal in second-hand clothing to make space for the new ones.
5 Shop for goods with a warranty
When making that important decision to buy the appliance or gadget you've always wanted, it is better you go for products that come with warranty. This saves you money in the long run as the company that manufactured the appliance or gadget bears the cost of any repairs that are carried out within the stipulated time frame of the warranty as long as you are not responsible for such damages.
6. Pay cash for purchases
Economists call for cashless economies and tell us to pay for services easily without having to use physical cash. While this is good, paying with cash limits the amount of money you spend per time.
This is particularly important if you are trying to save money or working with a tight budget.
Paying with credit or debit cards gives you the feeling of being able to pay and more items and you end up buying things that may not be necessary or important.
So, to avoid this, only use your cards when truly needed and pay for other daily purchases with cash.
7. Cut down on high living expenses
A lot of families suffer big financial stress because they want to be perceived as something other than what they really are. Why would you want to live in a house that drains all of your income in terms of rent, and maintenance and leaves nothing to spare? It makes no financial sense.
Take a quick survey of what you spend on housing, if the cost of housing impacts negatively on family finance, it's time to check out a new neighborhood with good houses that are affordable.
If you are single, you could share an apartment with a friend or move in with your parents to be able to save more. you can always move out when you are in a good financial position.
8. Cut back on unnecessary expenses
Out of habit many people drive or take a cab to places that they could easily get to by walking. From experience, I calculated that at the end of the month, the amount I spent on gasoline was more when I drive short distances for errands, and visits that could be done by walking compared to when I actually take a walk instead.
9. Pay up all credit card debts
To completely plug up all leaky areas of finance, make the effort to pay up all credit card debts as they make up a big part of the financial challenge of many homes. These debts come with interests especially when there is either late payment or you default in payment
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