1. Prioritize your needs. Start each budget period by paying for your needs. This should include your rent or mortgage, utility bills, insurance, gas, groceries, recurring medical expenses, and any other expenses you may have. Do not put any money toward non-essential expenses until all of your necessary living costs have been paid.
2. Shop around. It can be easy to get in the habit of shopping in the same place repeatedly, but taking time to shop around can help you find the best deals. Check in stores and online to look for the best prices for your needs. Look for stores that might be running sales or that specialize in discount or surplus merchandise.
• Bulk stores can be useful for buying things you use a lot or things that don’t expire, such as cleaning supplies.
3. Buy clothes and shoes out-of-season. New styles of clothing, shoes, and accessories generally come out seasonally. Shopping out-of-season can help you find better prices on fashion items. Shopping online is particularly useful for out-of-season clothes, as not all stores will have non-seasonal items.
4. Use cash instead of cards. For non-necessary expenses such as going out to eat or seeing a movie, set a budget. Withdraw the necessary amount of cash before you go out, and leave your cards at home. This will make it more difficult to overspend or impulse buy while you’re out.
5. Monitor your spending. Ultimately, as long as you’re not spending more than you bring in, you’re on target. Regularly monitor your spending in whatever way works best for you. You may prefer to check your bank account every day, or you could sign up for a money-monitoring app such as Mint, Dollarbird, or BillGuard to help you track your spending.