If you are living on a tight budget, you may be looking for ways to cut costs. There are some things though that you should never stop paying or cut back on as in the long run, not having them could cost you more money and a lot of stress.
Start by making a list of everything you have to pay our every month, and then look at the things you really should not do without.
Mortgage Or Rent
Your mortgage or your rent should be a priority, as you need to keep a roof over your heads. Even in a tough financial situation, it is important to have somewhere for you and your family to all be together. There are other areas you can cut back on, but not your housing costs.
You need to keep your utility bills paid as well, although there are ways to reduce them. Lower the temperature on your heating by just 2 or 3 degrees and no one will notice the difference except you when the bill comes in. Leaving items in standby costs money. A TV in standby for instance, costs more than $1 a week. If you have several items, such as computers, left this way that can soon mount up to a lot of extra money on your energy bill. Turn everything off completely when it is not being used.
There are various types of insurances that are vital, and some of them are illegal not to have. You need to be insured to be driving on the roads for example, so some form of car insurance is a must. It also makes sense. If you are in an accident that was the fault of someone else, you may need to check out personal injury law practice areas that could help you, and your insurance can help with this. Sometimes, a professional is so important.
Life insurance, homeowners insurance, and many others will all help you if a disaster happens and without them, you stand to lose a lot of money.
Health insurance, just as an example, can cost as much as 20% of your income, but without it, if a family member is ill the effects on your finances could be devastating.
It is a misconception that healthy eating is more expensive than buying processed foods, the opposite is true.
You can buy fresh fruit and veg much cheaper than a frozen meal and your family will be better physically and mentally because of a healthy diet. Cut out the sugary drinks and buy water instead. Make your own meals and freeze them if you need the convenience of having them ready when you return from work. But don’t give in to the advertisers and start buying more processed foods, because you will find the health of your family will suffer.
It could well be that it is your debt repayments that is making your budget so tight but do not miss paying them. It is a great feeling each time you pay one off, but until your finances improve at least make the minimum payment on each one every month and on time. Then as your finances improve, if you need finance to replace your car or to make some other large purchase, your credit score will not show that you are a bad payer.
Retirement might seem a long way off but it will be here before you know it. If you have a job that has a pension attached you are one of the lucky ones. If you don’t have this sort of employment, you need to start saving for your retirement. The sooner you start some sort of pension plan, the more you will have to live off when you retire. With no pension income, you will have to rely on your children to take care of you, or never stop working.
Keep Looking At The List
Does your list include things such as a book club or gym membership? If so, those are just the sorts of things you should be doing without. You can get books free from a library and exercise in lots of different ways without spending money on a gym. It is more important that you are saving for college fees maybe, or paying childcare so that your career is not disrupted because you have started a family.
Of course, what you pay and do not pay is down to your choice, but just be very careful that you do not miss any of the vital things, or you could find yourself in an even worse situation.