When you are short of money and find yourself limited to a budget of 500 euros per month, it is important to know how to manage your budget. The following 10 tips can help people live within their means and maintain their quality of life.
1. Determine your budget
The first thing to do is to determine the monthly budget available to you. When you have established the amount available, you can divide your money into different categories. First, you can set aside money for short-term cash flow for essentials and services such as food or paying bills. After setting the base budget, you can determine how much you need to fund things like travel, outings, or even contingencies.
2. Track your budget using an app
Once you have established your monthly budget, tracking your budget can be very useful. Fortunately, there are many budget management apps who can help in this regard. There are many good tools available in the market such as Money Lover, Pocket Expense and Goodbudget. Each has its own functionality and is designed to meet different needs. For example, Goodbudget is a credit budget and Money Lover provides quick access to expense reports. There are applications that allow you to access your financial data directly from a bank account, a very practical system to better understand its consumption.
3. Don’t cannibalize your savings
When your budget is tight, you may want to look into your savings account and dip into it to pay for your expenses. Although it may seem like a tempting idea, it is also the most dangerous. Your savings account should be used only when unforeseen change related to major expenses (car repair, medical emergency, etc.). It’s a temporary solution that will help you stay the course when your budget is put to the test.
4. Avoid debt
When you’re on a tight budget, you need to be careful to avoid debt as much as possible. Once you find yourself in a debt situation, it can be difficult to manage and the accumulation of interest can quickly double the amount you owe, which can have negative consequences in the long term. You may want to consider using low interest loans or to prepaid credit cards (such as the good) that can help you get by when you’re short on cash.
5. Think about discounts and freebies
The next tip for living on $500 a month is to look for discounts and freebies. Apps like Groupon may offer exclusive discounts on the products and services you purchase. Other programs may also offer gift cards or special discounts. Gift cards are a great way to manage your budget and take advantage of discounts and offers over time.
6. Use coupons
Coupons are a great way to save money and there are now many websites and services that offer coupons to print or use online. For example, Groupon offers exclusive discounts and discounts. Also look for promotional codes on websites and shop online if it is more financially advantageous for your budget.
7. Choose cheaper food
When your budget is limited, you will need to find more affordable ways to buy food. You can save a lot of money by taking the time to compare the prices and shop online. Discount supermarkets like Lidl or Aldi can offer products at low prices while maintaining quality comparable to other brands.
8. Don’t miss expiration dates
Coming back to the subject of food, expiration dates and discounts should also be taken into account. Win-back foods, i.e. products discounted because they are about to expire, go very quickly because they are very cheap. If you buy groceries at a reduced price, you must ensure that you consume them before the deadline.
9. Trade or exchange goods
You can also save money by adapting your lifestyle. One way to do this is to trade or trade goods. At present, there are a large number of platforms on the Internet that offer trading and exchange services. Moreover, promotional books such as coupon books, discount cards and online passports can also help in getting discounts and saving money.
10. Think outside the box
Finally, when your budget is limited, you must know how to fully exploit your resources. One way to do this is to think of original outings and trading favors with friends. You can also choose to go to a restaurant with your friends instead of going to the movies. Also consider the exchange of services. If you have a car, you can offer carpooling services to people who need it.
All in all, living on $500 a month isn’t easy, but there are ways to cut down on day-to-day expenses. By applying the 10 tips presented here, you will be able to maintain your quality of life and manage to live on a tight budget.