5 ways to stick to your budget & save money in 2021

Since the outbreak of the pandemic, things have not been the same, the economy has been dwindling and some people if not all lost their jobs while others experienced steep pay cuts.

It is also no secret that most people might have dipped their hands into their saving baskets more than they should and now it almost seems like a pipe dream trying to recover their lost money.

To save money, you will not only need a reasonable budget but you will also need some level of discipline in how and what you spend your money on, here is how you can start:

1. Spend what you have
The greatest financial pitfall you can get yourself into is debt. To jumpstart your savings, you should be able to spend the money you have and not take loans from friends, loan sharks or even saccos to make purchases or supplement your budget. If the budget isn’t working, redo it once more and take away unnecessary or the less important tasks from your budget.

2. Avoid impulse buying
This could also be another reason why your money can’t make it to the end of the month or you lack any savings, you are always making unplanned purchases. These can be triggered by clearance sales from your favourite shops, if faced with the problem, sleep on the purchase this way you can have enough time to think on whether the purchase will mess your budget or throw off your savings.

3. Shop with cash
It is easy to fall prey to an unnecessary purchase when you have the money at your disposal, to avoid this you can carry the exact cash you need for grocery shopping or house supplies to keep you on track. You can also write down a list of the items you need so you don’t spend a lot of time wandering through aisles at the stores and second guessing everything you are supposed to be buying.

4. Have multiple bank accounts
Splitting up your dough into multiple accounts can make life so much easier, as well as prevent you from “accidentally” spending it all. For example, have a savings account for your savings, one checking account for fixed expenses, and a second checking account for your spending money (which includes anything from groceries to “fun”). That way, you only ‘see’ the money that you can spend, without having to think about what’s coming up next.

5. Budget to zero
When creating your monthly budget, ensure every shilling is catered for to the last penny. This doesn’t mean you spend all your money at once, it means all your money should fall under a category in your budget, if you have any excess it should go under the savings category. This way you won’t feel the urge to spend money that has no use instead you can save.