- 7 Jun 2021
- Reading time
- 5 minutes
“Where is my money going?”, is a question that has at least once crossed every adult's mind at one point in their life. You would think you have everything under control only to realize during the middle of the month that your budget isn’t where you expected it to be.
To help you reduce expenses you need to manage and control your costs. Cost controlling is important to prevent the growth of unnecessary expenses that could happen gradually, at the same time still allowing you or your business to perform at a practical and effective level.
Controlling your expenses is very important especially when it comes to people who earn less than the average wage, seeing that it is easier for this group to reduce unwanted costs rather than increase income.
How to Control Your Spendings to Lower Your Expenses
Save up 20% of your income
Organizing and planning cannot be done within a night, so you would at least need a month’s head start to create a spending profile. Typically, one month is a reasonable amount of time for gathering adequate data. Throughout this time it is important to keep notes as well as put your spendings into different categories, such as this worksheet we have prepared to help you keep track FOR FREE. Categorizing your spendings makes it easier to track and analyze your data afterward.
Make a copy of the free sheet that we provided and with the formulas ready to go you can make sure to save up to 20% of your income and check with what you are left at the end that can enjoy spending. If it’s more than 20% you saved up a good amount of money.
How to proceed?
The first thing you want to do is to monitor your finances. So, if you want to cut down on expenses and start saving up you need to pay close attention and observe any useless costs you might be making. You could do so by taking notes to keep track of everything as well as keep track for later analysis.
Costs such as electricity, water, and other bills wouldn’t need much managing since they are essential and obligatory to one’s life. But for other costs such as food, drinks, clothes it is possible to find cheaper alternatives to it.
After reviewing the expenses you made, try and compare what you wanted to spend in addition to what you did spend based on your budget, to give you an idea of which costs you should cut down from. In case of overspending focus on cutting down in certain areas whereas if you spend too little you might want to add that money into a savings account as well as debt payment.
Do you think that saving up to 20% is too much? What if I told you that you can buy the same quality of groceries for lower prices! Sounds too good to be true? Read further to learn more about some amazing grocery deals.
Another effective method to plan and organize your monthly incomes and expenses would be to create a worksheet including all your necessary financial information to help save money. With Tesco magazine which is currently one of the leading retailers in the UK, you could get nearly any necessary product at amazingly low prices.
Not only does the Tesco magazine include low prices but it also offers great deals to help people save money. Since food is a big part of everyone’s daily expenses, Kimbino offers you leaflets which cover famous grocery shopping brands and their latest discounts on their products. These include stores such as Tesco, Lidl, Aldi, and Morrisons.
- Store: Tesco
• Product: Dolmio Bolognese Onion & Garlic Pasta Sauce 500G
• Price: £1.49
• Discount: -32.9% (page 28)
- Store: Lidl
• Product: 2 Beef Sirloin Steaks
• Price: £7.49
• Discount: -20% (page 1)
- Store: Morrisons
• Product: Selected Frozen Vegetables
• Price: £1.50
• Discount: -33.6% (page 5)
- Store: Aldi
• Product: Westacre Sliced Cheese
• Price: £6.49
• Discount: -7.7% (page 17)
Data source: https://www.kimbino.co.uk/
Each of the stores above delivers weekly offers, which we highly recommend to check out starting from Tesco offers. Buying products at discounted prices can help you allocate a much bigger budget to increase your savings. The great thing with Kimbino is that it gathers all offers in one place, so it is really easy to check them online quickly.
39 percent of adults in UK can't manage their money
According to the Financial Capability Survey developed by Money Advice Service to identify and focus on improving financial capability, it shows that 39 percent of adults in the UK don’t feel confident enough to manage their money. Considering that, around nine million people of the UK’s population are in serious debt, and only a third receive help.
When you control your costs and set a budget you are setting boundaries to stay and keep your finances on track. So whenever you focus on controlling your costs, you are basically working towards your financial goal. And why is that so important?
• It Helps Prepare For Emergencies
In cases of emergency, a significant percentage of the British population might appear to be in trouble. According to Finder, one-third of the adults living in the United Kingdom have less than £600 in savings whereas, 9 percent of the population have no savings at all.
Life can be unexpected and full of surprises especially the bad kind of surprises which are those of emergencies. From medical emergencies to household emergencies, if you’re not financially prepared it might be difficult to get past them. Make it a necessity to frequently control your costs and live on a budget to avoid any type of unpleasant situations where you might feel helpless such as financial challenges.
• It Helps Secure Finances
There is a possibility that someone might be logged into your bank account and use your money. If you go weeks or months without checking you are risking your financial security. Needless to say, checking your income and managing your budget should be an everyday task to avoid any type of inconvenience. It’s better to figure out if anyone’s been using your account early on the process rather than months in.