With the increased cost of living, and salaries not always increasing with inflation, it can be hard to stretch your money through to the end of the month, even on a dual household income. However, many people don’t have the luxury of two (or more) people contributing each month, whether it’s because they’re a single parent family or because one person is currently unemployed. Trying to make it work on a single income can seem impossible! However, while it’s certainly not easy, there are a few things you can do to help meet your financial obligations and stretch your money just a little bit further. Take a look at our top 3 tips.
- Create a budget, and stick to it
For households on a single income, setting a budget each month is vital. A budget allows you to understand where your money is going, and adjust your spending accordingly, so you know where you can cut costs, pay off debt or afford to put a little bit of money away each month.
- Live within your means
Champagne taste on a beer budget? Be realistic about what you can afford. A fancy new car, for example, sounds great, but don’t forget that it comes with high monthly repayments. You’d be better off shopping around for a better deal on a second-hand car, one that you don’t need to worry as much about each month when it comes to repayments and maintenance.
- Eliminate unnecessary expenses
DSTV, gym contracts and magazine subscriptions, to name a few, are a privilege, not a necessity (if you’re honest with yourself). So if you find that you only get to the gym once or twice a month, and scroll endlessly through the TV channels looking for something to watch, then it could be time to reconsider these luxuries. Plus, when you add it up, you’ll find that eliminating these unnecessary expenses could save you thousands each month.