In this article we expand on a few different budgeting methods, on top of earlier discussed more standard option. They could be considered alternative ways of having a budget.

Earlier we wrote about how you can improve your finances by creating budget, mainly based on fixed and variable expenses, in 7 How to live on a voluntary budget. This article will expand on that, but in a more creative manner by giving you a list of tips and tricks, to be applied as appropriate. Some items are contradictory or contain double parts, this not a problem and fully intended, as enacting all pointers at the same time would be superfluous, just pick one or two and act on those. Or create your own techniques and use those, which just might be the best option!

1 Use your bank account for all expenses, there are two advantages to this: 1 Most banks provide an automated expense report per month, giving you a fairly accurate representation of the month. Your correspondent did have to correct quite a bit, but with recurring expenses that should soon solve itself. 2 All expenses are listed in chronological order, so you immediately know how much was spent at what moment.

2 Every single week, go to the bank and withdraw a fixed amount of cash, stored in an envelope. This is your budget for the week and should not be exceeded. If you are succesful, store the excess cash in a different place/bank account. Try to save as much as possible, so you can afford a small treat which should be considerably cheaper than what you have saved. This method is primarily intended for groceries (a variable recurring expense) and general non fixed expenses (so not rent or utilities).

3 Compare with other people: The only real way of knowing if you are truly overspending is by verifying what is a normal amount. Naturally with exception of stuff that does not serve a purpose. Groceries for instance are good example, just look up how much a household of your size spends on average, and then aim to be below that amount, every time you buy groceries. That way you will be saving money, and know how much you saved.

4 Make no “full” exceptions when it comes to saving. If you really love something, keep doing it, just don`t spend all the money you save in one expense category on something else.

5 Create a financial plan: This includes things like how much you expect to spend on electricity, with the day that you have to pay it. Also expenses for work commute and groceries. Do not forget to include extracurricular activities (social event, holidays, etc.).

6 Depreciation is not just a corporate means to reduce taxes, it can be used privately to save for a new big device. Instead of deducting it from your taxes, deposit the amount in a separate savings account.

7 Set a savings goal. Saving without a goal is unsatisfactory and seems like an unending battle This should be a private goal, meaning that you are not dependent on anyone else (employers exempts on grounds that they pay you). The goal should also be something just for you, others may share, but only on your terms. Keep in mind that this is something you worked hard for.

8 Divide all expenses, of lets say 3 months past, in the following categories:

• Needs; these are not optional, they have to happen.
• Wants; the optional cash outflows that happen. You might want to reduce them as much as possible.
• Unexpected; you did not know that this was going to happen, try to save for it in the future.

Take a good look at this list and evaluate every item; do you really need this?

9 Always think before you buy; is it really required, are the cheaper alternatives, etc.

10 Utilise the 50/30/20 rule: 50% of income is to be spent on fixed expenses, 30% on things that you want and 20% is not spent. The goal is to consistently score an as low as possible percentage on the first two, and a higher score on the 20%. Any other way to allocate on a regular basis is possible, just do as much of it as possible the moment your income arrives, otherwise you risk spending or misallocating it.

11 Avoid having to many goals at once; save for one, maybe two, things at a time. This is because you cannot spend money more than once, the same goes for money deposited in a savings account. It also helps to keep your goals clear and mind focused on those genuinely important goals.

12 Optimise every little thing you can think of. Having the best tire pressure can save gas, improve even the tiniest details about your house`s isolation (think strips near windows and other openings). Go though your daily live and personal space and make a detailed list of every little detail that could be improved. Should be noted that time spent may not exceed monetary savings.

13 Create a mindset where you want to save and invest for the longer term, with short term savings: If you do not start saving and investing now, the chances of a long term profit are considerably lower than if you do save right now and get those savings to work for you.