Getting by on Less : Practical Recommendation on Personal Budgeting - Article Example

?One of the most unfortunate realities of the current generation is the fact that individuals are forced to live in a more economically challenging environment. Although the industrial growth and subsequent technological growth that the United Kingdom and many of the nations that experienced over the past half-century has contributed to a great level of wealth generation, the current economic hardships that are face the world over have constrain the level to which individuals can spend, quality of life that they can enjoy, and subsequently has a profound impact upon the way in which individual financial decisions are made of daily living. In order to provide the reader with an understanding of the extent of this problem, this brief response will focus upon some of the ways in which individuals living within the current constraints can seek to save money on food, transport, shopping, rent, entertainment, and other factors. Accordingly, it is the hope of this author that after a thorough and careful review of some of these practices, a general improvement in the quality of life can be experienced by individual take such advice. Such an improvement in the quality of life will of course necessarily be facilitated by an increase in the overall level of discretionary spending that individuals have at the end of each and every month/week. The lives of individuals within the current world are strained by a high level of time demands. As compared to previous generations, the workforce of today works more hours with less time off. Moreover, in specifically difficult economic situations with regards to low income or the life of the student, it is oftentimes required to work a job, or a second job the, as a means of making ends meet. For the student, this is particularly difficult due to the fact that the majority of their time is spent studying; with invariably little if any extra time for leisure or work related activities. The reason that this lack of time exhibited within the current generation is of such importance to saving money is most effectively understood with regards to the price food. Food is one of the more expensive fundamental needs that the individual must supply themselves upon a daily basis. However, the reality of the matter is that the perennial trade-off between time and money is painfully obvious with regards to food. What is meant by this is the fact that cheap food is oftentimes readily available quickly whereas more expensive food will require the individual to spend a great deal of time preparing such food. In such a way, a secondary issue with regards to overall health is brought to mind (Wang et al 63). Although there are many ways in which money can be saved on food, it will be the recommendation of this brief analysis that the level of savings to which can be realized with relation to must necessarily be limited. This is of course due to the fact that cheap readily available food has a drawback that is exhibited over time. This drawback is of course with relation to poor health, obesity, diabetes, heart disease, and a litany of other factors that are oftentimes attributed to readily available/low-cost/what quality food. However, this is not say that no money can be saved on food within the life of the individual. Rather, it is the understanding of this author that the most important way to limit the amount of money spent on food is with regards to cutting down upon the number of times in which an individual chooses to eat out in any given week/month. Although the process is convenient and does necessarily save time, it comes at a high overall cost. For instance, the average meal in a standard restaurant for dinner can easily range above 20 pounds. With this amount of money, an individual could easily provide themselves, and possibly their family, dinner for several days. Although it is been emphasized many different times by a litany of individuals, the reality of the situation is that careful shopping combined with making it clear that it to list prior to going to market is one of the most effective ways to budget serve the amount of income that would otherwise be spent on impulse buys with relation to food. Likewise, the advice that one’s mother always gave with regards to never going to the grocery store hungry is not only humorous but exceptionally true with regards saving money on food purchases. Quite obviously, there are number of ways in which money can be said with regards transport. If an individual is living within the confines of a large metropolitan city such as the city of London, the necessity to own and operate a vehicle is necessarily all but nonexistent. In addition to having to pay for the gasoline, road tax, parking spaces, maintenance, and a litany of other costs, a vehicle only serves to pollute the environment to a greater degree than more efficient forms of public transport. Additionally, the cost of ownership and maintaining an automobile is necessarily higher than the cost of writing public transit. There are of course a number of ways in which money on public transit itself can be saved as well. If this is a person’s primary mode of transportation, there are multiple different types of student passes, multi passes, monthly passes, and a variety of other financial instruments through which money can be saved based upon the regularity/frequency of travel that is exhibited. Rather than merely being a one size fits all approach, the transportation costs within the United Kingdom, and London specifically, attempts taken mind the fact that individuals have differing needs, schedules, and economic constraints. Lastly, and quite obviously, seeking to plans one itinerary ahead of time is the primary means by which money can be saved in transit as well as through a variety of other decisions the individual must make (Grant 146). In this way, choosing to take the cheaper form of transit and planning and itinerary around that is able to save several pounds per week, oftentimes much more, and has a compound affect when used as a general approach to life in transit. Finally, reducing the number of taxi rides, and after hours transit whenever possible is a further means by which additional money can be saved process of transportation. A further aspect in which individuals can seek to save money is with regards to renting. This particular decision can be particularly difficult due to the fact of the trade-offs and benefits that it necessarily represents. Whereas a particular apartment might necessarily be several hundred pounds cheaper in a particular district as compared to another, the reality of the situation is that much of that money will be spent with regards to the amount of time an additional cost that it will require the individual to expand with regards to getting to their final destination each and every day (Gustav 58). Additionally, renting in a cheaper area also poses the necessary drawbacks of overall safety. Although it should not be understood that this author is advocating that cheaper rents necessarily represent the risk of crime, the correlation is nonetheless of the in many neighborhoods around the United Kingdom. However, a more reasonable and logical approach to attempting to save money while at the same time reducing transportation costs to and from school/work is to attempt to find a roommate in order to defray costs. Such an approach is of course not ideal; however, it can help to half the amount of money that an individual would such a level of assistance represents one of the most phenomenal cost savings that had herein been discussed. Although not the weakness of everyone, shopping can be another aspect that incurs high monetary cost upon the individual budget. This particular category is so broad that it cannot be understood as merely apparel shopping. Rather, personal tastes and desires the help to differentiate a different shopping dynamic for each and every individual. In this way, rather than particularly focusing upon one level of shopping and saying that reduction in this particular aspect is a means by which all individuals can save money, the author instead understands that it is necessary to create a budget and seek to define all unpredicted/impulse shopping within such a budget. Ultimately, shopping should be broken down into two distinct categories. The first form what is Artie been discussed with relation to grocery shopping is something that is necessity and can only be reduced in overall cost by effective planning and management. However, the second determinant of shopping is necessarily that of the way in which individuals spend money on nonessential/non-planned purchases (Weisser 59). In such a way, it is necessary for the individual to set out each and every single month a plan with regards to the level of money that is coming in and the level of money that is going out. This of course is the definition of the base budget. The intention of such a budget will be that at the end of every month, overall level of assets taken in will be higher than overall level of expenditures. In such a way, debt will be minimized and a level of savings will be affected. Though it is not the intention of this brief analysis discuss specific percentages that the individual should expend upon shopping each and every month, a fair estimate would be that one should engage in no higher than 50% of overall rent and utility cost each and every month. This figure of 50% is of course contingent upon the overall level of income that the individual has each and every month. Similarly, with respect to entertainment, this is likely the second area of cost savings that can represent the greatest benefit; only after effective decision-making and planning with regards to rent. Firstly, it is necessary for the individual to realize that entertainment is not only a function of buying movies, going out with friends, downloading music, or even taking vacations, it is also irrevocably tied to the way in which individuals make purchases and other decisions. Whereas decisions relating to food, rent, and transit cannot necessarily be understood within the context of budgeting, due to the fact that these are ultimate necessities, entertainment and shopping are of course best defined with regards to the way in which they can be budgeted. In such a way, the most effective means of saving money on entertainment expenditures is by setting aside small percentage of one’s monthly income and rigidly adhering to only expending the money each and every month related to this particular category; without expanding or adding money to it. This can oftentimes be difficult due to the fact that it is not only a decision that the individual must make; it necessarily oftentimes falls the friends and family members putting pressure on the individual to participate in any given activity. In such a way, maintaining discipline within this particular aspect is probably one of the most difficult of all that it been previously discussed within this brief analysis. As has been noted within this brief analysis, there are a number of different ways that even some of the most economically challenged and cash strapped individuals and seek to change aspects of their behavior as a means of retaining a higher level of their monthly income. The constraints of the economic situation that have presented themselves so profoundly over the past several years are not likely to go away anytime soon. Rather than digging a very deep debt hole, it needs to be the responsibility of the individual to find and pursue a path of fiscal responsibility which seeks to inject a level of logic and self restraint with regards to the purchases and expenditures that take place on a daily basis. As a function of doing this, it is reasonable to expect that the individual will be able to continue a reasonably decent quality of life while at the same time saving a percentage of income each and every month. After several years of participating in such a practice, it is reasonable to assume that a degree of personal savings with a been established which will allow the individual more economic freedom with regards to purchasing their own home, investing some of their money, or seeking a further and/or higher degree of education for themselves or the family members. Works Cited Gustav, Terence. "DON't WASTE YOUR MONEY. (Cover Story)." Kiplinger's Personal Finance 65.5 (2011): 57-63. Business Source Premier. Web. 9 May 2013. Grant, Kelli B. "Live Well For LESS." Good Housekeeping 252.9 (2011): 143-146. Academic Search Complete. Web. 9 May 2013. PENELOPE WANG, et al. "PLAY TRICKS ON YOURSELF. (Cover Story)." Money 41.6 (2012): 62-63. Business Source Premier. Web. 9 May 2013. Weisser, Cybele. "THE CRISIS IS (MOSTLY) OVER. NOW WHAT? (Cover Story)." Money 39.3 (2010): 58-63. Business Source Premier. Web. 9 May 2013. Read More