8 financial tips to live a happy life on a budget

It’s estimated that more than half of the people in the United States don’t have enough money saved to cover six months of expenses if they lost their job, and one in five would go into debt to pay living expenses. To ensure you won’t be counted among them, use these financial tips to live a happy life on a budget. Remember, saving money doesn’t mean depriving yourself of everything you want; it means making smart decisions with your money and being content with what you already have.

1. Stay away from credit cards
   don’t get too excited when you see that shiny new credit card in your mailbox. In fact, we recommend that you get rid of your credit cards entirely. Instead, keep cash on hand for all of your purchases and pay with debit or check cards for bigger ones. Using cash makes it easier to track spending and prevents you from overspending when you’re not thinking about how much money is leaving your account.

2. Budgeting
   Creating a realistic budget and sticking to it is crucial if you want to get out of debt. Think about what your living expenses are and make sure that they’re as low as possible, while still allowing you enough money left over for emergencies.

3. Don’t buy things you don’t need
   The average American is drowning in debt—in large part because they buy things they don’t need. Stop making that mistake. Be more deliberate with your purchases, and you’ll be able to stay within your budget better and avoid credit card debt down the road.

4. Set yourself up for success
   think of your overall finances as a pie. Make sure you’re putting money in all of those categories because if you just focus on one thing (let’s say credit card debt), you might only be paying off that piece of pie, and not building up anything for retirement or emergencies.

5. Having an emergency fund
   having an emergency fund is critical. The purpose of it is to have money set aside that you can use in case of an emergency or unexpected event. This could be losing your job, an expensive health issue, or many other things. It’s not meant as income for you to spend, but rather something for you and your family in case anything out of the ordinary comes up.

6. Finding ways to cut back monthly costs
   Start investigating how to cut back where you can. Stop eating out as much, start making your own coffee or tea, and invest in single-cup coffee machines that you can use at home or work. Any small changes made consistently add up over time, helping you save hundreds of dollars a year. Ask friends and family if they’re aware of any good deals or coupons available for items that you buy frequently; it never hurts to ask!

7. Use coupons at the grocery store
   buying items that are on sale or with coupons is not only an easy way to save money, but it can also be an enjoyable activity. It takes some planning, but anyone can get into couponing!

8. Get into the habit of saving and investing early
   If you’re under 40, try to save 15% of your income. If you’re older than that, aim for 10%. Even if you can’t put away as much, start now—even small amounts add up over time. And then, once you’ve got that covered, make sure your money is invested wisely.