Ways to manage seasonal expenses on a tight budget

Managing money can be a bit difficult when you are on a tight budget. Emergencies can crop up at any time. You must have enough savings to meet them. However, there are some loan options to help tide you over. For instance, if you have lost your job and you are on benefits and need a loan today from a direct lender, you are eligible. The borrowed funds will help you get by unless you land a new job.

Likewise, businesses also suffer from unexpected turns of events. Property taxes, building maintenance and the introduction of a new product line are some examples of seasonal expenses. However, seasonal expenses also affect your personal finances as well. They include vacation, school fees, home improvement, vehicle maintenance and the like.

Seasonal expenses are known as irregular expenses. They happen to show up at any time of the year, and if not prepared, they will cause you to dip into your savings or apply for a loan with no guarantor.

Ways to manage seasonal expenses

Here are the ways to manage your seasonal expenses:

• Set realistic goals

First, you need to create a budget. There are various types of budget you can follow, but envelope budgeting will help you prepare to meet seasonal expenses. Once you create envelopes for holiday, school fees, home improvement, building maintenance, etc, you can automate your savings.

Write down what is important to you and then decide on ways to achieve your goals. Some of the goals you can set are as follows:

What you want	What your goal should be
· Live without financial worries · Spend time travelling · Start a business · By a car	· Pay off your debts · Build enough savings to take time off work · Save enough money to take out a business loan · Have sufficient savings for a down payment

Start with setting short-term goals and they you see in near future. For instance, if you know a new session is about to start in your children’s school and it is not easy to have pay it outright, so you can start setting aside money months before the session starts.

Make sure you prioritise goals. Think about how much you need to save and for how long. It is crucial to keep in mind the timeframe because you must be able to pay when it is due. Be consistent with your savings. Put a set amount of money each month into the envelope, and make sure you do not dip into that for other expenses. While setting goals and assigning them, be realistic. Unrealistic deadlines will only add up your frustration, and it will wreak havoc on your financial situation.

• Identify income and expenses

After setting your goals, you need to see how much money is coming in and how much is going out. Make a list of all expenses you make every month. use cash for most of your transactions and do not forget to write down the expenditure if the transaction has been made by a credit card.

Start with essential expenses because they cannot be compromised even if you have a limited budget. Focus on discretionary expenses. Inessential expenses can be one of the causes of high spending. You will have to cut back on them to set aside money for your goals. It is not necessary to completely ban your discretionary expenses. Dining out once in a while is absolutely fine.

Figure out how you can save money on discretionary expenses. For instance, you can buy groceries in bulk, buy clothe from high-street stores rather than boutiques and malls. It is vital to track your expenses.

You can do it with the help of a spreadsheet or a budgeting app. Make sure you note down each of your tiny expenses and then classify them into categories like food, travel, medical bills, utility bills, others and the like. Doing so will let you gain insight into your current financial situation. You can fine-tune your budget if you think you need to fit in your expenses.

• Separate needs from wants

You must identify the difference between needs and wants to save enough money for seasonal expenses within a particular timeframe. Many of you fail to identify the real difference between needs and wants. Needs are necessities. They include essential expenses such as food, medicines, etc. However, eating out cannot be considered a necessity.

It is simply a want. When you are on a tight budget, you should ensure that you spend money only on essential items. The money you save on your discretionary expenses can be transferred to your savings. The more you cut down on your discretionary expenses, the sooner your savings will grow.

• Grow your income

You may have to grow your income if you want to build savings for your seasonal expenses. bear in mind that it does not include savings for emergencies. An emergency cushion must be built separately. Choose a set limit for your emergency cushion a well and make sure you are consistent with your contribution.

It can be challenging to set aside for seasonal expenses as well as emergency savings. So, you should try to increase your income. With increased income, you will find it a bit easier for you to stash away money to meet your seasonal expenses.

• Keep monitoring and fine-tuning

Once you start implementing your plan, make sure that it brings the expected results. However, you will have to keep monitoring it to see whether you are making progress towards your goals. You may also need to fine-tune our budget from time to time.

The final word

You should start saving money for seasonal expenses months before. Planning is a must to have enough funds to meet these expenses. Create a budget and track your expenses. You will have to fine-tune your budget periodically to achieve your goals. However, if you still need some money, you can borrow from direct lenders. They can help you in your difficult times.