Do you feel like you’re living on a tight budget? If you do, tightening your belt before you’ve slimmed down to fit the new belt notch doesn’t feel very good so we’ve provided a simple process to get you started on the path to financial fitness.

For many, living on a tight budget means struggling to pay for needs and very rarely being able to indulge in wants. For others, a tight budget may be defined by self-imposed budget boundaries. Whichever it is, a tight budget means keeping expenses neatly in line with the amount allocated for this expense.

How do you do it? There are many tips, suggestions and recommendations to help live a low cost lifestyle but how do you set up for success? From a process perspective, gathering your information and working with the facts and numbers is the first place to start.

1. How much do you have to live on each month (after deductions and taxes)?
2. How much do you spend on fixed expenses such as rent?
3. How much do you spend on other expenses (on average)?

If you spend more than you have in monthly income, the difference comes from somewhere (if you borrow the money on credit or from friends or a lender, you will have to repay it at some point and you will owe more than you originally borrowed to compensate the lender for giving you the money).

To avoid this vicious cycle, do yourself a favour and put a plan in place to balance your budget. Reduce expenses where you can and increase monthly income where you can. Sometimes it can take a while to make it all work. In the meantime take advantage of tips, resources and suggestions to make it easier to meet your budget such as buying on sale or second hand, sharing stuff, carpooling, make your own meals, coffee and socialize frugally.

It’s very similar to healthy lifestyle choices, reduce your intake of unhealthy foods and increase your activity to get fit. Financial fitness isn’t so tricky if you take it one step at a time..or one notch at a time!