Saving is the first step to secure your future and to get rich of course. However, the most difficult task is to initiate savings. People always seem to make plans on saving them but end up spending that money elsewhere. You have to stay determined by keeping a purpose on why you want to save your money. Either you want to buy a car, a house, secure your future, etc. In this article, we will tell you some tips on “how to save money”.
1. Calculate annual spending
Instead of focusing on the petty amounts you spend on something, evaluate how much it will cost you annually. For example, if you smoke a pack of cigarettes every day, which costs around $6, the annual cost of smoking is $2190, for ten years it would cost you around $21900. Similarly if buying snacks or lunch at office costs you around $20 a day, it would cost you around $5000. You can think of taking homemade lunch and snack packs to save a chunk of your annual income.
2. Cut down your Expenses
You need to cut down your expenses to actually save money. You should start making a two-section list of your needs and wants to reduce your spending on your wants and focus on the needs section. You can also list down your shopping list to find out how to save money on groceries.
3. Make Monthly Budgets
Budgeting may seem boring but you need to set some limits and targets (to save) and you will enjoy it when you will see you see your savings account getting fat. You can even make weekly budgets to easily manage and stay in your budget.
4. Create a Savings account
Create an interest-bearing savings account and decide an amount that you will deposit in it. The best option is to automated transfer per week or month to keep you on the right track.
5. Stop spending on high-cost brands
Stop being brand conscious, buy good things but don’t waste your money on things you cannot afford. Buy store-brand versions of stuff.
6. Write-Off your Debts
Debt and installments are the biggest hurdles in your way of savings. Stop using credit cards right away and pay your debts first before you start to save. It’s impossible to save when you have debt in hand.
7. Stay-cation instead of vacation
Another tip on how to save money is to plan indoor parties instead of bars, or restaurants, etc. Instead of spending hundreds and thousands of dollars on expensive trips why don’t you plan something fun that’s budget-friendly.
8. Switch to online shopping
It will save you snacking costs, transport costs and it will save your time as well. You can sell your stuff online as well on eBay and Itsy.
9. Try Spending Freeze Week
If you don’t have any urgent need, try a spending freeze month, week, or even a day. It will save you a lot of money that you would waste otherwise.
10. Let’s DIY
Watch Youtube and learn from plumbing to French manicures, from cooking to facials, everything. Sometimes people spend a lot on services they hire for their household work. For example, changing lights, fixing a tap, move your lawn, paint your walls, etc. You can be an electrician, a plumber, a gardener, and a painter all at once if you learn how to do it. It will save you a fortune.
I hope we’ve successfully answered your “how to save money” question. When you decide to start earning, you will figure out several ways to do it. Do you find this article helpful, do let us know in comments?