How to Save Money with These 5 Tips
If you are reading this article, then you are probably tired of always running out of money without any backup savings. The mistake many people make when it comes to saving is that they wait till they achieve a certain milestone before deciding to save. For instance, some people plan to start saving once they get a promotion, get a raise, or when they hit a certain age. While some may stick to this plan, many don’t.
In reality, you will only begin to save when you learn how to manage your finances, and you start to prioritise your future needs ahead of immediate wants. Most times, purchasing that new iPhone is more important than our goal to save money, we would rather put it on hold. In worse cases, we tend to continue on a spending spree till we end up with credit card debts. This can then become a monthly payment that needs to be serviced. It can easily start eating deep into our wage and creating a financial strain.
All you need to do is make a few adjustments to your spending habits. Do this and you will be on the right path to developing a healthy saving habit. Here’s five points to consider:
1. Pay off Debts
It is almost impossible to save money when you have to pay off debts. Debts will always eat into your income, leaving with little for other expenses, and none left for saving. There are different ways of paying off your debts – these methods will make it easy for those who have multiple debts to pay off.
One of such methods is the snowball method. This helps you pay your debts by starting with the smallest and working up to the largest. This method may seem more intense, but it is better than trying to pay different debts at the same time. When you have paid off all your debts, you can begin to divert funds into your savings account.
2. Cut Down on Groceries
Most people are unaware of how much they spending on grocery shopping every month until they do a budget. In truth, spending money is a fun activity for many. People like walking through the aisles and grabbing all kinds of snacks and things that are not a priority. But these small cash purchases that may seem insignificant add up, taking a sizeable chunk of your budget every month.
You can save some money on grocery by buying only what is important. Also, planning your meals on a weekly basis can be a beneficial task to implement. Take a look at your food cupboard to see what you already have, because there is no point in buying what you already have.
Online grocery shopping could be another way to cut down spending. Many stores offer this service, and what it does is that it helps you get rid of the temptation to buy those freshly baked goods and ice cream. Popping online and doing your food shopping means you can plan what you need and stick to it better.
3. Cancel All Automatic Memberships and Subscriptions
With the way the world is structured today, we tend to do more on the internet than a decade ago. Now you are paying for multiple subscriptions including Spotify, Netflix, Hulu, gym memberships, print subscriptions and all kinds of services. Maybe it is time to cancel any of these subscriptions that you don’t use regularly.
The problem here is that these subscriptions keep getting renewed automatically, when you’re not using them it’s easier to forget. When you actually do the math, you will discover that you have been spending a lot on a service you rarely use. And whenever you think you need any service, consider choosing one-off payments. You will be surprised by how much money you will have freed up for saving.
Another method is to do a subscription sharing with your family or friends. This means you can keep the services that you want. For instance, services like Netflix are great because they let you watch your favourite shows on multiple screens.
4. Buy Generic Products
Many of us are drawn to brands names, even more than the product itself. If you pay closer attention to certain products, you will come to realise that it is only a matter of marketing. Naturally, the more established brands have the financial backing to push their marketing campaigns to more people than smaller or new brands.
If you are the type that focuses more on the brand name, you are likely to be spending more on a product that you can get for less and of similar quality. Everything from cleaning supplies, medicine, staple food items, and cost way less if you are willing to ignore the heavy marketing and branding.
5. Use Automatic Saving
This is a very smart way to ensure that you are saving. Automatic saving allows you to save money without thinking about it. Most bank accounts can be set up to transfer funds to a savings account monthly. You can choose to automatically save 10% of your monthly income in your savings account. This has proven to be an extremely effective way of meeting your savings target.