If it was up to us, we would want money to grow on trees. Unfortunately, it’s not happening. For many, living from paycheck to paycheck, scraping the bottom of the piggy bank just to get by is a common scenario. But it shouldn’t be that way if you are making conscious decisions to set aside money every month for a rainy day. Below are some practical tips on how to save money. It’s never too late—or too early—to get smarter about your finances.
Follow These Tips On How To Save Money For A Financially-Secured Future
Set A Budget
And stick to it! At the top of tips on how to save money is a budget, because knowing how much you make is not the same as spending it wisely. A budget strikes the balance between your expenditures and savings across a timeframe.
When setting a budget, make sure you take everything you spend into account. This means credit card bills, monthly loan repayments, groceries, entertainment, and anything else that applies to your budget. By doing so, you can work around a figure that lets you live within your means.
Manage Your Debt
Debts are “good” in some ways. They help to improve your credit score, which in turn allows you to secure bank loans when you’re buying a house or car. However, there’s a major caveat to this: you must pay on time. This means never allow credit bills or student loans to snowball. The longer you delay, the more the amount adds up.
Avoid late payments by committing to a direct-debit plan. Whenever possible, pay more than the required minimum amount, otherwise, you’ll end up paying lots more in interest. Getting out of debt is no easy feat, but if you’re persistent, you could be debt-free sooner than you think.
Sell Unused Items
Everyone can get on this tip on how to save money because we are all guilty of hoarding things when they’re no longer useful. While some items are worth keeping as mementoes, others probably not so much. Whether it’s old furniture, clothes, cookware, tableware, books, or even smartphones, you can put them up for sale on Facebook groups and mobile marketplace apps.
Utilise Credit Card Rewards
Your credit card comes with a slew of rewards and cashbacks that can stretch your dollar even further, whether that’s taking advantage of store discounts or points to cash in for petrol. Just be sure to pay before the due date to avoid incurring interest and penalties.
Pay Attention To Your Grocery Budget
Ever been on a grocery trip and ended up spending more than you should? Like, you were supposed to only get vegetables and fruits, but your trolley was filled with titbits instead? It happens. When it comes to tips on how to save money, it starts from knowing what you need to spend on. The same applies to grocery shopping.
Before weekly trips to the supermarket or making online grocery orders, set a budget for your shopping list and focus only on the essentials such as cooking oil, salt and sugar, sauces, and meat. If there’s still some money left after getting the necessary items, you can then spend it on snacks and beverages. That said, it’s important to know that you can pay it forward by using the leftover money for the next grocery run.
Reduce Electricity Consumption
Among the tips on how to save money, this is probably the easiest. All you have to do is make a few tweaks at home and you could slash off a good amount from your monthly electricity bill. Start with some things like taking shorter showers (not fewer please), unplugging electrical appliances when not in use, washing your clothes in cold water, and turning off the lights and TV before heading out.
DIY Home Repairs
You don’t have to call in a handyman every time something breaks. Why? First, it can be expensive. Second, you’re capable of fixing it yourself with a quick Google search and the necessary tools. You can start by changing light bulbs, putting up the curtains, painting, or even changing a broken sink faucet.
Invest, Invest, Invest
Parking your money in a savings account is great, but it doesn’t exactly yield good interest rates. To make your money work for you, investing is the way ahead. You can start by segmenting a small portion of your salary and increase the amount when you’re comfortable and confident enough to do so.
There are many ways to invest today. From ETF and unit trust funds to cryptocurrencies, find one that works for you best. This means educating yourself and evaluating the risks and returns, so you can truly maximise your capital without biting off more than you can chew.
Use These Tips On How To Save Money If You’re Struggling With Your Finances
Understanding personal finance can be intimidating. You know why it’s important to save, but with what’s going on in the world now, it can be something that weighs heavily on your shoulders. Start by recognising your financial misgivings and slowly correct them. Take time to organise your spending and stay on top of it. If you need assistance, there are plenty of financial books to steer you in the right direction.
While you take initiative to be financially independent, don’t neglect your personal wellbeing too. If you’re stressed out, segregate time in your daily schedule to practise mindfulness or break a sweat with these workout apps.