Are you one of those people who feel like a king on the salary day and become a pauper after fifteen days and question yourself, why save money? Do you feel like taking a payday loan in the last week of every month? And at the end of the day, you wonder how to save money for future?
Money management is a crucial practice to become financially secure, knowing that the future is unpredictable. It takes discipline and a certain amount of sacrifice in order to save money. Moreover, knowing the reasons to save money can aid you to be more manageable regarding you money.
This article explains some easy and practical ways that will help you to know the benefits of saving.
Money management lesson plans:
1) Keep a record of your expenses
The best way to cut on unnecessary expenses is by keeping a track of spent money. This record will help you to keep a record of where you spend as well as make you identify the places where you could avoid spending.
On getting an idea of where you need to spend, create a workable budget according to your income so that you spend the salary accordingly. This can act as one of the best money-saving plans.
3) Setting a goal when it comes to saving
Setting a limit or deadline is another best technique. If you know you have a cause to save, for instance, for your retirement plans, your siblings’ marriage, your healthcare, paying the home or car loan premiums, or other reasons, it would make it easier for you to plan out your priorities. This will also give you an insight in understanding why is saving money important.
4) Do not pile up a lot of debt
Make it a habit to pay off any amount which you borrowed is another secret to a stress-free way of saving money. If you don’t clear your debts for years, it can become very expensive because of huge interest rates and it will always lead to a cash crunch.
5) Try to avoid taking services for things you can do yourself
Activities like pets grooming, tailoring, laundry, and cooking meals can be done by yourself rather than outsourcing it for a higher cost. This can be used as another money-saving tip to help you save a great amount.
6) Use coupons for goods and services
There are a lot of discount coupons and promotions available on the internet that provides you with services and goods at a discounted rate. Not only these vouchers are online but you can use these for offline shopping as well because there are various offers for different categories of buyers.
7) Try preparing your breakfast and lunch
Not only takeaway lunch is unhealthy but it is costly too. On average, a person spends $5 to $10 every day for their lunch from outside but if you cook a healthy meal yourself, it would cost you a dollar or less. By preparing your meals, you can save up to $1000 on average per year.
8) Plan before shopping for households
When you’re out for buying groceries and other necessities, generally, we end up buying unnecessary things. To avoid unnecessary expenses, create a shopping list with your priorities, and stick to it.
9) Join customer loyalty programs
For accurate strategic financial management, there are different types of loyalty programs for all kinds of commodities be it clothes, movies, beauty services, restaurants, or pubs. They have a point-based card and instant discount for membership. You can save money by opting for these as well.
10) Negotiating and bargaining does no harm
Everything from interest rates, home repairs, clothes, and groceries can be negotiated. You should not be ashamed to ask for a discount if saving money is your priority.
11) Get rid of the stuff you don’t require
Every house has a lot of things which you do not even know existed. It is best to sell such things that unnecessarily occupy space. Getting rid of old stuff and re-selling it online or through a yard sale will help you to earn money as well.
12) Create a fund for emergency
Problems and emergencies come uninvited. Keeping safety a priority, you should have a separate fund for an emergency purpose which you can access in case of unavoidable situations like losing your job or unforeseen medical expenses.
13) Cut back on drinking and smoking
Avoiding drinking and smoking can help you save money by paying cheaper life insurance premiums and also help you to stay fit.
14) Look for payment methods that provide cashback
There are many payment modes and debit/credit cards that give you extra benefits when it comes to saving money. So, you should look out for such options which charge fewer service fees and often give cashback and coupons.
15) Do not sign up for a lot of streaming channels
In this digital era, entertainment is a very important part of our life. There is a continual growth of numerous streaming apps every day but you should not be tempted to sign up for every single of them. The best way is to look for streaming options that provide you with the best plans and offer most of your preference under one roof. These small money savings tips can lead to a huge amount in the future.
16) Cut the cord
As per the above discussion, there a lot of streaming options like Netflix and amazon prime shows all the movies and shows one must be interested in it. So, it is needless to spend on a cable connection that you never use.
Investment is one of the best techniques to increase your savings. There are popular short-term and long term investment plans available in the market which is super beneficial if someone has knowledge about stocks.
18) Buy quality products and services
Invest in the best quality as it tends to provide long term assistance. So on buying quality electronics, mattresses, and other services you might have to pay a lot at the start but it avoids spending every few months.
19) Auto-Payment of your bills
There is another option for expense management which involves paying your monthly bills that’ll be directly debited from your bank account. On spending the salary on rent and every other bill, you know how much you are left with and you tend to spend wisely.
20) Energy-saving funds
Using your resources efficiently is one of the best ways to cut expenses. Switch off the lights and geysers when not using. Also, reuse your water as everything in this world comes with a price.
Just like the expenses get debited automatically on their due date, you have options available that will debit the amount every month for your savings. This way even if you think of treating yourself, you will not be worried because you already have a saved amount from your salary.
How to save money for future might seem a difficult question in the beginning and indulging in that practice might seem harder, but once started, you can see how small pennies add up to huge savings. Furthermore, awareness regarding the importance of saving money can invite bigger changes in life in terms of lifestyle, financial status, and even career.