15 SIMPLE TIPS ON HOW TO SAVE MONEY
By: Abdullah Idris
Tags: Money, Money Management, Saving Tips, Saving Money Ideas, How To Save Money

Saving money is quite profound for everyone because it guarantees financial stability against unforeseen circumstances that could arise at any time in a person’s life, and it can also ensure that you have a bright future.

However, saving is not an easy feat for anyone because it requires a great deal of adopting a healthy mindset that requires constant discipline and commitment.

Here are our expert tips on how you can start saving your money today.

1. Get rid of your debt: First things first, you need to start paying off your debt because they are a drain of your income, therefore, eradicating your potential to save. Start by paying off the largest (i.e. the one’s that attract the highest interest rates on your monthly debt balance) and move down the line so that you’re left with lighter and fewer monthly payments. Once you become debt-free, you can finally start saving from your income.

2. Create an emergency fund: It’s not news at all that you always need to save an emergency fund to protect yourself against a rainy day. Chances are you are going to need that second income before your life takes an unexpected turn which could be anything like being out of a job temporarily, having a new baby, getting hospitalised and much more. “Prevention is better than cure” right? Ensure your life, and you will never regret your decision.

3. Budget your expenses: Make it a habit to always account for your monthly purchases on the first day of every month. Include everything you need from groceries, restaurants, car maintenance (transportation), gym memberships, and summing them all up so you know how much you will spend from your income and how much is left of it. You could stash the rest of your income on an emergency fund or pay off your debt if you have any.

4. Save for your future: Don’t just spend less just because you want to save. You need to be saving with a purpose, be it for college, retirement, emergency fund, getting married or even a vacation. Whatever it is, just make sure it is of great benefit to you.

5. Save automatically: This is undoubtedly the most effective and easiest method to save, as it keeps your extra cash out of sight. This involves having a strategic process for saving your money at regular intervals which may be daily, weekly or monthly, depending on your revenue time-frame. You can set up your bank account or instruct your employer to transfer a designated amount from your income every time you get your paycheck into your savings or retirement account.

6. Unsubscribe from non-essentials: Don’t you think it’s about time you cancel all those subscriptions you don’t use on a day-to-day basis? There’s a high chance you’re probably paying for lots and lots of subscription services like Amazon Prime, Spotify, Hulu, Netflix, gym memberships, and whatnot. Cancel all of them except the ones that you really need and cannot live without.

The same goes for those marketing emails you get from your favourite stores. They’re quite sneaky into tricking their customers going into income splurges by providing you with all the latest discounts, big sales, Monday deals, this and that. And what do you know; you end up with lots of credit card bills to pay. So make sure you unsubscribe from those emails using a link provided by them. You can always visit the stores and buy from them later on whenever you need something.

7. Start saving for your retirement early on: Young workers are always in the best position to start saving for retirement. The earlier, the better because more sooner you start saving on your IRA, the greater the amount of compound interest you’ll be able to amass in your account over the years that build wealth.

8. Always save any tax refunds and windfalls: It’s a wise choice to withhold a tax refund or a windfall you received such as an inheritance, a work bonus or a contest you won. If you need them, you can decide to put a portion of it into your savings account instead of stashing all of it.

9. Save every coin you get: You’ll be surprised how much you’ll accumulate if you set aside at least 50 cents every day over one year. Who knows? You might be able to use it to buy that expensive dress you were eye-balling or use it as a down payment to buy that new car.

10. Pay your credit balances in full every month: Make sure you avoid falling into debt and paying interest rates by paying off your credit balance in full each month. This ensures you have access to using cashback rewards on your credit card purchases.

11. Do everything yourself…if you can: Whenever you have the latest household project like getting a new, cosy chair, a bench or painting the walls, see if you can do it yourself instead of shelling out your money to buy them or paying someone to do it for you. This could be as easy as getting the materials and making a Google search or watch YouTube videos to do them yourself, which will help you save tons of cash. If you’re stuck, you could ask your partner, your brother or a friend to help you out.

12. Set your bill payments on auto-pilot: The idea of paying your bills in full automatically, helps you to pay them on time, and of course, preventing all those late charges. There are other loan providers out there that give a small percentage of interest rate deduction as an incentive if you participate in auto-pay.

13. Use the Library: Why to buy a brand-new book over at Amazon when you can check in with your local library to see if you can borrow the same book. It’s a sure-fire way to get your favourite reading material without spending a dime. Most of them offer your favourite books in audio and digital copies for rent.

14. Create a list before grocery shopping: You will spend much less when you plan your meals ahead and go food shopping with a list than if you were to decide what to buy when you get to the grocery store or shopping mall. This will ensure you get what you need and avoid the unnecessary.

15. Plan gift-giving before the holidays: Give yourself some time, so you have the opportunity to look for the best sales and gifting the most thoughtful gifts that aren’t that expensive, ensuring you follow alongside the best spending limits.

Saving and budgeting are all about being intentional. It encourages you to formulate a plan to see how much you’re spending and how much you can save every month. Know this: It never really matters how much money you make but rather, how much you spend and save from the amount you’re earning.