We all learn most things in life sooner or later. From the simplest to the challenging ones, plenty of resources are available to know what matters. However, some things need to be learned for our financial well-being in the future, no matter who, what, or where. And one such thing is Saving.
With the rising cost of living owing to the high price of staples, branded staples, fuel and inflation eating into our savings/investments, it has become important to learn how to save money. This blog deals with some easily doable money saving tips.
14 Simple Ways to Save Money
Make a Budget:
It will be hard initially to stick to a budget, but making one is an exercise that even nations worldwide do. So, make sure to create a budget, as it is one of the most crucial aspects of how to save money. It is easy to make a budget for oneself. Assess your income and expenses (category and frequency-wise), keep a track of expenses on essential, non-essential, and mandatory expenses, set financial goals, allocate funds from essential items to savings and pay off debt. Plan to save a certain percentage and spend only the remaining, though not fully, unless required. Review your budget and adjust accordingly.
Prioritise Savings:
Make ‘savings’ a part of your budget. So, once you have your expenses and income sorted, by minimizing the expenses on every item in some way, you will definitely end up with savings. This way, you limit overspending, while starting to save. Make sure you have accurately assessed your regular, recurring expenses and the occasional ones. Aim to increase savings gradually.
Set Savings Goals:
Another way to save money is by setting savings goals. This means, you decide what you want to save for, over the short-term (1-3 years) or long-term (3+ years). Start putting aside that much money regularly. You will feel good about it and also have a goal to look forward to.
Participate in Loyalty Programs:
Stores, restaurants, and retailers often reward their loyal customers with loyalty programs or, rewards programs, or a points program too. Customer loyalty cards and programs enable you to save money on essentials such as groceries and fuel. Generally, they offer a free coffee/lunch/merchandise after spending a particular amount on purchases or your 5th or 10th purchase. Make sure you do not give in to lucrative offers always just for that freebie. It will negate the very purpose of the program.
Use Cash-back Credit Cards:
Did you know credit cards can help you save money? Yes, cash-back credit cards allow you to do just that. These cards pay you a certain amount of cash on any purchase at any commercial establishment. Some are specific for certain purchases, such as dining, fuel, groceries, and travel. Use the card offering the maximum benefit. Read the T&C correctly, and do not spend more than what is required to pay for making purchases on credit.
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Continue Subscriptions and Memberships Wisely:
Almost every product or service has a subscription option. An effortless way to save money is to unsubscribe from services you do not use regularly. Assess the need for memberships of clubs, gyms, and other programs and then have them canceled or continued. There are plenty of alternatives available nowadays and they are easily accessible too.
Grocery Shopping and Meal Planning:
Do not underestimate the power of grocery shopping and meal planning in helping you save money. The trick lies in buying groceries in bulk, which are at wholesale prices. Buy as per your weekly meal plans to pick only the most essential items. Make a list of items to buy if you have to and pick items on sale that have not expired. This is a sure shot option from among the options on how to save money in everyday life.
Use Public Transport or Carpool:
Use public transport whenever possible for short distances, save on parking, and avoid being caught in traffic. If that is not possible, use a carpool for contacts whose workplaces are on the same route as yours. This way, you contribute less to pollution and also the traffic.
Enjoy the Joys of DIY:
You can do so many things at home instead of opting for the regular, expensive commercial ways. Try doing a pedicure at home, making a sandwich using ingredients from the supermarket instead of ordering from expensive cafes, and brewing a coffee using a fine coffee brand. Aren’t these simple ways to save money?
Avoid Late Fees:
With hectic schedules making our lives busy, one can miss important payments such as utility bills. They can then attract late fees, resulting in shelling out a little more than anticipated. Always pay your credit card bills in full. You can opt for the Electronic Clearing System (ECS) payment system. This ensures timely payment and saves time too.
Change Bank Accounts:
Other than loans and advances, banks make money from the various fees they levy for providing services. They also have a minimum balance requirement which can become difficult to maintain and may be subject to fines. If the charges are too high and frequent, negotiate with your bank or opt for banks offering a no-fee account.
Delay Purchases:
So many tempting products are being launched across all categories. From toiletries, branded foods, and apparel to phones, cars, and real estate, each day there is something or the other to buy. If you want to buy that newly launched gadget or visit a new retail store, remind yourself to stop thinking about it for a few days, for a week, and then stretch it up to a month. You may not want it as badly, and thus, you will save yourself a decent amount.
Check for Deals Online/Sales Announcements:
If at all it's irresistible, check out deals online before making the purchase or look for other online retailers offering better deals on branded products. Also, retailers have End of Season sales if it is the end of a particular season. Buying at a sale could be a great option instead of splurging it when you see it.
Miscellaneous:
There are quite a few things that can happen here.
- Minimize spending on eating out.
- Continue your passion for reading by joining a library instead of buying books.
- Save electricity and thus, on the bills too.
- ‘Retail therapy’ is not the solution on days when you feel low.
- Do not do what others are doing just to Keep Up with the Joneses.
- Avoid expensive gifting.
- Host potluck parties. Have the same fun on a decent budget.
Conclusion
While all of us are busy making money, it is equally important to save money, too. Whether you use the money to achieve short- or long-term goals, emergencies,or retirement security, inculcating the habit is very important.
We have shared some easy ways to save money. This will help you figure out the ways that work best for you. The real challenge is picking your saving method and sticking to it.
