Are you living beyond your means? Are you earning well but still don’t seem to be saving enough. Have you ever thought of how to save most of the money you earn? Adopt the following saving habits and you’ll be laughing all the way to the bank in no time.
Everyone looks for tips on saving money! Some choose to take financial advice from family and peers. You are sure to find a number of articles in newspapers, magazines, and websites offering help to save your money. However, you can follow these quick, helpful money saving tips and give your finances that much needed boost.
* Live on a budget: When you record your daily expenses, add them up and find that the total exceeds the amount you earn, you will realize that it’s time to cut down on your spending. Once you have come up with a realistic budget, avoid the temptation to splurge when you’re out shopping. Cutting back on your day-to-day expenses and resisting temptation makes it much easier for you to save.
* Ration your funds: Pull out a fixed amount at the start of each week and ensure you don’t swipe your debit or credit card anywhere during the week. Living off this limited rationed money will ensure you know exactly what you’re spending. If your money runs out too soon, you’ll need to watch how you spend it the next week because you will start the next week with that much less!
* Avoid credit cards: Most of us fall prey to the lure of plastic money. The convenience of credit cards is hard to resist but if you want to save, pay cash whenever possible. You need to watch out while using your credit cards, especially the fees associated with owning a card. However, if you can’t do without a credit card, find a card that does not charge high annual fees and comes with cash saving benefits. PrePaid credit cards are another great way to assist in controlling spending and can be reloaded at any time. You can use them just like a checking account and they will help you start building credit.
* Avoid expensive habits: Is your daily lunch expense eating into your wallet? Does your monthly fuel expense burn a hole in your pocket? Not just lunch and fuel expenses, even your mobile bills, magazine subscriptions, and a number of other expenses can cost you dearly. You can carry lunch from home, switch to fuel saving options like car pooling or using public transport, and check your phone tariffs to ensure that your plan suits your needs. Prune your bills accordingly.
* Force yourself to save: Sign up for a systematic investment plan or some form of monthly investment that is deducted directly from your bank account on the 1st of the month. That way, you’ll never have access to those funds and won’t be able to fritter it away on something frivolous!
How have you overcome the urge to spend? If you have more money saving tips you’d like to share, do so right here! Did you need a crisis to make you realize it was time to start saving? What was your wake up call?