You may not have control over the economy but you have control over your spending habits. Here are some money-saving tips you may find effective.
1. Track your Spending
Tracking your spending habits enables you to have an idea of what you mostly spend your money on. Note every penny you earn and account for how each is used from the beginning of the month to the end of the third week. After this period, you shall have noticed where you spend more thus you can make necessary financial changes.
2. Do Away with Your Debts
Once you are in a debt, you spend a lot of money on interests while servicing them on monthly basis. It is therefore a better option to eliminate the debts first then save the interest, which you could have paid, in your savings.
3. Pay Yourself First
Once you have a workable savings plan, ensure you make deposits to your savings account first after receiving your paycheck. Doing so will avoid any incoming financial interference to your savings. You have an added advantage with this if you have a locked savings plan.
4. Identify Your Needs and Wants
Spending money on what you need with less focus on what you want is an effective mechanism of saving money. Eliminate expensive wants which you can survive without from your budget.
5. Lower Your Energy Bill
Ensure your electrical appliances are turned off whenever they are not in use. You can also switch off the lights in your extra rooms which are hardly used. Instead of using radiators, you can use heavy warm clothing to stay comfortable. You can also replace your bulbs with energy-efficient ones to lower your energy bill.
6. Ignore that You have Cleared Your Loan Repayment
Once you are done repaying your loan, you can continue with the same payment procedure, only that this time you will be making payments to your savings. You have been surviving for months without using the extra cash and you can survive longer.
7. Carry Packed Lunch from Home
If you spend $8 buying lunch at work every day, you can save it by carrying your packed lunch. In five days, you will save $40. In one year, your lunch savings will be approximately $2080. Get the sense?
8. Set an Achievable Savings Goal
Set a savings goal that you can achieve without straining financially. Unrealistic money saving goals may make you lose hope before you even begin.
9. Reduce Your Take-out Orders
Reduce the rate at which you order takes-outs. For instance, ordering $15 pizza three times a week results in spending $45. In a year, you shall have spent over $2250. Cut down on this budget and save the rest.
10. Visualize Your Savings Goal
Visualizing the amount of saving you want to achieve after your stipulated time will give you the morale to carry on. You can set a weekly, monthly or yearly savings goal. Having the expected result on your mind will maintain your focus.