Saving money is a common struggle for almost anyone and sometimes it can be difficult to get around to it. The easiest way to start is to get to know your financial habits and the way you use and distribute your money.
Spending money on things you like is surely a very exciting thing, but saving money is important. Why? Because unless you are extremely wealthy, you will need to plan your finances throughout your life. Whether it is rent, a student’s loan or a mortgage, you will have to face big expenses coming out of the same paycheck. So your safest bet is to plan accordingly and create the budget that best meets your needs.
Here are some great tips that will help you save money:
1- Create a budget
As previously mentioned, budgeting is the best tool for you to keep track of your finances. It will allow you to acknowledge all of your spending and adjust as necessary. It is like taking a photograph of your monthly income vs. expenses ratio. Visualizing it will make it a lot easier to understand how you spend your money and to detect any room for improvement.
2- Build an emergency fund
It is usually recommended to set aside at least 6 months’ worth of living expenses just in case an emergency occurred. This way, you avoid going into debt in case something should happen.
3- Use the 30-day rule
Whenever you want to make a large purchase, apply this rule: take note of the item you want and how much it costs. If after 30 days you still think about having the item, then go ahead and purchase it.
4- Lower your utility bills
Be as conservative as you can with your utilities. For example, simple things like unplugging any appliances you are not currently using or turning the tap off while you are brushing your teeth will lower your bill.
5- Use coupons
You can find coupons in apps like SnipSnap that will help you find deals and save money in your purchases.
6- Plan your groceries
Create a meal plan and buy accordingly. This way, you know exactly which items you need to buy and you will save a lot of money and time. It also helps not to go to the store when you are hungry, because you are more likely to spend money on things you wouldn’t really it otherwise.