In this article I will present 19 Awesome Tips To Save Money. Everyone can earn. Everyone focuses on earning. But hardly anyone pays attention on the skill of saving the money. Saving money is equally important as earning in your journey to personal finance and getting rich.
Saving money requires you to have all your expenses recorded, to have a budget and stick to the budget, find ways to cut down the expenses, have your retirement goals and plans figured out and decide on what is having more priority and investing on them.
In this article I will give you tips and strategies on how to save money.
The most important formula in saving money is to
save the money first and then spend
But, most of us do exactly the opposite we spend first and then whatever is left we try to save it.
All the financial experts advisable to at least save 10% of your earning every month. And by saving I mean reinvesting that in some medium that will give you return higher than the inflation rate.
Why you should save money?
There are five reasons why people save money. These are the major reasons.
1. Pay for children’s education and marriage
2. Have emergency fund in order to take care of any unexpected expenses like medical emergency or sudden job loss.
3. Have a retirement fund in order to take care of all the expenses after the retirement.
4. In order to buy house or any such big investments like land or car.
5. To invest in assets that will beat inflation and give higher return then what bank offers.
How can you save money? 19 Awesome Tips To Save Money
Saving money will require discipline from your end. You have to let go of the short term happiness in order for a long term gain.
- 1. The first step in saving money is to have a clear idea about all the income sources. I am a huge advocator of having alternate source of earning then your day job.
No one knows what’s waiting for us tomorrow. It’s better to have multiple source of income than to rely solely on one.
Nowadays it is so easy to earn passive income. If you need passive income ideas then you can visit my article on it. The link to the article is this https://themindpedia.com/create-passive-income-with-no-money/
- 2. Once you have the idea about all the income sources the next step is to note down all the expenses which are necessary for your day-to-day functioning. Thus, even before you plan your budget, have a clear idea about your spending habits.
Never go to your departmental Store without having the grocery list in your hand on mobile. And always stick to the list.
- 3. Now set a tight budget for yourself and try to stick with that budget. Don’t let in the temptation of buying everything which you see on internet or shopping mall.
There is a rule by the name 50/30/20.
This will suggest that you should spend 50% of your income in order to fp[ulfill the essential needs like rent, grocery and bills.
30% of your income should go to personal expenses like having dinners, buying clothes, watching movies, having the Netflix subscription and all such entertainments.
And the final 20% should go to savings and investments.
But I will suggest you if you to change this rule to 50/20/30.
So 50% to essential, 20% to entertainment and final 30% to savings.
If you find it hard to keep yourself under budget and are tempted to over spend, then develop the simple yet effective “Envelope Budget System”. In this system, you set aside a FIXED AMOUNT of cash every month on an envelope for spending.
You will spend in CASH ONLY and from THE ENVELOPE ONLY. Once the cash is gone, it’s gone.
You will wait for next month refill. This will aid in keeping you within your budget.
An addition to this method is you can divide your cash into envelopes for different purposes like Travel, Grocery, Medicine, Garments, Subscriptions etc.
Only Pay In Cash
- 4. Try to eat at home as much as possible. Carry tiffin from home. It will not only save money but will also keep you healthy.
But, if you do visit to restaurants then minimize your spending by skipping the non-essential items like alcoholic or non-alcoholic beverages.
You can also cut down your spending of 5 dollar coffee/latte or tea by making them at home.
- 5. Whenever you have the temptation of buying something just wait for few minutes. Let the impulse of instant buying go and then determine whether the product is necessary for you.
If is essential and necessary only then bind if not whatever was the price for that product keep aside that amount and save it.
Planning your expenses is very important in order to save money. This will help you realize what’s necessary and what’s useless and does help you make the right decision.
- 6. If necessary and it’s advisable to have a difference savings account then your expense account. Go to the bank any bank will work and create a different account.
Once you Get the salary, the first thing you do is that transfer the set amount as per your budget to the savings account and do not touch that saving account.
Try to take the advantage of technology and make the transfer automatic. So every month instruct your bank to transfer the fixed amount of money from your salary account to your savings account this way you will not forget to transfer the money and you will not be tempted to spend it without saving.
- 7. At the end of every month always evaluate your shopping and spending expenses and find ways in order to minimize the expenses.
There is a method called as the 30 days rule. It states that whenever you want to buy something that costs a lot of money always write it down what you want and how much it cost. After that wait for at least 30 days before you purchase. Even after 30 days if you feel that the thing was necessary and it’s important for your life then buy it.
You can change this 30-day rule to 15-day rule or 7-day rule or at least 1-hour rule. But never indulge in instant buying.
- 8. Home is not complete without the family members and you cannot develop the habit of saving on your own. So include your family members into your saving habits and let them advise you, guide you as you do to them.
Discuss and limit your family spending also. Make them realize the importance of savings, specially your children and wife.
- 9. Whenever you buy something always visit different websites or different stores and see the price of the product and compare it.
Never buy a product from the first website or shop you visit.
You will be surprised to find out how much money you can save by simply following this strategy.
Some places where you can implement a strategy are:
- Telecom operator plans
- Car or bike
- Clothes & shoes and jewelers
- Laundry and membership plans
- Mobile, laptop or any such gadgets
- 10. Remember that it is cheaper to maintain a car for home then to buy a new one. So spend some amount on regular maintenance of such assets.
Trying to save money by not repairing your assets will ultimately e harm you more than do good.
- 11. Always and I repeat always invest in quality while buying something important.
Many a time the cloths or gadgets which you are buying might seem costly at first but if it comes from a branded well known company that invest its resource in R&D while preparing the product then it will result in longevity of that product.
- 12. So you want to buy something but it is not urgent then kindly buy it during sales period.
Every country will have a certain period when merchants offer products at a discounted rate. You know your country so kindly wait for those period specially the Independence Day, Black Friday Day, Valentine’s Day, New year and so on.
- 13. Nowadays most of us do online shopping and this online portals offer coupons to certain influences. Those influences and websites posts such coupons.
So type the name of the product and add coupon after it while searching on Google or any such platform.
Don’t get surprised if you’re safe more than 10% on such products simply by adding this step before buying.
- 14. When you go for offline shopping always ask for discount. Don’t feel shame to ask for discount. If the vendor cannot provide you with a discount that you think is right then just move on to the next shop.
- 15. Ok you have a car and you want to go to your office with it. I understand that but if your public transportation is good then kindly take public transportation.
Public transportation is always cheaper than by taking your own private car. This way you will not only be saving money on gas and wear and tear of your car but will also help save our planet by reducing the carbon emission.
- 16. This will be a super helpful tip if you are more prone to online shopping. Just go to all the online portal where you have submitted your credit card or debit card and delete them from those portals.
So next time you are on my mind to buy impulsively you will be forced to take out your credit card or debit card from your wallet and then type the large number and code in order to make the purchase.
This resistance effectively stop you from making any impulse purchase which is not urgent or essential for you.
I have done this myself and I can’t express you how magically it works.
- 17. Cancel all the automatic subscriptions and membership which you do not use like Netflix, Spotify, Amazon Prime, gym to which you don’t go.
YouTube is a great place where you will find content from every category that you can think of. There are educational videos as well as entertainment videos. So replace your paid platform subscriptions by watching videos on YouTube.
- 18. There are many other small daily hacks that you can do in order to save money like replacing all your lighting system at home and office with LED. This energy efficient LED will reduce your monthly bill.
- 19. Pay all your bills within time so that you do not have to pay late fees. Specially the credit card if you have one. If needed install any free reminder app on your mobile and set reminder for those bills one day before the last day to pay.
The best way you can save money is by investing in yourself. Let me explain suppose you need to do something and require someone specialized in that skill.
In place of paying the person for his skill why don’t you invest that amount in learning that skill.
In this way you will not only be able to perform the work but will also have learned a skill that may help you earn more money.
Obviously this will not work out if you need to perform a task in an urgent basis.
But if it’s not an urgent requirement then I will suggest you apply this technique.
This website https://themindpedia.com/ was created by me with this objective in mind.
I write my articles, I customize my website, I do on page and off page SEO of my website, I do proofreading of my articles and everything that is required to run a website efficiently.
I am not saying I am perfect I make mistakes, but I am learning and that’s important.
Saving money is a habit and it will definitely take time to build but it is a habit that can be mastered. The first thing that needs to be evaluated is the difference between wants and needs.
Needs of things which are essential for our day to day a working. Examples of needs our foods, cloth, shelter, health care, Education and transportation.
Wants on the other hand are the extra things which is present in our life it’s good but it’s not essential. Examples of needs are OTT subscriptions like Netflix, the latest smartphone that was launched, the big car that you don’t need, the jewelry that you don’t care but you want to have in order to impress others, movies, fast foods and all search entertainment products.
One learning the tips and tricks of saving money please understand that there will be room for mistake. No One is perfect we will make blunders while dealing with your money. We will be tempted to spend money on things that we don’t need.
So don’t be Hard on yourself learn from the mistakes and do not repeat the one which I have done.
