Everyone is constantly taking efforts to save some money. Whether it is by avoiding a $6 chicken meal at the KFC or by deciding to walk to a nearby place instead of taking a taxi, we all try to save money. However, with everything getting expensive and the rising costs of living, saving money is often a challenge. Many times you might even have to use your savings to make ends meet. But, if you plan meticulously and save accordingly, saving a good deal of money may not be that hard. Read through to know how to save money.
1. Try consolidate or pay off your debts
When you are trying to save but you have debts that you need to pay off, a major portion of the money you make goes towards the interests of the debts. To start saving, make sure you sum up all your debts and clear it off so that you can start saving. But if you fail to have the funds to pay all of it at once, consider consolidating all your debts in one. That will ensure you do not pay different rates to different people, and then start paying. This would ensure you have a set amount set aside for the debts and you have the remaining to work out a saving figure.
2. Set Saving Targets
The human mind does things better with targets. Give yourself targets that you can visualize as the reason you are saving for. It may be a car, a bike or a house 10 years down the line. Follow the timeline and the targets decided so that you save enough at the end of the timeline. This way you will know how much you need to save every month to achieve that set target or goal.
3. Be Sure to Pay Yourself
Consider setting up an auto-debit from your checking to your savings account every time you get your pay. It can be an amount as small as $50 or it can be a high $500 debit, be sure that some of your money is always stocked up into your savings account for a rainy day. And when you do that ensure that you don’t cheat yourself by using up your fantasies. Try managing until your next payday with the money in hand. Exercise restraint and do not fall into the temptation of using your savings unless there is an emergency.
4. Make Some Home Improvements
But that will cost you money. Isn’t it? However, if you wish to save big, you can try doing some home improvements. Ask your utility company to conduct an energy audit and make sure your home and all the home appliances are ENERGY STAR rated. That would mean your home is energy efficient which means you can save big on the utility bills.
5. Create a Separate Savings Account
Often when you have just one account to which your pay gets credited, you lose track of the spending and that may lead you to use your savings as well. Make sure you create a separate account where you put in all your savings. Also, ensure that the savings account you choose help you accrue some interest on your deposits as well. Google and look for products that can help you get higher interest returns and choose the one that gives you the best returns and benefits.
6. Keep a Check on Everyday Spending
This is obviously the basic and the most important of all. Look at your everyday expenses and try to save a little wherever you can. For instance, if you spend on food daily, consider carrying your lunch from home. If you take a taxi to commute to your office a few kilometres away, consider using public transport. There are many other things that you spend on, daily which you can easily avoid or control. Something like cutting down on cigarettes will not only be good for your health but for your savings account balances too.
If you see saving money is not rocket science, it is all about being a little disciplined about your finances and inculcating the right spending habits. With the right attitude and a little bit of planning with these handy tips, you will surely be able to save a good amount of money for those desperate situations and needy days.