Saving money is not easy. While traditional money-saving methods teach you easy tricks like put all your loose change in a jar or try to set aside an amount each month for saving, these methods either don’t work or you will just be able to save a small amount.
The trick to saving is not putting aside some money and struggling to forget about them, is about modifying your buying habits and controlling your impulses. These 5 tips for saving money will help you do that.
1. Write Down All Your Expenses
This can be either your shame list or a reason to be proud depending on your situation. This is the first thing you need to do because it will give you a very clear picture of your expenses and the areas you need to improve.
Plus, when you know you will need to write down every little thing you by, you will most likely think twice before you jump to unnecessary expenses.
Analyze all the data after a month and see where you go wrong and things you can do to improve your spending habits.
2. Don’t Go Out with Credit Cards or Too Much Cash
The purpose of this is to make sure that even if you want to spend money, you won’t be able to. Keep your credit and debit cards at home and even if you will see an expensive item you “absolutely must have” you won’t be able to pay for it.
Credit cards make it easy for you to buy things without thinking too much about the consequences. Do take the cash you need for small purchases but not too much.
3. Have Clear Financial Goals
Don’t just say: “I want to save some money”. This is too ambiguous and you might think you’ve succeeded if you saved $1,000 or if you saved $50. Have a crystal-clear picture of your income and total expenses and make a realistic plan.
Also keep in mind what you need the saved money for and how much you need to save each month to reach that goal. Don’t choose unrealistic goals because you won’t be able to achieve them and you might stop trying altogether.
4. Don’t Compare Yourself with Your Friends
Yes, your neighbors just renovated their kitchen but what has that to do with you? Don’t buy things you don’t need just to be aligned with what everyone else does. Figure out what is important to you and only spend your money on that. Once you’re as rich as Bill Gates, you’ll be able to spend freely.
A great way to save money is to focus your attention on the things you need and disregard what other people spend their money on.
5. Save Money on Food
While you shouldn’t try starving, there are a few tricks that will help you reduce your food expenses. The first is to make your food at home. I know, I don’t like to cook either but it will cost significantly less than if you eat out all the time.
Make a groceries list every time you go shopping and stick to it. Buy and plan the meals for a whole week because buying and cooking in bulk will save you money. You can choose to eat out sometimes but bring a coupon.
Whether your problem is a low income or impulsive buying, there is a solution that will help you save money. The first thing you need to do is to find out
what your problem is and only then try to find a solution.
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