Are you one of those people who cannot control their desire to splurge their money when they see something new in their favorite store? Or, are you among those who would order things from the online store with their credit card and regret them later?
If you are among those people, this list article will have something for you, and even if you are not, we are sure you would get a few useful tips because saving money is very important for everyone.
So why do we need to save money?
Well, As the famous saying goes, ‘money saved is money earned.’ We all know, saving money is equivalent to a safer future! Money provides you with security in your life.
If there is an emergency of any sort and you have cash set aside, then you have something to fall back upon. Money also gives you the freedom to take risks and try new ventures such as start-ups and businesses.
In short, saving money is essential for a stable life. Therefore, here are a few tips that would help you save money and be a little economical with your lifestyle.
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1. Set an Aim
Our goals are the guiding forces in our lives. People are more likely to achieve something if they have a set plan in their mind to guide them, and they are determined to achieve it.
So, what you can do is set a goal to save money to buy something. You can save money by purchasing a new mobile or a laptop. You can even start saving for a vacation or a getaway. Once you achieve your goal, set another dream, and start saving for it.
It is going to teach a healthy habit of saving money into your lifestyle. Also, you can even set up a long term aim like buying a house or a car. To achieve that, you need to save money for a longer duration of time, and you need to keep yourself motivated to do the same!
2. Judicious Spending of Money
Before you decide how much money you need to save, you need to analyze the places you are spending your coins on! One important thing you can do is to write everything down! Segregate essential items from the non-essential ones!
The critical places you need to spend your money include water and electricity bills, groceries, rent, loans, etc. No-essential items include your unplanned dinners, movie tickets, dispensable shopping, etc.
Once you have segregated them both, you will realize who much unnecessary money you are spending. Writing your expenses down will help you keep your costs in check, and then you can make wiser decisions about your money!
3. Follow the 50-30-20 Rule
One unique thing you can do to save your money is to follow the 50-30-20 rule. The practice is a strategic budgeting technique that might aid you in your money management.
It is a straightforward and sustainable way and has proved to be quite useful, as well. All you need to do is divide your monthly after-tax income into three sections: 50% for your money goes to your needs (basically your essentials), 30% goes to your wants (your non-essentials), 20% for savings, or paying off debt.
Dividing your money into these categories will help you closely monitor your money and help you with judicial spending!
4. Download an App to Closely Monitor Your Spending
If you think that you are unable to monitor your expenses by yourself, there are plenty of apps that can aid you in this work. You can link your saving accounts and credit cards to these apps, and they will help you keep a watch on how much money you spend and where you spend it.
These apps tell you about your recent account activity, including spending, savings, and subscriptions. These apps will help you if you tend to overspend on some items.
5. Try Following the 24-Hour Rule
People tend to spend a lot of money on impulsive decisions that they regret later. It usually happens when they are ordering something online. When they see something cute, they are instantly attracted to it, and they end up calling it.
But in reality, did they need that cute decorative pillow that they just ordered? Therefore, they ended up wasting their money on something that they didn’t even need. This is where the 24-hour rule comes in! What people can do is, if you think you want something, add it to your cart and let it stay there for 24 hours.
When those 24 hours are over, see again if you’re going to order it. The chances are that in those 24 hours, you realized that you actually didn’t need that item, and you were just making an impulsive decision. This 24-hour rule will help you make wiser decisions and help you save those bucks!
6. Save the Extra Money You Get
Got an incentive from your boss or found some extra cash in your drawer? Don’t spend that money, instead save it! People tend to spend the money on random purchases that they were not expecting to get. What they should do is to save that money for the future and spend it when they need something.
7. Choose a Savings-Buddy
Saving money is not simple, especially when you see people around you spending money on the most random things. That s why we suggest having a savings buddy. A savings buddy could be anyone from your family member to your co-worker.
When you have someone sailing in the same boat, you find it easier to achieve that goal. You can share your progress or problems with that person and pair up with someone like that to help keep you motivated.
8. Try to Make Your Savings Automatic
Nowadays, most banks offer automated transfers between your checking and savings account. It will help you save money as you would not have to manually keep it somewhere, which generally reduces the temptation to spend the money.
These were some of the tips that we have that might help you save money or the best ways to celebrate a birthday party would be virtual escape rooms.
As New Year is close, now is an excellent time to make the new year resolution of not being spendthrift. If you do make this resolution, please follow it throughout the year and not give up on the idea in mid-Feb!