Unveil the money saving tips to achieve financial freedom
TABLE OF CONTENT
Do you ever feel like it’s impossible to find effective ways to save money? Although you tried to spend less, it didn’t work.
The good news is there are different straightforward ways to save money into your budget. Here are 10 tips for saving money to help you tweak your spending and to save money from now on.
The truth is, you don’t need a magic or complex method before getting started with saving money.
What is the best way to save money?
Here are 10 tips for saving money. Depending on your personal budget and demand, you can pick one of the best ways to save money.
Unveil the money saving tips to achieve financial freedom
You’ll only start saving money when you get to know good money habits and let your future needs be more important than your current ones.
Saving money is all about being intentional and persistent. It helps you schedule a plan, so you can see where your money is going and find out how much you can actually save each month.
Remember this: It doesn’t matter how much money you make. What matters is how you spend and save the money you make.
1. Learn to budget and understand your finances
This is the most important tip for saving money: Learn to budget and understand your finances. If you’re in control of your budget, you’re in control of your finances. But how to start?
Before saving money, you need to come to grips with your cash flow. This means you understand your incoming and outgoing revenue streams, including any debt repayments, monthly bills and savings contributions.
Here’s how to create a budget so you can start saving fast:
Track all of your finances over 30 days (your income and expenditures)
Compare your monthly income to your monthly expenditures to assess how much you’re currently managing to save, or how much you’re spending.
Divide your expenditures into fixed and variable costs.
Spot any variable costs cutting back on to increase how much you can put towards your savings goals.
Assess your progress regularly and optimize your budgets if necessary.
2. Set savings goals
This means you need to visualize what you will save for. If you need motivation, set saving targets with a specific deadline to make it easier to save.
Do you want to buy a house in 3 years with 20% of your payment? Now you have a target and know what you will need to save constantly each month to reach your goal.
3. Get out of debt
Before you start saving, you need to pay off any balances on your existing debts. The longer you delay paying off a debt, the bigger it becomes.
If you postpone paying your debts, the accumulating interest rate can wipe out any money you manage to save up.
To get out of debt fast, consider using a budgeting method 50/30/20 budget by US senator Elizabeth Warren. It works as follows:
Use 50% of your income on your needs, such as your fixed costs.
Use 30% of your income on your wants, such as your variable costs such as dining out and subscription services.
Save 20% of your income. So, if you make €2500 a month after tax, this means you can put aside €500 a month.
4. Reduce your grocery bills
To reduce your grocery bills, you should:
Plan ahead your meals weekly. Stick to your shopping list, so you only buy what you need.
Buy on special events, promotions and look for cheaper home or own brands.
Save by buying fruit and vegetables in season, shop at your local fresh markets or grocers.
Eat less meat which can be expensive, so try to buy when marked down at the end of day.
Buy staples in bulk (rice, oats, flour) when marked down or buy bulk amounts with your neighbors or friends.
Grow it by yourself: You can plant some vegetables in your garden.
5. Reduce energy costs and bills
Start with some simple things like taking shorter showers, fixing leaky pipes, washing your clothes in cold tap water, and installing LED light bulbs.
Turn off all electrical appliances when not in use. These include gaming consoles, electric devices or any appliance with a standby mode.
If your monthly cell phone bill competes with your monthly grocery budget, it’s time to find ways to cut back.
Your electric bills and gas bills contribute to a considerable part of your monthly fixed costs, so if you can consider:
Changing your energy provider by making sure you’re on the cheapest tariffs on the market.
Swapping your light bulbs for LED light bulbs to save 75–85% more efficient energy and last 15–25 times longer than traditional bulbs.
6. Cancel automatic subscriptions and memberships
If you’re paying for multiple subscriptions like Netflix, Spotify, gym memberships or subscription boxes, it’s time to consider canceling any subscriptions you don’t use regularly.
And make sure that you turn off auto-renew when you purchase. You can think about sharing memberships with some family or friends. That way, everyone wins and saves.
Basically, few of us seldom fully use our subscription services to their fullest. So, it’s more cost-effective to cancel any unused subscriptions, rather than hold out for a time.
7. Save money automatically via bank account
If you have a fixed monthly income, think of automating your savings contributions each month. This means setting up an automated transfer from your daily spending account into your savings account.
By automating your savings, you will reduce your chance of using these funds to cover your daily expenses.
8. Pack lunch or eat at home
For an office staff, buying lunch a few times a week seems harmless at the moment, but you can save a lot just by packing your lunch.
You can buy a solid week’s worth of groceries for the same price as two dinner meals out. Instead, prepare your food at home and watch your savings pile up each month.
9. Try to fix things yourself
This is an interesting way to make considerable savings. You can easily learn on the internet and find out how to fix pretty much anything online.
From leaky pipes to the zipper on your jeans, it’s always more cost-efficient to fix these things yourself rather than have someone else fix, or replace them entirely.
10. Put a spending limit on your card
You should set a limit to how much you spend on your credit or debit cards. This stops you from overspending and encourages you to reassess your daily expenditures in advance.
Don't indulge your emotions too much or you'll have pressure on your credit card by the end of the month.
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Note: The content in this article is for general informative purposes only. You should conduct your own research or ask for specialist advice before making any financial decisions. All information in this article is current as of the date of publication, and DNBC Financial Group reserves the right to modify, add, or remove any information. We don’t provide any express or implied representations, warranties, or guarantees regarding the accuracy, completeness, or currency of the content within this publication.
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