Money, money, money, we all want it, we all need it, we can never have enough. As the saying goes: ‘Money cannot buy you happiness, but it can buy you a sports car, and I’ve never seen a sad person driving a sports car.’
It doesn’t matter how hard we try to save money. It seems for most people, the concept of saving money doesn’t work.
There are two options:
- You can either get another source of income like a second or third job
- Or start a business with a rapid return on investment
Unfortunately, none of these is very pleasing or possible for most people. Or you can opt to save money by following some of our tips in this article.
№ 1. Stop impulse buying
Probably a definite way to save money is to stop impulsive spending. Buying items without considering whether it’s an essential need has caused many people to go into debt.
Before purchasing an item, you should ask yourself whether you need it.
In addition, these are ways you can stop impulse buying:
- Make a list of items needed and buy only those.
- Instead of using a debit or credit card, carry only the required amount of cash needed for the purchase.
- Don’t go shopping if you are emotional, as this might influence your judgment.
- Cancel email subscriptions to online shopping apps to avoid temptation.
You will find in most instances that you don’t need the item at the time and that you can carry on with life with what you have. Once you master the self-discipline to avoid impulsive buying, you will notice a considerable saving.
№ 2. Save on utilities
In the US, the average household spends over $2000 on utilities per annum. Utilities include gas, water, fuel, electricity, internet, and cable – it encompasses everything you need to sustain your home.
For this reason, we have listed ways you can reduce your utility expenditure.
№ 3. Reduce credit card spending
Credit card debt in the US has reached an all-time high of $930 billion. The convenience of credit cards has made the debt crisis even worse.
Instead of using credit cards for emergencies, most people use them for everyday expenses, thereby increasing their debt.
To reduce credit card debt, you can try the following:
- Pay off your smallest debts first.
- Do not use the new credit to buy again.
- Increase your monthly repayments with the savings you garnered from other expenditures, this way shortening your repayment period.
- Consolidate debt by moving all credit to a lower-rate credit card and repaying only one loan at lower interest rates.
Unfortunately, the only way to get out of the debt is to start repaying it and not using the available credit again.
№ 4. Cut down on entertainment
Another way to save money is by cutting down on your entertainment costs. Entertainment includes dining out, movies, visiting pubs and bars, and other recreational activities. The costs are higher if you have a large family or if you socialize with friends frequently.
Some tips you can use:
- Dine out less; if you can’t cook or have a tight schedule, opt for healthy ready-made meals.
- If you opt to dine out, choose fewer expensive places to eat and stick to your budget.
- Instead of going out for a movie, do a home movie night and make it fun for the whole family.
- Reduce frequenting bars and pubs.
№ 5. Cut down on transport
Transportation costs include vehicle finance and maintenance, vehicle insurance, and fuel expenditures.
The expense can increase depending on your distance from home to work.
There are ways you can cut down on transport costs if you follow these tips:
- Use public transport instead of your vehicle.
- Carpool with co-workers to save on maintenance and fuel costs.
- Compare insurance quotes to save on your monthly premium.
- Ensure your car’s maintenance is done on time to avoid unnecessary breakdown costs.
Vehicles are expensive assets, and they depreciate. It’s therefore in your own best interest to consider these saving tips.
Saving money is not an easy task, but you will have extra cash if you apply discipline and follow these tips. Not everyone’s goal is to reduce their debt. Some people want to go on a much-needed holiday or purchase a nice car or home. It doesn’t matter what you intend to use the savings for, as long as you try to cut down on unnecessary expenditure.