There is no doubt that saving money is important. The sooner you start to save money, the more you can save.
In this post we are giving 15 tips and tricks to help you save money. Use these money-saving tips in your day-to-day life.
- Have a separate account for your savings
The very first tip that will enable you to save more money is to have a dedicated account for your savings. If you only have one account for both your expenses and savings, it would be difficult to track your progress. This also promotes a clearer visibility of how close you are to your desired outcome.
- Automate your savings
The easiest and most effective way to save is to do it automatically. Transfer a fixed amount from your paycheck to your other savings account. Follow the golden rule of Income – Savings = Expenses.
Another great reason why you need to automate your savings is it prevents you from spending your money elsewhere.
- Use credit card wisely
Credit card debts are common and this often lead one to not have any savings at all. Make sure that you know how to use your credit card wisely. Here are some dos and don’ts when it comes to credit card usage:
- Do remember your credit limit, due date, and statement date at all times. This will help you make planned purchases and avoid delays for making payments.
- Do pay off your bills in full to avoid fees.
- Don’t go beyond your credit limit. Determine the safe percentage that you are able to pay especially for installment items.
- Follow the 30-day rule
Whenever you feel the urge to splurge yourself, apply the 30-day rule. The 30-day rule states that you write what you want on a paper and keep that list in the next 30 days. If after 30 days you still like to buy the item, the do it. Most will discover that after 30 days they don’t want to buy the item anymore.
Mastering the 30-day rule will hep you save money and make better shopping decisions.
- Write a list before you go shopping
Making a list before you go shopping will help you think ahead about your purchases. You have ample time to look at your cabinet and see what items you need.
With a list, you can save yourself from stress. All you have to do is go to the store, refer to your list, and buy. This move also saves you from making impulsive purchases that may ruin your grocery budget.
- Reduce unnecessary subscriptions
Take a look at your current monthly expenses and look for subscriptions or memberships that you rarely use. Ruthlessly eliminate what you don’t use and instead dedicate the amount you pay monthly as additional savings.
- Eliminate vices
Vices like smoking or drinking alcohol do not only affect your health but also your wealth. A pack of cigarette today costs at most Php 100. Multiply it by 4 packs a week and you get Php 400 a month money wasted. Nowadays, keeping a healthy body is super important. Avoid the bad a vices and use the money instead for your savings.
- Join saving challenges
A good way you can force yourself to save is through saving challenges. There are a number of saving challenges you can choose from like the 52 Week Money Challenge, No Spend Month, or the Invisible Money Challenge. The key is to find out a saving challenge that is doable for your current money situation.
Level up with the money challenge by having an accountability partner that can make it more fun and will help yu achieve your savings goals easier.
- Cut back on energy consumption
A sudden decrease in your monthly bills can help you save more money. First on the list is to cut back on your energy consumption. You can do this by making sure you follow below tips:
- Unplug electronics not in use.
- Spend less time on watching TV or being on the computer.
- Turn-off the lights especially at night time
- Find appliances that have energy-saving features.
- Focus in paying your debt
It’s important to manage your debt should your aim this year is to save more money. Paying off your debt will enable you to have more room for savings.
There are two types of debt payment methods you can try:
- Avalanche Method – In this method, you pay extra money toward the one debt with the highest interest rate.
- Snowball Method – In this method, you pay the smallest debt amount first and work your way up, regardless of interest rate.
Try to list down your debts from loans to credit card debts. Now that you have a list together with the amount, choose which debt payment method you will follow.
As soon as you crossed something on your list, move the money to your savings.
- Track your expenses
Keep track of all your expenses, no matter how small or big they may be. This way, you can analyze exactly where you can temporarily cut down so you can have more money to save. Recording your expenses will also enable you to easily figure out your spending habits.
- Do comparison shopping on big purchases
Always compare prices for big purchases like furniture, appliance, or even car. Comparing prices helps to find better deals on the same products or find similar products at better prices. Check on different stores that cater the same item you like at a lower price point without sacrificing the quality.
- Take advantages of your birth month freebies
There are plenty of stores offering freebies, coupons and useful discounts on actual birthday and even all-month long! All you have to do is sign up their mailing list. This could be a good way you enjoy your special day and save money at the same time.
- Sell unused item
With more time in the house due to the current situation, it’s worth doing an audit of your unused items. You can do a declutter and and use the extra money you can towards your savings goal.
- Live frugally
It’s all about keeping a frugal lifestyle. Make sure that your expenses are below than your actual earnings. Be intentional not just with what you buy but every financial decision you have. Ask yourself if it is a need or just a want.