Saving money never demands you to end your desires. All it takes is spending thoughtfully. The most difficult step towards saving money is remaining consistent with the practices to witness a significant difference over time. Whether it is having a positive weight loss result, or having a desired amount of savings in your everyday banking account, consistency is the key.
Here, we have broadly discussed 6 effective methods of saving money. These are some best financial ways to help you save some extra bucks.
So, without any further ado, let’s begin:
Table of Contents
1. Why are you saving?
Do you recall days when you wished you had a few extra dollars in your pocket during an urgent crisis? Trust me this is the best motivational practice that can double up your saving spirit!
If you don’t want to add more such crisis memories to your list, start saving. An even better way is to set a long-term goal or a reason for which you want to save money. A marriage, a vacation, education, emergency health funds, you would find several lined-up reasons that require you to save money!
2. Note down your expenses.
Once your goal is set, you would want to analyze your expenses to check the overspending areas. For that matter, you need to keep a record of every single expenditure that you make. Starting from a hairpin to every cup of coffee.
It’s fine if you are feeling weird right now, once you see the increasing dollars in your savings, you would honor yourself for this! Don’t forget any major or minor amount that you spent, record every expense.
3. Limit your monthly budget
It is one of the obvious tips but this doesn’t take away its absolute effectiveness. Setting up a monthly budget goal naturally limits the extra expenses that you are about to make in that particular month.
If your monthly budget was initially $1500, you can at least reduce it to $1450. Gradually, these $50 would pile up to make $500! Initially, you may feel it’s impossible, but slowly you will learn how to cope within the given amount.
4. Control on extravagant expenses
Is dining out frequently costing you your precious savings? Doesn’t matter how bad the lavish dishes, cushiony chairs, mesmerizing lighting, grand decorations, and warm weather tempt you, do not lose your hold on money!
Cut down on such frequent overspending desires from four times a month to once a month! Instead, you can try setting up a similar or even better dinner plan at home that might require hard work but it will save you some extra bucks. What do you think?
5. Separate your needs from wishes
You may wish to have a luxurious brand-new car, but your needs can also be met from a comfortable and affordable four-wheeler! Prioritize your requirements over wishes to fulfill an even greater wish over a certain period of time.
If you keep changing your bike every month, you won’t be able to afford a grand car or a deluxe bungalow! Remember, these short-term needs shouldn’t affect your post-retirement plans.
6. Don’t stalk up unnecessary commodities
Don’t stock up your home with extra ration unless you get them for some exceptional discount. And even if you get a discount, there are food items that perish over time! So, you will have to purchase the entire quantity again!
I remember stocking some extra dry fruits on discount, and they lost their crunchiness within two weeks!
Thus, even if you are stocking items at discount, make sure you store them in suitable conditions.
Over to you…
These were some best financial ways to save money. Remember, you need to allocate your savings to long-term goals. Lastly, money being a very crucial commodity, should not be gathered with a spirit of sacrificing desires. You should save money because you have bigger aims to be fulfilled in the future!
Don’t forget to share some funny stories with us that reveal how you failed at your attempts to save money. Well, let’s be honest, we all have one such story! 😉