Everyone wants to save money and everyone follow their own tips and tricks to do that. Here are some tips to save money to generate. But you should always remember that you have developed your spending habits over the years and so you can’t change them in just one day. But with some commitment and consistency, you can develop a good saving routine.
Set a goal
First things first – so start by setting a goal for your savings routine. It is best to set some reasonable targets with a timeline attached to the target. For example, a goal such as to buy a plot or house in four years in a particular location could be your target. You now know what you need to save money for and how much every month to accomplish your goal.
Draw a budget
The next step is the simple, old, well known and most effective method – make a budget and track your expenses. Most people fail to do this simply because of laziness. But this one of the best, time tested method that everyone who wants to save money needs to follow irrespective of what your savings goal is. You can save much better if you make a budget and plan ahead. To start with, just track your cash and credit card spends for one month. The next month you will have your budget easily.
Reduce your debt
If you are saving money with a good budget, then make sure to reduce and eliminate any loans/ debts that you have. This is applicable even for tax saving home loans. Once you are out of paying interest on your loan(s), you can easily save that money.
Avoid plastic money
When people use plastic money, they are encouraged to buy things that are non-essential and thereby spend more than they should. Try carrying cash when you go shopping, and also set a budget for that day’s shopping. This way you will focus only on items that you need. This will help you a lot because psychologically giving away money that is hard-earned as cash is a lot difficult than swiping your credit/ debit card.
Use a credit card wisely
I know that this might sound contradicting to the previous tip. But there are situations when it is possible to save a good amount of money every month by using credit cards for shopping. There are a lot of cashback options and savings coupons for using certain credit/ debit cards while shopping for grocery, fuel, dining or movie tickets. You can be wise and use these opportunities to save some extra money but always make sure to pay the entire credit card bill amount within the given period of about 50 days or so to avoid unnecessary interests on the bill.
Make a list for shopping
An excellent way to control impetuous buying is to make your list before going out shopping. Companies actually spend a huge amount of money on marketing and place their items in such a way so that encourages customers to buy them. So, when you make a list and stick to it, you can avoid picking up all those things that are advertised as cheap and tempting to buy even when you are standing in the line for billing. This will help you save a lot of money as well as avoid buying unwanted stuff.
All of us know that by saving electricity, water and gas, you are sure to save a lot of money in the long run and also be a responsible human being. Though this is a minor change such as turning off all unwanted electrical appliances when not in use, keeping all the things ready before you turn on your stove for cooking and keep a strict watch on the water that you use on a daily basis, you not only save energy but also save a lot of money.
Stop smoking and drinking
This is one important change that will help you save money, keep you in good health as well as keep your loved ones and this environment clean and healthy. This definitely takes a lot of strength and effort to put into practice but helps you save money in the long run.
Avoid “buy 2 get 2 free” deals
Almost most retail stores have these kinds of deals that force or urges customers to buy more than what they actually want and need to buy thereby making them spend more on things that they might not even use in reality. If you need one shirt, make sure to go to the shop and buy just that one shirt and not end up buying 5 shirts just because you get 2 free when you pay for 3. As you can see you have not only spent almost thrice the money, but you would also accumulate more shirts than you actually need.
It is good to have separate savings account that is not attached to the original account that you use for spending and set up an auto debit option from that account to save money every month in your savings account every month as soon as your salary is credited. It could be a small or a big amount, but this helps to accumulate a good amount of money without any effort.