Saving money can be a difficult task, especially nowadays when everything costs more and more. Nevertheless, saving money is not an impossible task if you know how to go about it.
Here are some tips to help you grow your savings and become more financially wise:
- Record all your expenses.
This is the first thing you should do if you want to save more money. Listing down all the things you buy allows you to know where your money goes and how much goes to where. Knowing where your money goes can also help you plan which things to cut back on, so you can save more. Furthermore, it’s always good to be aware of your expenses as it can make you more responsible with spending.
- Avoid using credit cards.
Unlike with cash, with which you have to be careful in spending every dime, credit cards allow you to spend more than what you currently have. This is convenient in emergency situations when you need to buy something but don’t have the money for it. However, those purchases can add up fast without you realizing it, giving you a massive credit card debt which can end up being beyond your financial capacity. Therefore, it is better to avoid them altogether if you can.
Not using credit cards will also allow you to be more responsible with your spending as you will only spend what you have.
- Make a budget – include savings.
Making a budget is another must if you want to save more. Knowing where you are financially will help saving money become easier as this allows you to plan how and where to spend your money. Having a budget also will also help in making sure that you pay the necessities like the electric bill, water bill, and rent on time.
It will also allow you to allot a part of your earnings to your savings as everything else is accounted for. The 50/30/20 rule is a good rule to follow. It means allotting 50% to necessities, 30% to wants, and 20% to savings. You can switch the wants with the savings so you’ll save more.
- Always shop with a list.
Shopping with a list will allow you to prioritize only the things you came to the store to buy, preventing you from spending more than you intended.
Making a list will also make you think more about what you spend your money on and therefore, make you a more responsible spender.
- Wait 3 days before making a big purchase.
Waiting 3 days will allow you to further reflect whether making such a big purchase is worth it or not. It will allow the feelings of impulsivity pass and you will know then if it’s something you really want or something you wanted in the heat of the moment.
Waiting 3 days can help you stop those frivolous purchases that you will inevitably regret, saving you from buyer’s remorse.
Saving money is hard, but it can be simple. The key to it is self-discipline and patience. These tips will surely help you start saving your hard-earned money the right way.