Saving money seems daunting, but there are some small, simple steps you can take to save big this year.
Engulfed in a fast-paced world brimming with distractions and sundry responsibilities, people often shell out their hard-earned cash while overlooking simple, easy and self-evident practices for cutting expenses.
Money saving shouldn’t necessarily be based on strict discipline and austerity. These five simple tips can help you save money without having to sacrifice your lifestyle.
Toss The Extra Stuff
?leaning up your living space may help to improve your awareness of and make you question your regular spending habits. Take stock of everything you’ve got, starting with small things, like clothes and household items you don’t use, and ending with larger assets, such as real estate.
A minimalistic approach to daily life and strategically redirecting your current wealth may help you stop wasting money and energy on something that brings you no profit or benefit.
You can also find ways to lower your utility bills. Compare the different packages of Internet, television and home security services offered in your area and tailor your service bundle according to what you need most.
This tip is also applicable to your diet. If you stop purchasing coffee, snacks and meals out and teach yourself to prepare homemade meals and drinks, you may save thousands of dollars in your balance by the end of the year. Go for groceries only when you have a reasonable shopping list, and avoid making hasty decisions when making a run to the market.
Gamify Your Budgeting And Saving With Apps
The most obvious way to save money is, of course, to follow a budget, but for many of us, this is the hardest thing to do. Today’s market nevertheless offers a wide array of money-saving applications that track your spending habits and reveal your leading money-wasting categories.
Don’t forget to include a “savings category” in your plan and separate the amount you want to allocate in the bank deposit. You can connect some apps to your bank account and sign up for an automatic transfer of a certain percentage of each salary paycheck into your savings account. This is a good idea if you don’t trust your impulsive nature or just want to simplify the process.
Apps can also give good recommendations on how to make creative and smart financial decisions in the future and offer monthly household financial functions. Some apps, like Qapital, provide customers with playful functions such as an automatic money transfer to your savings account every time you purchase a cup of coffee or make a Facebook post.
Choose Your Credit Cards Wisely
These days, the market of credit cards offers a smorgasbord of benefits and discounts. To begin your search, you should check your credit score, track your spending history, look at your routine expenses and then choose a credit card which offers the highest cash back for those goods on which you put a premium.
For example, if some of the leading spending areas in your budget are fitness and air travel, you should consider cards that offer, for example, gym membership discounts or frequent-flyer points.
You can also put all the money you saved from discounts, cash-back rewards and coupons on the savings account, as though you paid the full price. The reason for this is that you must be wary not to increase your spending to match your rising income.
Optimize Your Everyday Logistics
If you are willing to walk or ride a bike on a daily basis and consider this a healthy improvement to your routine, then this money-saving tip is for you. The decision to give up driving your own car can save you thousands of dollars in your annual income. Even taking public transportation can save you loads in the long run.
Of course, it depends on the area you live in, your lifestyle and the distances you need to traverse every day. Calculate your expenditures for owning a car and compare it with the amount you would have to spend on walking, cycling, taking a taxi, or using Uber. The difference might surprise you.
Learn to add transportation costs to every action you are planning to take. Optimizing your daily routes to work, supermarkets and other destinations will save you both time and money.
In addition, you should consider moving closer to your workplace, as this will cut your daily transportation costs down sizably.
Invest In Healthy Habits
We cannot, of course, forget about out most priceless asset – life itself. A proactive attitude to your body and health will not only extend your life but also save you a significant amount of money. It can also maintain your productivity at work for the long haul.
A balanced, well-organised meal plan will help you avoid impulsive spending on food and alcohol, which after a year may add up to several thousands of dollars.
Paying for a gym membership and exercising regularly are not the same. The good news is that the latter can be done for free or for little money. You can make ample use of the many training, yoga and dance video channels on YouTube, as well as attend free or low-cost sporting events in parks and gyms, ride a bicycle, run and work out on your own.
Preventative medical testing and services, regular physical activity, a robust diet and sufficient sleep can significantly improve your working capacity and cut unpredictable corrective medical treatment costs. Don’t forget to make sure you maximise the benefits of your health insurance – many programmes offer a number of bonuses that can lower your monthly premium.