Saving money doesn’t have to be difficult, it can be quite satisfying to see your money growing over time. However, although it doesn’t have to be challenging, some people struggle when it comes to money management. Therefore, here are seven simple and practical money-saving tips that will make saving easy and hassle-free.
- Separate Your Money
Creating a simple budgeting system can help you to save money faster and more efficiently. An easy system to adopt is the cash envelope system. With this, you figure out your day to day outgoings, your leisure money, your clothes money, food money and your static savings and sinking funds.
Sinking funds are savings pots that help you save for something specific. For example, a car, vacation, house etc.
Every time you get paid, you separate your money into envelopes. When your static savings and sinking funds reach $1000, you deposit it to the bank. Each week you restuff your envelopes.
2. Save Your Coffee Money
How much coffee or tea do you purchase every week? If you are spending money on takeaway coffee more often than you should, consider cutting it out or reducing the amount that you do spend. Every week instead of spending money on coffee, just make your own at home instead.
Put the money you would have spent on coffee into your sinking funds or static savings fund.
3. Savings Account
You probably already have a savings account however, you should consider getting an online savings account that you can link to your checking account. Therefore, each time you have some extra money in the bank, you can transfer it over to your savings fund.
Don’t be afraid of using coupons and discount vouchers. You can save hundreds per year just by utilizing discount coupons. You can either cut coupons from magazines or newspapers or sign up to coupon websites and use online discount codes.
5. Buy Sale Items
Instead of buying clothes, makeup and other items at full price, buy your items on sale. It is tempting to purchase things when they first hit the shelves however, you can save a significant amount of money by purchasing sale items instead.
6. Use the 30-day Rule
The 30-day Rule is a simple way of reducing the amount of money you spend. The next time you are tempted to make an impulse purchase, stop yourself by giving yourself 30 days to think about it. Usually, the 30 days go by and you realise that you didn’t really need the item you were tempted to purchase.
7. Avoid Using Credit Cards to Pay Bills
Using a credit card to pay bills is fruitless because you will have to eventually pay it back at a higher cost. Therefore, instead of falling into the credit trap, pay close attention to your spending and focus on reducing the amount you spend to free up the extra money you need to cover your bills.
Utilize all or some of these tips to help you save and invest your money and build a stable financial future for yourself and your family.