Everyone has a good intention when it comes to saving money, the problem perhaps is when one decides to start doing it. Many have not set money saving as a priority, and therefore usually attach it to some milestones first. For instance, they tell themselves that they will save when they reach a certain age, or when they get some promotions, or after they have completed a certain project. This is a fallacy. Developing healthy savings habit takes care of your future rather than your present needs. But no one wants his/her paycheck to be controlled by debts. Some of these tips will get you started well.
1. Clear your debts.
Debts are a great obstacle to money saving. You can adopt the debt snowball method to pay off what you owe; this is where you pay off your debts from the smallest amount you owe to the largest amount. Once you can pay off all your debts, your income is freed and you can begin to focus on the saving goals you have set.
2. Check your expenditure on groceries.
Most people often find themselves overspending on groceries. It is advisable to make a plan of your meals then budget for your groceries according to your plan, avoiding to buy what is necessary or not in the budget. You can also decide to leave the kids behind when going shopping to avoid extra expenditures; you know how kids always want to pick more of what is not in the budget? You can also opt for online shopping after budgeting to save yourself from impulse buying that may arise from viewing when you are in at the supermarket.
3. Cancel automatic subscriptions.
You are on Netflix, Amazon Prime, Showmax, Adidas Runtastic Premium and so on, and you are paying monthly or yearly subscriptions for all these. You are losing money quick. It is advisable to turn off any of the subscriptions that you do not regularly use. For instance, you can settle on one movie streaming service instead of three, cancel auto-renewals to follow up on your expenditure on a monthly basis and only renew on necessity. Some subscriptions like Netflix can also be shared, you can opt for that.
4. Save your money automatically.
It is possible to set up your salary or cheque bank account to automatically remit a percentage of your earnings, say 10 percent, to your savings account on a monthly basis.
5. Save on the cost of energy.
Every time you spend more time in the bathroom taking a hot shower, you spend more units of electricity tokens. You can start thinking of spending slightly fewer minutes in the shower than you currently do. It is also advisable to use energy saving bulbs and switch off the lights any time they are not in use.
6. Pack your lunch to work and eat at home.
Restaurants are there to give you an easy food, but at times that will cost you an arm and leg in the long run. Get a Lunch Bag with an insulator, cook your food and carry it to work. You will not have only saved on the cost and unbudgeted for food, but also kept yourself healthy eating food prepared by you. You will be watching your savings grow every month from this exercise, since you’ll have saved all these lunch monies.
7. Always ask for discounts.
Just ask and you’ll be given, so it is said. Always check to see if there are discounts on offer before making purchase. Even online shops will be offering discounts, but you might not be aware of them if you do not look keenly. When shopping from physical stores, consider paying in cash, it is always easy to negotiate when holding cash at hand.
8. Freeze your expenditure.
Make a decision not to buy nonessential things for about a week or a month. It is about you challenging yourself and keeping your expenditure only on the essentials. At the end of the month you will have saved a lot that you would have otherwise spent on non-basic stuff.
9. DIY (Do it Yourself)
Not everything needs an expert who you will obviously pay for their services. Learn to do some of these things on your own and save some money. For instance, your bench just got broken, you might only need a hammer which you can borrow from a neighbor and some nails for repair. You can pick some lessons on how to do that on YouTube. Alternatively, you can ask a neighbor to come and help you do something that you would have otherwise paid for.
10. Sell anything that does not serve you.
There could be a lot of things in your house that are not helping you at all. Sell them. The shoes that are not fitting anymore, your handbag that is still in good condition but you have lost interest in, the dispenser you first bought that you have since replaced; sell them, and get that cash.
The number one rule for saving is to account for every shilling you spend. Create a budget at the beginning of every month, watch where your money goes and understand how much you can eventually get to save every month. Keep in mind that what matters is not how much you earn, but how much you spend and save from what you earn.