If you want to get healthy financially, then you ought to start learning how to save. That said, making the savings to attain that financial freedom is easier said than done.
The common misconception is that you need to be economical to save money and hit your financial goals. Let us look at some of the simple money-saving tips you can use to grow financially.
1. Service Your Debts
For starters, you need to be wary of debt problems. Yes, debts can be a great deterrent to saving money. It is even worse if these debts incur interests as you would have to chuck out more money than you borrowed. Debts may siphon a lion’s share of your monthly income and dents your hopes of saving more money. So, the faster you get rid of your debts, the earlier you will test the value of money that you save.
Of course, the payment period will depend on the myriads of factors like your income and size of the debt. But if you devise plausible strategies like the debt snowball method where you pay from smallest to largest debt, then you can finish off your debts much faster. Once you are done with debt servicing, you are now freed to use your income for savings.
2. Monitor Your Spending
Monitoring your spending is an effective way of tracing those items that drain your financial resources. This way, you can get rid of unnecessary spending or possibly reduce huge expenses. To get a clear picture of your spending, simply draw a comparison between your income and expenditure. With this data, you will know whether your spending is still within the right zone or has overstretched.
If you already started saving, then you can know whether you are making progress or stalling. Also, try using budget apps to effectively track your spending and keep your costs low.
3. Set Saving Goals
Setting saving goals adds more impetus to the inner push for money saving. Ensure your saving goals are specific and realistic to avoid being overwhelmed and getting disappointed. Your saving goals may be to save a certain amount or service certain debts over a given period.
You can leverage the saving goals calculator to keep an eye on whether you are still on track with your saving goals. Seeing that you have achieved your saving goals, however small it may be, will boost your saving morale.
4. Automate your Savings
It is human to feel tempted to spend more when we receive huge checks. One effective solution to this is to allow automatic transfer of funds between your checks and various savings accounts. Eventually, what reflects on your check will be smaller and make you limit unnecessary expenses.
Nowadays, several banks offer this automated transfer feature. You can decide the size, circumstances, and timings of the money you would want to transfer to your saving accounts automatically.
5. Cancel Unnecessary Subscriptions and memberships
Do an audit of your subscriptions and unsubscribe from those you don’t use regularly. There are various streaming services or subscription boxes that you rarely use, yet you have constantly auto-renewed. Pull these subscriptions down to cut your monthly expenses. Only remain with those subscriptions that are worth keeping. If you are not sure of how to evaluate them better, try using transaction analyzer tools to find your unnecessary recurring subscriptions.
6. Ask for Fees Waivers or discounts
Sometimes banks or utility bills may slap you with huge fees. However, some businesses are always willing to reduce your fees by a certain percentage to retain you as their customer. Unleash the best negotiation skills you got and present your case well to stand a chance. Also, if you go to a movie theater, sporting event, or museums, check whether they offer special discounts and requests for them. Don’t underestimate the value of money you will save here because they would have otherwise gone for fees.
7. Wisely Spend Extra or Unexpected Income
Droves of people are notorious for how they spend their extra or unexpected income. You should not label them as free money but rather take them as income. Whether it is inheritance, tax refunds, or job bonuses, simply put them into good use. You can use them to service debts, credit cards, or any loan that is becoming a stumbling block to saving money.
8. Map Out Major Purchases
Major purchases are the leading elements in your spending. What about mapping out the right time to purchase these items. It could be appliances, furniture, or electronics. Knowing specific times when sellers offer amazing discounts can help you make purchases at the right time and save money. Some companies have annual sales periods or specific days like Black Friday and Cyber Monday when goods are ridiculously cheap.
These are some of the highly effective money-saving tips you can start using today to grow your financial health. Remember to make hay when it rains. You never know about the future. So, keep your savings as one of your insurance policies.