The saying ‘save for a rainy day’ is not empty advice. It is imperative for a person to save and to have funds stashed in the bank or in any form of investment to tide them over rough spots such as emergency expenses and temporary unemployment. Saving money in today’s society is not easy. The temptation to spend is everywhere and to save money takes determination and commitment. However, there are small everyday things that can be done to help save money. After all, even the smallest amount saved can make a big difference when in debt.
Below are 5 tips on how you can save money:
Tip No 1. Spend less – To really save money, a person needs to spend less. If a person reviews all the little expenses that they spend on every day items that are not really necessary, they will realize that this may sum up to a considerable amount of money. Here are some expenses that an individual can cut-back on or even avoid to save money:
- Taking a taxi or using the car to and from work can be expensive. You can avoid these costs by taking public transport, riding your bike or walking to work. This will not only save you the taxi fare and fuel costs it will also keep you healthy.
- Buying branded items when the quality of the unbranded is almost the same, if not better. It is the name that a person pays for, not the quality.
- Rather than having the newspaper delivered to your home every morning, buy it from a news stand or better yet read the news on the internet, this will save you a nice annual charge.
- Energy bills can be costly. Reduce energy bills by using energy saving light bulbs and other devices and by turning off the light every time you leave a room.
- Buying a coffee from the coffee shop next door to work each morning is costing you a fortune for something you can do yourself at home.
Tip No 2. Shop Wisely – The first thing to do when shopping wisely is to prepare a shopping list of what you need and stick to that shopping list. Bring only enough money to pay for the items on your list and leave the credit card at home so there is no temptation to buy on impulse. Check out stores, local markets, supermarkets, and local shops that offer the best prices. Take advantage of promotional offers, as these can also be a great money saving tool.
Tip No 3. Limit Debts – There is no avoiding debts, but the key to saving money is to limit debts and to control them. If there is a need to use the credit card make sure that it is paid on time so that there are no interest fees charged to your account.
Tip No 4. Prepare a Budget – A person who wants to save money needs to prepare a budget, if possible a monthly budget. Without a budget it is almost impossible to save. A budget will give immediate information on how much a person earns and how much expenses they incur each month. A budget is a good way to identify which expenses are unnecessary and can be avoided.
Tip No 5. Save money – Set aside a certain amount every pay check that will be kept in a savings account. A growing savings account is a very good incentive to continue saving.
It is important that every person have a savings account that they can fall back on when unexpected situations arise. Even the smallest amounts saved on a daily basis can make a big difference to your monthly and annual savings.