How to Save More MoneyMay 10, 2023
Saving money is an investment in your future. It's a strategy that allows you to work towards your dreams and accomplish your goals. So whether you want to save for an exotic vacation or start planning for retirement, understanding how to save more money is critical to setting yourself up for success.
Save money for your benefit.
When you care about your future and have goals you want to achieve, saving money is part of what you need to do. So many things we want to do and enjoy in the future involve money, so it will do you good to save money now and build it up as time passes. However, saving money may not be easy, especially when you have financial difficulties and problems that need solving. The good news is that you can make adjustments and discipline yourself to start saving money. The following are some ways to save money that you may want to start doing.
1. Make budgeting money a habit
Budgeting goes hand in hand with saving money. When you make it a habit to budget, you know where your money goes and how much you spend on different things. You can then allocate how much money goes under different categories, such as necessities and luxuries. Savings is one category you can put in your budget, and you decide how much cash should go into it, depending on what you can save after deducting all expenses. Budgeting should be done at regular intervals, such as every payday or doing a monthly budget. Regular budgeting allows you to track your living expenses, so you can do something about your spending habits and put more money into your savings account.
2. Start small when saving, then go bigger as things become more lenient
Saving money can be a goal, and it can be overwhelming if you expect to save big amounts of money when you are only starting and still need to clear other obligations, such as debts, that get in the way of your savings goals. For a start, you can start putting money for savings in small amounts. As you work on clearing debts, reducing unnecessary expenses, and gaining an increase in the amount of money you earn, you can gradually increase the amount of money you save. You can start by creating an emergency fund, equivalent to around six months' cash for expenses, then move to a more significant amount of savings to meet your financial goals. Save what you can based on your current earnings and expenses, and don't force yourself to save if it is still impossible with your current situation.
3. Get rid of debts
It becomes more difficult to save when you have ongoing debts, so clearing as many of them, or if possible, all will significantly help you save. Think of the money that goes into debt payments as something that you could have saved or used somewhere if only the debts weren't there in the first place. However, it can't be helped that sometimes we need to make some loans because our earnings may be insufficient or something urgent comes up, and we lack the funds to address it. As much as you can, prevent taking a loan for something if you can pay it with cash. Otherwise, if you already have ongoing debts, make it your goal to settle them as soon as possible, starting with small ones and then moving on to bigger loans. Avoid being late with payments, as they may incur interest charges that put additional burdens on your finances.
4. Pay your bills on time, including loan payments
Many long-term or even short-term payments come with interest fees. They are extra charges incurred upon taking some loan or payments within a specific duration. These fees are a means for companies to earn from you, including the interest fees that happen when you get late on your payments. As if the initial or overall interest is not enough, the extra charges from paying late can affect how you save money. Those late charges could have been money you saved if you had paid on time. So make it a habit to be punctual with your payments, so you won't need to incur additional charges.
5. If you can buy something at a discount, do it.
An excellent way to save extra money is by trying to buy something when it is on sale. Sales usually happen during particular times of the year, such as during Black Friday or Christmas. You can get big savings by buying something you want at significantly reduced prices, and this is where being patient can get you rewarded. Goods can also get permanently discounted prices, especially gadgets, once something new gets released and the older models become cheaper. If you can't wait for a sale, you can also research and compare prices for a particular item you want and see which store sells it the cheapest.
6. Reduce unnecessary expenses and adjust your spending habits
We may not notice it, but some of our expenditures may be excessive or unnecessary, leading to more spending. A good example is the fees we pay for a subscription service or memberships for specific organizations like gyms. Some of these may be inactive, or we hardly use them anymore, so why bother paying for them? Unused subscriptions and memberships are one of the things we can remove from our expenses.
We can also make adjustments in our spending habits to save money. For example, if you regularly dine out at restaurants several times a week or go on trips every weekend, perhaps you can reduce the frequency of such activities as they can be costly. Instead, you can replace them with cheaper but still enjoyable activities like going on a staycation or doing indoor things like watching TV or playing games on a computer. One can also avoid impulse purchases and only buy something when it is urgent and necessary.
7. Practice delayed gratification
Delayed gratification is holding off for something, such as a reward or feelings of fulfillment or happiness, knowing you can obtain something much more significant by making a few sacrifices in the present or simply being content or patient. For example, having this as a habit allows you to hold off on making purchases and focusing more on what matters, such as buying things that greatly benefit you, like a house or a car. Another thing that can help you delay your feelings of satisfaction is avoiding looking at your friends' feeds on social media or looking up whatever trendy item on the Internet. These media outlets can trigger feelings of jealousy or insufficiency if you see something on them, leading you to make instant purchases that are not necessary. Gratitude and contentment also help a lot in lessening the need to buy more things, saving you more money.
8. Increase your earning potential and income sources
If saving money is a priority for you, but you are still having difficulties doing it despite all the good practices and discipline, perhaps it's time to add more sources of income and explore other opportunities to give you the most money for savings. Maybe you need to work harder to get that promotion, find a more lucrative job, do a side hustle, or start investing to make your money grow over time. When we talk about saving, many may think it's all about reducing expenses, but growing your earnings is another way to do it. Combined, this can lead to more money in your savings account.
Saving money matters
Saving money can be challenging, especially when the economy isn't doing well and prices are rising for almost everything. However, for many, saving money may be the least of their concerns, and they will prioritize covering all their needs first. This may also include prioritizing the present more, which can consist of being okay with being happy and fulfilled now instead of waiting for the future, which can be uncertain. Of course, this "you only live once" mentality is also valid, but we shouldn't dismiss the benefits of saving money. While we may not be able to save due to current circumstances, it can become possible later once our situation becomes more lenient, and burdens get lifted individually. Having savings is like having an assurance that you have something to lean on in case of emergencies, and as your savings grow, it can become the foundation for achieving your long-term goals. Of course, one should start as early as possible in their savings journey, but it can be done anytime. What's essential is that you realize the potential that this extra amount of money can give to you and the good that it can do for your future.