Everybody knows that saving money is a prudent thing to do, but knowledge and action do not always go hand-in-hand. In order to save money consistently, it is important to adopt strategies that will result in daily, monthly and more long-term savings.
This blog post will detail seven tips and techniques that you can easily apply to help you save money. Some of them will yield results almost instantly, and others will provide more long-term benefits.
Become Debt-Free As Soon As Possible
If a large proportion of your income is being used to pay off debts, it is almost impossible to focus on saving a substantial amount each month. Settling your debts is a priority.
Focus on your smallest debts first, and use the debt snowball technique to work your way to being debt free.
Eat All Of Your Meals At Home
Most people eat 21 main meals in a week. What proportion of these do you eat at home? If your answer is not close to 100%, you are missing an opportunity to save money. Preparing meals at home is invariably cheaper than eating out. Make eating out a treat, not part of your weekly routine.
Use Cash Instead Of A Credit Card
If you are trying to save money, it is important to know where all of your money is going. Make a budget and at the beginning of the week, visit a cash point and draw out the exact amount of money you will need.
If used wisely, credit cards can be a useful personal finance tool, but they can also encourage overspending and rash purchases. Stick with cash to ensure your budget is adhered to.
Use A Piggy Bank To Save Your Spare Change
If you empty your pockets of loose change at the end of each day and store it in a piggy bank or something similar, you will be surprised at how quickly it adds up. At the end of the month, you will have a sizable sum that can be used to pay off your debts or go towards the next month’s budget.
Only Buy What You Need
Many people view shopping as a hobby. However, if you are striving to become debt-free, or trying to save money, you must only shop for what you need. If you are not sure whether an item you want to purchase is really essential, leave it in the store, then go back a few days later. If you still think it is something you need, buy it, if not walk away.
Consider Leasing A Car
It may seem counter-intuitive, but sometimes it can be more cost-effective to lease a car than to enter into a purchasing deal. There are many factors that will determine the best option for you. Run the numbers and consider how often you use your vehicle, how much it is worth, how much it costs to run and whether it is used for work. ICL is a great source of competitive car leasing and contract hire deals.
Refinancing Your Mortgage
The mortgage is the largest debt owned by most households, so it stands to reason that it is worth investigating the option of refinancing. There are dozens of mortgage products on the market. Just because you’ve been with one lender for a long time, you do not need to stay with them. Shop around for the best deals.
Applying any of these tips will make a big difference to the amount of money you can save, but if you implement all of them, you will be well on your way to becoming debt free and having a savings account bulging with enough money to provide you with a contingency fund to fall back on when times are hard, and the funds to live an anxiety-free life on your own terms.