Wouldn’t we all love to have a little more money? There are so many things we plan to do in life like travel, buy a house, good education for kids, donate to charity…..but most of the times, the only thing that stops us from making our dreams a possibility is the cash in our pockets!
If only we could bridge the income and expenses gap, we could do so much more! Little do we realize that one of the best ways to have more money is to save more money. But as we all know, it’s a lot easier said than done. We are always on the wrong side of the wheel, saving a lot less than we want to.
Let’s see how we can simplify the process and save money to meet our financial goals.
7 Simple Tricks To Help You Save Money
1. The Best Money Lesson From Warren Buffet – Let’s start with Warren Buffet, the most successful investors of all times and on the list of world’s 10 richest person for many years in a row. His lesson is so simple, yet so powerful – Don’t save what is left after spending. Spend what is left after saving.
The trick is to treat your savings as one of your bills you must pay and put aside a specific amount of money each month towards this. Do this the first thing every month, the very same day your salary gets credited to your account. By doing this, you ensure a fixed saving amount for yourself every month and no unplanned shopping or eating out trips can get their hands on this money!
2. Use Cash for Daily Expenses – Though plastic money is very convenient, one of the biggest drawbacks is the fact that we tend to lose track of how much we end up spending. A swipe here and a swipe here, and before we realize – we have already crossed the budget for the week or the month!
I like to pay my bills by card but for the daily expenses, I withdraw a specific amount every week. Sticking to an all cash weekly budget definitely helps me curtail my expenses as I am always conscious of the money in my wallet and the number of days left in the week. Sticking to cash is definitely a great way to keep track of your purchases and cut out unnecessary expenses.
3. Avoid Impulse Buying – How often has it happened that you went to a store and something caught your eyes. Now this isn’t something that you necessarily needed or had planned to buy. But, there you go – one swipe of the card and you’ve given in to your impulse yet again, like always! I feel these impulse purchases are one of the major culprits of our budgets going haywire. Create a list of things you need to buy when going for shopping and stick to it as much as possible. Curb your urge to buy things on impulse and always give yourself at least a week’s time before you give in to that impulse. Most of the times, you will realize that the urge will go away once you get back home and think over it again – away from all the chaos of the market.
4. Save a Certain Amount Everyday – I have been practicing this for the last few months and I must say, this method works quite well. I save all the loose change left from a day’s purchase in a jar and don’t touch it until and unless there’s an absolute emergency. Even if i have to take out some money from it, I make it a point to replace it the very next day. At the end of the month, I use this money to buy one or two things that I avoided buying on impulse. This method has two benefits. First, I cut down on all my impulse purchasing during the month as I force myself to make only planned purchases and that too with the amount of money available from saving daily loose change. Second, a lot of the impulse buying gets cut out automatically as most of times you will realize that the urge to buy many things fizzles out naturally if you wait before making the purchase. You could also use this saved money to buy all the Christmas presents at the end of the year!
5. Space Out Your Shopping Trips – It’s a fact, window shopping rarely stops at that. Most of the times, we do end up buying one or two things that we never intended to. A simple way to avoid this unnecessary spending is to reduce the number of times that you go out shopping. Once a week should be a good idea, that too with shopping list in a hand to avoid going overboard.
6. Eating Out Is An Expensive Habit – I happened to read an article in The New York Times, “The Unaffordable Luxury of Food”. It very correctly chronicled how the today’s youngster squander away a good portion of their monthly income on eating out and fine dining. Little do we realize the financial toll this habit places on our savings plan. Think about it carefully – can you really afford to spend all that money on eating out, which by the way, is the top most expense for most households. Do your pockets a favor, plan your meals for the week and do your grocery shopping accordingly. Trust me, your body will be as happy as your wallet for this!
7. Add An Extra Source Of Income – Financial experts often advise us on diversifying our investments but very rarely do we hear people advising us to diversify our income streams. It need not be a huge amount, but getting even extra $500 a month can help us increase our savings and bank balance. Living in a digital world, there are numerous opportunities available where you need not be physically present for a job and can get the work done from the comforts of your home. Don’t start with something that puts a heavy toll on your schedule or time, just maybe 10 hours a week at the maximum. Read here to get a start on ideas about how to generate an extra source of income. There are a thousand and one ways to generate extra income, just find out what is it you can do best and then go for it!
So, there you go. The money diet is ready for you! Put it into practice and definitely, you will be creating a better life for yourself in the days to come. I’ll end this post with a great quote on saving:
It’s not about how much money you make. It’s how you save it that makes all the difference!