10 Super effective ways to Save money

10 Super effective ways to Save money
If you feel swamped about how to save money, you’re not alone. While some may think saving money is relatively straightforward, So even though spending money is arguably more exciting, you should consider saving money a priority. And there are plenty of ways to save money that don’t involve making sacrifices, either. Sometimes the best way to start saving money is simply to become more aware of your finances and spending habits. With an understanding of your budget and your true needs, you may start putting away more money than you ever expected. To effectively save money, you should consider both long-term strategies like paying down debt, and short-term tactics like skipping the cocktail at the restaurant. While you may not be able to overhaul all your spending habits overnight, with time and consistency anyone can learn how to put some money aside. Whether you’re looking to start saving for the future or you’re just looking to be financially savvy right now, there are many reasons that you may struggle with saving. Keep reading for some practical money-saving tips, or jump to the section that’s most helpful for you:

10 Super effective ways to Save money 

1. Make a budget                                                                                                                                        The first place to start when trying to save money is to assess how much you really have and where that money is going. Consider using the 50/20/30 rule to create a budget. The 50/20/30 rule states that fifty percent of your income should go to essentials like rent and food, twenty percent should go savings, and thirty percent should go to personal expenses like entertainment. At the heart of any savings plan is a budget. Budgeting helps you prioritise your expenditure and find a balance between spending and saving across a whole year.  By checking your credit card statements, bills, banks statements and receipts, you can work out all your regular expenses, such as your rent or home loan, transport, insurance and electricity.  You then deduct these expenses from your income your full or part time job or casual work, pension, government benefits, child-support payments, investments, etc.   

2. Track your spending                                                                                                                          You may be surprised about where your money is going. Keep a record of what you spend to see how small expenses add up. You may not think that coffee every once in a while makes a dent in your savings, but seeing the sum of your purchases may change your mind. We can fall into the trap of thinking spending on big things is what gets us into trouble, when often it’s the little things that end up costing us more.  That’s why it’s important to keep track of your day-to-day spending, so you don’t live beyond your means. Your bank statement will tell you how much money is going into your bank account and how much is going out. You can then compare it with your budget to see whether you’re sticking to it or not. You can then identify areas where you can save.  Just the thought of having to track our spending can ward off impulse purchases.

3. Pay off your credit card                                                                                                                        Pay off your cards every month to keep your debt from piling up. If possible, avoid going into debt in the first place by spending within your limits and keeping your credit card at home. With a savings built up, you won’t have to put unexpected expenses on a card. Paying your credit card in full and on time is the best way to avoid interest charges and late-payment fees.  To avoid missing your repayments, MoneySmart recommends setting up a direct debit payment. And you should pay more than the minimum required, otherwise you’ll end up paying lots more in interest. Talk to a financial advisor about your options regarding your debt. You may find that consolidating multiple high-interest payments into one lower interest payment is an effective debt management strategy.

4. Open a savings account                                                                                                                         By restricting access to your money, savings accounts can give you a higher interest rate than a basic transaction account.  Savings accounts are somewhere you can put some or all of your discretionary income – the amount left over after paying for personal necessities and tax and any windfalls. You can ward of the temptation to spend this discretionary money by setting up automatic, scheduled transfers from your main account to your savings account. If you have to manually transfer money into your accounts, you may be more likely to forgo saving altogether. Try having a portion of your paycheck automatically deposited to a savings account to keep you contributing consistently.

5. Focus on recurring expenses                                                                                                              While every little bit helps, it’s your large, recurring expenses that provide the most fertile ground for boosting your savings, Go over your bank statements and look at all the things you have spent money on over the past year. Then see how much money you can save on them by, for example, refinancing your home loan, comparing insurance providers and other services. Spend a day going over it all and you can save thousands. While every little bit helps, it’s your large, recurring expenses that provide the most fertile ground for boosting your savings. Shopping for a cheaper energy retailer could you cut your energy bill by almost half; Insurance costs can run into several thousand dollars a year, so a saving of 10% could equate to hundreds saved. Cutting your fuel costs requires constant vigilance. Even if you’re happy with your mobile and internet service providers, ask them if they have a cheaper plan. This is information they don’t always volunteer to existing customers.

6. Control your impulses                                                                                                                      Credit cards, ATMs and online shopping make it easier than ever to spend money. Especially on things we want rather than need; the extent to which we succumb to temptation typically boils down to our willpower. Studies have shown that self-control is a bit like a muscle that tires out with use.  Ironically, it’s the willpower of poorer shoppers that tends to get depleted the most. This is a result of the fact they face repeated, difficult financial decisions. It’s not that the poor have less willpower than the rich, Rather, for people living in poverty, every decision even whether to buy soap requires self-control and dips into their limited willpower pool.  If you see something you want wait at least a day before you buy it 30 days if it’s a non-necessary big purchase. You might find the urge passes. Another way of short-circuiting your impulse to buy is to work out how many hours of work the purchase price represents; chances are you’ll think the item’s not worth it.

7. Smooth your bills                                                                                                                                 Bill smoothing is a payment system offered by utility providers electricity, gas, water whereby you pay them fortnightly or monthly, instead of having to pay the whole bill in one go.  It protects people on tight budgets from bill shock and having to go into debt and potentially pay interest.  This allows you to save money up over time to pay for certain bills annually versus, say, monthly taking advantage of discounts for paying bills and premiums in one hit rather than in instalments. Evaluate whether or not you’re being as conservative as you can with your utilities. Some quick tips to save money on your bills include: Insulating your windows with a simple sheet of bubble wrap, unplugging appliances you’re not using, and turning the faucet off when you brush your teeth.

8. Plan your meals                                                                                                                                  Meal planning is one of the easiest ways to save money If you know what you’re eating for the week and have shopped accordingly, there’ll be no need for random visits to the supermarket. Extra visits result in your spending more money and even wasting food. It will be even easier for you to stay within budget by buying all of your staple items at lower-priced stores; using the food you already have in your cupboard, pantry, garden and freezer to save money. Make a list of what food you’ll need for the week, keeping in mind what meals can be made from the ingredients, and don’t buy anything that isn’t on your list. It helps not to go to the grocery store hungry or with a picky eater. Americans waste about one pound of food every day, adding up to enough food to feed 2 billion people annually. Many foods are still safe to eat weeks after the date on the package, so take a second look at the food inside the package before tossing it.

9. Become a promiscuous consumer                                                                                                         If you’re a brand loyalist someone who repeatedly buys a product or service; Chances are the vendor in question knows you’re less price sensitive than most prospective customers. They could be taking advantage of your loyalty or, worse, taking you for granted by charging you noncompetitive prices.  Don’t allow your emotional connection to a vendor to get in the way, start looking for a better deal elsewhere. Just the threat of leaving may prompt a better offer from your current supplier. They’ll understand retaining existing customers is usually far cheaper than winning new ones. And if they don’t give you a discount or free upgrade. Not just in newspapers and junk ads anymore, coupons are available on company websites, apps like SnipSnap, and online. Before you go out shopping, check your phone or computer and increase your savings.

10. Avoid a poverty mentality                                                                                                                 Many people consider thrift  using money and other resources carefully and not wastefully a virtue.  However, while thrift is an obvious way to save, we need to guard against being too frugal; Ultimately, the only way to get ahead financially is to focus on earning, saving and investing. Focusing on skimping on the grocery and electricity bill will only get you so far, and puts you at risk of a poverty mentality.”  A poverty, or lack, mentality is one preoccupied with a shortage of money: all the things the person doesn’t have and can’t get, These people tend to have self-limiting beliefs and to make decisions based on fear of loss or failure. In contrast, people with a prosperity, or abundance, mentality base their decisions on what the possible benefits are.

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