Saving money is important for financial security and financial emergencies so that when the day comes, you won’t have to put yourself under loans and debts. Instead, all the costs would be covered through your emergency funds and savings.
Having sufficient savings in the bank means that you can easily plan your family’s future and commit to certain goals in life, such as sending your children to college, or deciding to have more children. The importance of savings simply cannot be overstated.
Everyone knows it’s important to save money, but the question is how do you actually do it?
Here are some money-saving tips that you can use to change your life:
Set a goal:
No plans ever succeed without a goal. Visualize a target that you need to save for, it could be anything from shopping to buying a house, your wedding or even retirement plans. Research the amount you need to save to cover the costs and set aside about 20 to 30 percent of your monthly income into a savings account.
Manage your spendings:
Many of us find ourselves waiting for our bank statements to determine our spending of the month. But then you only clear out the arrears in your statement and leave nothing for yourself. Instead, keep a record of every penny that went out of your wallet through expense tracking apps such as Wally or round up all your purchases manually in a notebook. This way you’ll start saving more once you realise you are spending on things you could easily live without.
You can save hundreds annually from your utility bills alone. Turn down the thermostat in your house, and switch to an inverter instead of a regular AC. Start purchasing energy-efficient appliances, and always turn off all unnecessary lights in your house. Another good way to save on electricity is to use dimmer switches or LED bulbs.
Cancel unnecessary subscriptions:
Let’s be honest and face the facts, you haven’t visited the gym in months yet you’re still paying for it every month. You don’t have time to watch movies, but you pay a 100$ every month for a TV subscription. Canceling unnecessary subscriptions services can save you a ton of money annually.
The 30-day rule:
Another saving method is the 30-day rule which is quite simple. If something catches your eye while you’re walking past a store or scrolling through social media, then save that item in your mind to spend on it later. You can place all the remaining money in your savings account that you would have spent on that item and do that till the end of the month. Ask yourself after 30 days if you still want it, chances are you might not want it that much anymore.
Get a savings account:
Keep your daily use bank account different from your savings account. This would reduce the tendency of going beyond your budget.
Spend less on food:
When we say spend less on food, we mean the junk food you consume every day. You spend a large sum of money every day eating out when you could have just eaten at home, at a fraction of the cost. Instead, pack your lunch and commit yourself to only eating out once a month. Bringing your lunch will even give you the freedom of variations in your daily food and build a healthier diet.