Saving money is one of those tasks that’s so much easier said than done. There’s more to it than spending less money(although that part alone can be challenging). How much money will you save, where will you put it, and how can you make sure it stays there? Here’s how to set realistic goals, keep your spending in check, and get the most for your money.
1. BYOL/BYOC (bring your own lunch and bring your own coffee) – One of the biggest expense in most people life is food. And when it comes to food, making your own lunch or dinner and making your own coffee will save you lots. For example, a nice cut of steak will cost you at most 10-15$ on the bbq, while the same steak will cost you at least double, if not triple the price in a restaurant. Similarly, a cup of coffee made at home can make you save over 1000% of what you would buy in a coffee shop. Invest in nice kitchen appliances, on the long run, you are more likely to make use of it and will come ahead.
2. Buy in bulk or buy online – The more your buy, the less it will cost you. Because they are likely to make more profit, most stores will sell you bulk produce at a cheaper price. Similarly, buying online can save you big bucks. Indeed, because all they need is the cost of a warehouse, which they would already be paying even if they were selling in store. Because they have less costs associated to selling an item, they can sell it for much less, and shipping is often included in the price as well!
3. Set saving goals. Think both long term and short term. Whether it is a new toy for yourself, a trip or a house, think about how much money you should save per month. Then, with every paycheck, make sure to put that money aside, before you even started spending a penny of that new paycheck. With automated saving plans with most bank accounts, this is now easier than ever.
4. Buy it… or not! – Make sure you need it before you buy it. And remember, it is not because something is on sale that you ought to have it! Make wise judgements and trim down on the expenses.
5. Avoid the use of credit cards – Pay for everything you buy cash. This will avoid you using your credit card. Keep a sufficient amount of money in your wallet for groceries and miscellaneous costs, determined by your weekly budget (see below). Credit card companies charge you astronomical interest rates, up to 21%!
6. Rent movies – If you catch every latest Hollywood movie, this can add up to 30$ per week. Now, if you are going with that significant other of yours, this is 60$ per week. Now, if you were to rent those three movies, this would have cost you a bare 9$… Do the math!
7. Make a weekly budget – Balance your earnings with your saving goals and your spending. By writing down this budget, you are more likely to adhere to it, but also to keep track of how much money you have left. Make sure to include a “treat budget”, for all those snacks and special outings.
8. Shop for prices – Before buying, why not have a look at what is on sale at the store across the street. If you’ve always wondered who the hell read those grocery flyers, it is time you start reading them and start comparing price. There is a big cost difference between buying a grocery item at $7.99/lb and on sale at $2.99/lb.
9. Carpool or walk – One of the biggest expense in a lifetime is car expense, especially those related to gas. With all those stories of oil spill, needless to say that the cost of gas is higher than ever. By carpooling or walking anytime you can, you will not only save money on gas bill, but also keep your car in better condition longer and even do something good for the environment (and yourself!).
10. If you can’t afford it, don’t buy it. Last, but certainly not least, if you don’t have the money to buy it cash, don’t buy it. Regardless of how tiny it is (a car or an mp3 player). You don’t need to always have the latest model of everything, and the worst thing you could do is to put it on your credit card because you don’t have the money “right now” (see above).
picture credit : CC electrofantastic
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