Almost everyone—even the rich—seems to have money problem these days. To help you out in these times of financial trouble, here are our top 10 money saving tips.
Tip #1: Ditch your expensive habits
Having a single puff or pint may not be that expensive, but smoking a couple of packs a day or drinking several bottles at a time would add up. If you see how much they all cost in a year, you’d be surprised. For instance, if a pack costs around $15 and you smoke at least two in a day, you’d spend $900 a month to keep up your habit. That’s a staggering $10,000+ on cigarettes alone. Think about it: if you completely stopped smoking, you’d be $10,000 richer in a year.
Tip #2: Set up a pay cheque deduction
If you have an opportunity to set up a pay cheque deduction, do so. For the uninitiated, it involves the automatic transfer of money from one’s salary to some form of savings account. How does this help? People usually end up not setting any money aside despite their best efforts because they prioritise expenses over savings. If you take savings out before expenses, you’ll accumulate funds more easily.
Tip #3: Make a shopping list and stick to it
Before setting foot in a grocery store, make sure that you have a complete shopping list, which you’ll follow to the letter. Never purchase anything that’s not on the list, unless it’s something you actually forgot and really need (not want).
Tip #4: Prepare your own food
It’s generally way cheaper and healthier to prepare and cook your own food than to eat out or buy frozen meals. Here are some specific examples: a McDonald’s combo meal or something similar costs around $8, while an entire week’s worth of groceries for one person would be worth around $75 to $80. Considering that you’ll need at least three combo meal per day, you’ll probably spend around $168 on fast food for a week.
Tip #5: Visit the library
Even if you’re not a big fan of books, there’s still plenty of things to enjoy in your local library. Here, you can browse the internet, listen to audiobooks, get Wi-Fi access, watch old television series, play board games, and borrow DVDs, among other things. Best of all: you enjoy these for free.
Tip #6: Pay off your high-interest debts
Did you know that paying off your high-interest debts (e.g. your credit card balance) can save you more money than investing? Unless, of course, you can find an investment product that can yield an interest higher than your credit card or time travel to 2007. It would also be a good idea to get a high interest savings account to protect and grow your savings.
Tip #7: Do it yourself
If there are problems in your house that need fixing, or any sprucing projects that need to be done, try tackling it yourself instead of hiring someone to do it for you. You can save money on costs especially if they’re recurring. For instance, instead of hiring someone to mow your lawn or shovelling snow, do it yourself—you get exercise too.
Tip #8: Take good care of your stuff
The idea is this: if you take care of your stuff, it won’t break easily, which means you won’t spend as much. If you take good care of your car, you can resell it for a better price and save money. Same goes for your clothes, electronics, or whatever other possessions. Remember: maintenance is cheaper than repair or buying an entirely new one.
Tip #9: Quit trying to impress others
Why do we spend a lot of money on expensive things like fancy smartphones or designer labels when there are others that are cheaper and get it done just as well? Because we want to impress other people. If you quit trying to impress others, your budget on expenses such as clothes, cars and gadgets will drop.
Tip #10: Spend less than you make
Here’s the best tip we can give you: spend less than what you make. This would allow you to save money, get rid of your debts, accumulate wealth and do more with your life. But to spend less, you’ll have to cut down on your costs and have a budget for everything. However, if you can pull this off, you’ll be much happier since more opportunities are open to you.