How to save money: 10 super simple money-saving tips
The double genius of the fixed wage increase and rising costs of living, especially housing, has made it more difficult than ever for many United States to save money.
Here are some 10 things you can do to increase your chances of successfully saving money. Not only for your short-term goals such as holidays, but also for your long-term goals such as creating a home deposit:
# 1. Budget plan
A budget is at the heart of any savings plan. Budgeting helps you prioritize your spending and find a balance between spending and savings for the whole year.
MoneySmart can calculate all your regular expenses such as rent or home loan, transportation, insurance and electricity by checking your credit card statements, invoices, bank statements and receipts. You then deduct these expenses from your income - your full or part-time job or temporary job, your pension, state benefits, child support payments, investments, etc.
"If you are spending more than you earn, ask yourself what you can cut or reduce."
Ask if you can cut or reduce it. "When setting your money priorities, think about what items you need for your basic living expenses and which ones are extra or you can do without it if you need to save some money," MoneySmart said. It is recommended that you update your budget at least once a year. Or more often when your circumstances change significantly (eg finding or losing a job, having a baby).
If you're spending more than you earn, ask yourself what you can cut or reduce.
# 2. Track your spending
With respect to the credit card, we can fall into the trap of thinking that spending for big things is what gets us in trouble, while the little things often cost us more. Therefore, it's important to keep track of your daily expenses so you don't live beyond your means. Your bank statement will tell you how much money has been deposited in your bank account and how much has gone. You can then compare it with your budget to see if you're sticking to it. You can then specify the fields you can save.
The thought of having to keep track of our expenses can prevent sudden purchases.
# 3.Pay your credit card
With credit card rates of 25 percent or higher in America, it is easy to see how sudden use of a credit card can undermine even the most modest savings goals.
Paying your credit card fully and on time is the best way to avoid interest charges and late fees.
MoneySmart recommends setting up a direct debit to avoid missing your repayments. And you must pay more than the minimum required, otherwise you will pay much more interest. If you can't be trusted with a credit card, Canstar suggests taking a leaf out of your grandparents' book: “No credit, no EFTPOS. Just withdraw the money you need for the week and keep it permanent. "
It might sound counterintuitive given the above advice, but Andrew Schrage, co-owner of Money Crasher Personal Finance, thinks that one creative way to save money is to use your credit card more.
But with one condition: "This tip only applies to those who pay their balances on time and in full each month," says Andrew.
“Find a credit card with a great cashback program and redeem your rewards every few months, and then deposit that amount into a bank account that you reserve for savings only.
# 4. Open a savings account
By restricting access to your money, savings accounts can give you a higher interest rate than a basic trading account.
Savings accounts are a place where you can put some or all of your optional income - the amount remaining after paying for personal needs and tax - and unexpected situations (eg tax refund). You can avoid the temptation to spend this optional money by setting up automatic, scheduled transfers from your main account (trading account) to your savings account.
Kylie Travers, CEO of Occasio Enterprises, which owns and operates several personal finance websites, says rolling up your trading account balance is a way to earn extra money for your savings account.
"Every time you check your bank account, roll it down and transfer the amount to your debt or savings," she says.
“If I was logged in and I had $ 109.35 in my account, I would transfer $ 9.35 to my savings account (or debt when I get it) and round it to $ 100.
"For some months it's this, without much effort a few hundred people got paid and I didn't miss out on those small sums."
# 5.Focus on recurring expenses
While every little bit helps, it's your big, recurring expenses that provide the most efficient ground to increase your savings, the team at The Thrifty Issue says.
“Look at your bank statements and look at everything you spent the last year with money.
“So see how much you could save on these by refinancing your home loan, comparing insurance providers and other services, for example.
"If you spend a day reviewing everything, you could save thousands."
"While every little bit helps, it is your large, recurring expenses that provide the most efficient ground to increase your savings."
According to Choice, shopping for a cheaper energy retailer can cut your energy bill by almost half; You can compare electricity and gas offers on the Australian Government's Energy Made Easy website. Insurance costs can reach several thousand dollars a year, so a 10% saving could equal hundreds of dollars saved.
Reducing your fuel costs requires constant attention: MotorMouth and accc.gov.au will tell you which service stations have the lowest prices and will fill the best day of the week respectively. Even if you are satisfied with your mobile and internet service providers, ask them if they have a cheaper plan. This is information that existing customers do not always volunteer
# 6.Check your impulses
Credit cards, ATMs, and online shopping make it easier than ever to spend money. Especially in things we want more than need; The degree of our submission to temptation typically depends on our willpower. Studies have shown that self-control is like a muscle that gets tired from use.
Ironically, it is the will of the poor customers that tends to run out the most. This is the result of being faced with repeated, difficult financial decisions.
"It's not that the poor have less will than the rich," says the American Psychological Association.
"On the contrary, for people living in poverty, every decision - even whether to buy soap - requires self-control and is immersed in a limited pool of will."
Canstar, if you see something you want, wait at least a day before buying - 30 days if it's a non-essential big purchase. You can find the impulse transitions. Another way to shorten the purchase impulse is to calculate how many hours of work the purchase price represents; You will probably think the item is not worth it.
# 7.Fix your bills
'Bill correction' is a payment system offered by service providers (electricity, gas, water) where you pay them biweekly or monthly, without having to pay the entire bill at once.
It protects people from tight-budget bill shock and from getting into debt and potentially paying interest.
Richard of Simple Living Australia recommends taking a similar approach to your daily finances: regularly spending money to pay large bills on the way.
'Bill correction' is a payment system offered by service providers (electricity, gas, water) where you pay them biweekly or monthly, without having to pay the entire bill at once.
"This allows you to save over time instead of paying annually for certain invoices - by taking advantage of discounts to pay bills and bonuses in one go instead of installments."
MoneySmart recommends adding up the total cost of your large bills for the year. This way, you can calculate how much in advance you will be deducting each payment.
If you set aside this amount every time you get paid, you always have money to cover your next big bill.
# 8.Plan your meals
Kalpana Fitzpatrick, founder of MummyMoneyMatters.com, says meal planning is one of the easiest ways to save money. "If you know what you eat during the week and shop accordingly, there will be no need for random visits to the supermarket. Extra visits will cost you more money and even waste food."
Choice says it will be even easier for you to stay within your budget by purchasing all your essentials from lower-priced stores like Aldi. If a family of four does this, they won't have to spend more than $ 21 on their weekly shopping. Roughly $ 300 less than a household of this size would spend. Do this once a month and you'll save around $ 3,600 in a year.
# 9.Be a 'mixed consumer'
If you are brand loyal - someone who constantly purchases a product or service - be careful.
Probably, the seller in question knows that you are less price sensitive than most potential customers. They may be taking advantage of your loyalty, or worse, they may be taking you lightly by charging you uncompetitive prices.
Don't let your emotional bond with a seller get in your way, start looking for a better deal elsewhere.
Only the threat of leaving can ask your current supplier for a better offer. They will understand that retaining existing customers is often much cheaper than acquiring new ones.
And don't despair if they don't give you a discount or free upgrade, for example. Most likely, there are other companies lining up to give you a good promotional deal.
Don't let your emotional bond with a seller get in your way, start looking for a better deal elsewhere.
In short, Michael Ginsburg, founder of Spending Hacker, says you have to be a "random consumer".
"Being loyal does not get you a better deal, but it will almost certainly cost you more."
"Make sure you don't have brand loyalty and are willing to switch when a competitor offers better value."
# 10. Avoid the poverty mindset
Many people view savings as a virtue - not as careful and wasteful of money and other resources.
Emma Johnson, founder of WealthySingleMommy.com, says that while saving is an obvious way to save, we shouldn't be too frugal.
“Ultimately, the only way to progress financially is to focus on earning, saving and investing,” says Emma.
"Focusing on overlooking the grocery and electricity bill only gets you so far and leaves you with a poverty mindset."
Writing for Getmotivation.com, Randy Gage says, `` The poverty or deprivation mentality is one that is preoccupied with scarcity of money: everything one does not have and cannot receive. ''
These people tend to have self-limiting beliefs and make decisions based on fear of loss or failure. Rather, people with a wealth or abundance mindset base their decisions on what the potential benefits are.
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