We at The ReviewA are well-aware on the importance of saving money - and we do know from experience – that it can be extremely difficult to cut down on expenses to be able to save money. Saving money can help you become financially secure and it also provides a safety net in case of an emergency. It gives you peace of mind – something we all need.
Below are 5 basic but essential tips on how to save money:
1. SET UP A BUDGET
A budget is a way of being intentional about the way you spend and save your money. Budgeting is the most basic and the most effective tool for managing your money in order to save money. When you have a budget, you control your money and not have your money control you. It also helps you decide if you want to sacrifice short term spending like buying coffee every day in exchange for a long-term benefit like a cruise holiday. Having a budget will help you save money as you will be able to distinguish your needs from your wants.
2. RECORD ALL YOUR EXPENSES
Once you have drawn up a budget, be sure to keep track of all your expenses – that means every coffee, household item or even clothing items you purchase. By recording all your expenses, you will be able to figure out how much you spend. Once you are aware of how much you actually spend during a month, you will be able to compare it with your income amount and if your expenses are higher than your income, you know to cut down on a few expenses so that you can start saving.
3. SET SAVINGS GOALS
Set goals for yourself that you will be able to reach. Be realistic with your goals so that you will be able to achieve them eventually. To get started, choose an amount of money to save, that you know you will be able to reach. Once you have reached that goal, set another higher goal and so on. If you are consistent, after a couple of months, saving money will become natural to you.
4. BE PATIENT WHEN YOU WANT TO BUY SOMETHING
If there is something that you want whether it is a clothing item, household appliance or even a new pair of shoes; be sure to not buy in a hurry. Be patient and browse around the shops until you find the item that you are wanting, at an affordable price for you. Impulse buying is expensive. Practice a little patience before large purchases. You’ll save money by finding a lower price during that research time or deciding not to buy after all.
5. WATCH YOUR CAR EXPENSES
Believe it or not, one of the most effective ways to save money can be done through your car. Petrol is frightfully expensive these days, so take every opportunity you can get when it comes to saving petrol (saving petrol = saving money). Plan your trips ahead, and you may find that you can do many errands in one area during one trip. If you need to go to the mall, only go on your way home once you’ve fetched your child from school. All these little changes can make life a whole lot easier and you’ll be surprised by the amount of petrol that you save, and initially, you’ll end up saving money!