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In the economy we live in today, it is always advisable to save as much money as you can. Sometimes we are just a stock crash away from another global financial crisis. As the saying goes a coin saved is a coin earned. Learning to stretch your income could prove to be a very important habit that you will never regret. After-all you have worked hard for every last penny.
There are many every-day habits you can develop to save money. Even when the savings are small and seem insignificant, over a period of time they could add up to a considerable sum. By saving you are able to improve your financial situation which leads to a less stressful and generally happier life.
You might be shocked to find out how easy it is to save. Simple habits such as making frugal purchase decisions, spotting a bargain and reducing your debts will go a long way and help you save as much of your income as you can.
We are always been on the lookout for tricks and strategies that will help you save a pound here and there. Today we will let you in on seven money-saving hacks everyone should know.
One of the reasons we do not save as much as we would like to is because most of us save last. Come payday the first things we do are pay bills then set aside money earmarked for expenditure and save last. Taking this approach relegates savings to the least of your priorities and guarantees missed savings targets.
To avoid this, try treating savings like bills. Once you get paid, save first, pay debts next, pay bills and finally spend. This allows you to adjust your spending habits to your saving goals. If you find it hard to do this, automate your savings. When your salary is paid the bank will transfer a set amount of money to your savings account. This is a service most major banks now offer.
Every once in a while we come to extra money. Whether it is income from your side hustle or a raise at work. While it might be tempting to buy those shoes you have been looking at online, a better option might be to save this extra amount and make a spending decision later.
Most likely you will not even notice any significant change if you choose to spend it. Saving this extra income ensures your rate of saving increases without adjusting your spending to your higher amount of income.
Have you ever thought you had money only to look into your account and find way less than you thought there was?
Well, this is a product of haphazard spending. Make a point of noting and even recording your expenses. Doing this helps you in two main ways. First, you know exactly how much money you have spent and how much is left. Secondly, recording your expenses allows you to identify non-essential expenses that you can do away with. From this information, you can adjust your expenditure to allow for more savings
Have you ever noticed that it is easier to spend money from your credit or debit card?
Carrying your money in larger bills also reduce your overall expenditure. Larger bills are harder to break and keep you from making impulse purchases. Smaller bills and loose change make it easier to buy stuff on a whim.
Impulse buying is one of the biggest reason why you don’t save as much as you should. If this is one of your weaknesses then one of the most effective ways to kick it is to create a waiting list. Whenever you feel like you really need to buy something, put it on the list. If after two weeks you still feel like you really need it then, by all means, go out and buy it. This list helps you evaluate a purchase and its merits. It will not only help you eradicate unnecessary expenditure but it allows you to identify a cheaper substitute.
Most of the time there is a cheaper option. While it is true you get what you pay for, high-quality goods aren’t the most expensive ones. Goods from established brands are bound to be more expensive. Learn to buy and use high-quality generic products. They are just as good but cheaper. Teach yourself how to bargain.
You would be shocked to see by how much you can reduce your expenses if you just bargain for a better price. Salesmen are usually willing to give you better prices to close the deal and achieve the quota if only you know how to work them. For flights and events booking your tickets in advance will get you better prices.
It is only human to get attached to your belongings. Over time they lose their importance and we only hoard them for sentimental value or just because you don’t know what to do with them.
However, some of these items may be of use to someone else. Selling them not only yields extra cash but it also frees up space in your house. Sort your stuff and sell them at the next car boot sale. Now that you have unexpected income, remember to save it instead of going out and getting more stuff to hold on to.
Saving money is not as hard as it might seem. Learning how to set aside a chunk of your income is only part of the equation. The other parts involve reducing your expenses and even turning items you no longer use into money.
This money can then be set aside for a rainy day, retirement and investing. You will never regret saving, but you can be sure you will regret spending especially if you did not have to. Follow the above tips and slowly you can watch your savings grow.
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