7 tips to save money
By Parasolla | Updated on Mar 27, 2023
7 tips to save money
Saving money is one of the most important factors to manage your money correctly and improve your life quality.
A lot of people look for the best strategy to save money and achieve their financial goals. But the problem is that not everyone knows how to save money in the right way.
In this article, we are going to give you 7 tips to help you save more money to achieve your financial goals.
1. Make a monthly plan
To achieve anything in this life, you need to have a plan. And, the first step to control your money is to create an appropriate plan.
Your Plan must include all monthly financial movements such as monthly expenses, house bills, car payments, etc...
Also, you need to specify the exact amount of money you can save and you have to put it separately.
In this way, you will be able to track all your expenses accurately and control your money wisely.
You should know that every month is an opportunity to improve your plan to save more money. So, revise your plan every month and try to find new ways to grow your savings.
2. Buy needs not wants
There is a common mistake that a lot of people do when it comes to spending money.
They buy what they want and leave what they need!
As Warren Buffett said: 'If you buy things you do not need, soon you will have to sell things you need.'
So, you should be aware that your spending affect your budget directly and it will prevent your from saving money.
To be able to control your money and save it you have to know the difference between needs and wants and you should know when you must buy something and when you can ignore it.
Needs: refers to an individual's essential requirements that must be bought in order to survive.
Wants: refers to goods that you want to buy to have temporary pleasure.
For example:
Your food is a need but going to a five stars restaurant to pay more money for the same food is a want.
There are no constant list of need and wants because this issue is different from one person to another depending on the net income and the financial situation.
3. Record your daily expenses
The best way to spend less is to track your daily expenses.
In this way, you will be able to know the most worthless things you buy and stop buying them. Also, you can find better ways to spend money wisely and save more in your budget.
All you have to do is to make a note on your phone or computer and record all your daily expenses.
If you have a laptop or computer, you can make a table in Excel. This will make it easier to calculate your expenses daily and monthly.
4. Set goals
To save money, you must have goals to motivate you when you want to give up.
You need to specify two types of goals to get the results you want:
Long-term goal: it refers to the goal you need to achieve after six months, a year, or even five years.
For example, I should save 1000 $ a month to be able to buy a car after a year.
Short-term goal: it refers to the goal you need to achieve today, this week or this month.
For example, I shouldn’t spend more than 200$ today to be able to save 1000 $ this month.
The short-term goals are the basic steps to achieve the long-term goals.
5. Prepare your list before shopping
Shopping is the easiest way to spend more money because you go to a place full of skillful marketing specialists.
To avoid spending more money, you must write a list of all your essential needs on your phone before leaving the home.
This will identify the approximate amount of money you can spend and protect you from unplanned purchases.
In addition, it would be a perfect idea if you could specify the shops which have discount offers to buy cheaper materials.
6. Seize the Opportunities
When it comes to discount offers, you must seize the opportunities to spend less and get more.
But, you must be aware that seizing discount offers is only for things you NEED to buy.
For example, if you need to buy shoes because yours is old and you found out that Nike has a 30 % discount on its boats for three days. This is a perfect chance to go to Nike and buy shoes NOW!
But if you start buying things just because they are on discount, you will buy a lot of worthless things.
These simple strategies can save you some extra money.
7. Cancel unnecessary subscriptions
The rule here says: You don’t use it, Stop it.
You can cancel all unnecessary subscriptions to save your money and activate it again when you need them.
All you have to do is to monitor your subscriptions every month such as sports club, Netflix, etc…
For example, if you don’t have enough time to go to GYM this month, you can cancel the subscriptions for this month and re-subscribe later when you have time.
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