Save Yourself
Saving money is not a one-time task; it is a habit that, like any other habit, must be repeated for personal growth. In this case, saving money will help with your financial growth.
But why form this habit? Why must we save money?
Why Save Money?
Money is scarce when you need it the most, such as during emergencies. Having liquid cash during such times can provide a sense of security. You should also save for bigger purchases in life, such as a car, home, and weddings.
Debt should not be considered a tool and should not be used. Debt will keep you poor, but savings will give you freedom.
So, here are my five tips on how to save more money.
Money-Saving Hacks
Here are my four creative ways to cut down the expenses and save some money.
Remember the acronym ABCD (ASK, BUDGET, CUT, and DELETE) to help you cut down your expenses.
1. ASK a few simple questions before making any purchase.
By asking these questions, you might save a lot of money. If you don’t ask, the money is guaranteed to be gone. Remember, the best strategy for earning more money is to not spend what you already have. Before making any purchase, I ask myself the following questions:
- Do I really need this?
- Why am I making this purchase?
- Will this purchase bring me happiness?
- What if I save and invest this money instead?
- Do I have the money to make this purchase or will I need to borrow money?
2. BUDGET
Budgeting is an essential financial planning tool that helps individuals manage their money and avoid overspending. However, many people find budgeting daunting and overwhelming. In this text, we will discuss some basic budgeting tips and the benefits of budgeting.
Budgeting makes most of us feel that we don’t have enough money, which is often true. So what do we do? We avoid it. To get over the fear, we must face it. Budgeting is a must to face the fear of feeling that we have less money.
Budgeting means giving our money a home; making sure we have enough for our necessities, emergencies, and future. Whatever is left after that, we can enjoy and should spend on things that bring us joy.
Budgeting is also a regular task that we should revisit every month and revise based on our current situation.
Here is how I started budgeting.
1. Tracking Expenses: I started tracking every dollar I spent three years ago and recorded it in a Google sheet. This simple step helped me analyze how much money I spent on groceries, commuting, and other daily expenses.
2. Calculating Average Expenditure: With this data, I could estimate how much money I needed to spend on necessities. For instance, my monthly expenditure on groceries and eating out was about $600.
3. Creating a Budget: Now, I have a dedicated groceries account where I contribute $600 directly from my paycheck.
How does this help me? Well, I no longer worry about finding money for my necessities. Budgeting has also allowed me to know how much money I can spend on shopping without guilt, which is something most people want to do.
3. CUT your unnecessary expenses
Money is a tool that helps us navigate this complex world. Money also allows us to enjoy and fulfill our dreams. So why not cut those unnecessary expenses if we can and save more to truly use the money for life experiences?
Here are some tips to cut those expenses.
Review Monthly Expenses
- Conduct a monthly audit of your expenditure for the last 3 months to unearth recurring spending.
- Highlight all necessary and unnecessary expenses.
- Evaluate where you could make reasonable cuts.
Eliminate Subscriptions
- Cut down on digital subscriptions you don’t use.
Cut Your Car Expenses
- Reduce petrol consumption by using low-carbon fuel or more economical cars.
- Perform regular car maintenance, like oil changes and tire rotations, to avoid costly repairs.
Reduce Eating Out
- Buy groceries and cook your own meals instead of eating out at restaurants.
- Meal prep for the week to prevent eating out during lunch breaks at work.
- Reserve eating out experiences for special occasions and avoid doing so regularly.
4. DELETE shopping apps from your phone
Shopping apps are not a convenience, those are programmed to make you spend more money.
Add friction to any habit that you want to break and you will break that habit. Delete those shopping apps if you struggling to control your impulse purchases, try it for a month. I am sure you will spend less money and find out that you don’t need that next fancy thing after all.
Here are my shopping tips to control those impulse purchases.
1. Delete shopping apps from your phone (if not forever may be just for a month or two)
1. If you must have applications then at least stop all the notifications
2. Use written shopping list even for your digital purchases before you hit that QUICK BUY button
3. wait before you buy, put it in a cart, and don’t buy it for a few days, you might end up not buying it
A deal might be really good at the moment but how many such deals throughout a day that you shop matters too. End of the day you might have shopped for 100s of dollars.
Another tip: I don’t want to recommend but I wanna share if None of the above works “BUY and RETURN” [PLEASE do not follow this advice if you are lazy at returning and not following return policies]
Conclusion
Saving money is an important habit to develop, and it can be done in a variety of ways. The tips in this blog post can help you get started on your journey to financial freedom.
Here are some key takeaways from the blog post (4 creative money saving hacks):
- Ask yourself a few simple questions before making any purchase.
- Budget your money and track your expenses.
- Cut your unnecessary expenses.
- Delete shopping apps from your phone.
Following these tips can help you save money and achieve your financial goals.
Here are some additional thoughts on the importance of saving money:
- Saving money can help you weather financial storms, such as job loss or medical emergencies.
- Saving money can give you the freedom to retire early or pursue your dreams.
- Saving money can help you build a legacy for your loved ones.
No matter what your reasons for saving money are, the tips in this blog post can help you get started. So what are you waiting for? Start saving today! and Remember ABCD (ASK, BUDGET, CUT, and DELETE).
Recommendations
- If you would like to read the best books about finances then you must read this blog post: Best Books for Financial Education
- If you want to learn where to invest then read this blog post: Best Index Funds for 2021 and the future
- Here is a youtube list of videos for your FIRE journey: Best Videos on Money, 100% return Guaranteed
