Money Saving Tips: Best 6 for 2023
To grow financially, you need to know which money saving tips works for you. Saving culture is one of the best strategies to improve your financial status steadily. Below are tips on how to develop a saving culture
Money Saving Tips
1. Assess Your Sources of Income Sources
You cannot save what you don’t have. It would help if you had earnings to save. Depending on many demographic factors, sources of income vary from one person to another. Some people could be making money given by their relatives, and others are making money from their employment and some from their businesses.
Whichever the source the baseline is, you are earning something. In cases where you have more than one source of income (which is ideal), assess which sources bring in the most income and arrange them in that order.
Weighing incomes helps you clearly picture the most sensitive source you cannot afford to lose. Furthermore, it helps you understand where the largest of your savings can come from.
2. Assess What You Spend On
Take time and analyze what earns you, how much, and the timeframe. Consecutively, analyze where and how you spend. Here, you can probably use a table of your demands. You should assess what is basic to you, how much to spend on necessities, and what you spend subjectively.
This way, you are likely to ascertain what you can give up on spending, what you reduce the amount spent on, and what you can live without. The main goal of this is to free as much money as possible.
By freeing money, you are trying to lower your demands (not to a point where you would be suffering but to a level where you have optimized their spending patterns).
Having flashbacks of what you bought and never needed is one way to assess the right direction of optimal spending. Such purchases could be something you rarely use or, at times, that you have never used. You can list them down and if need be, try to calculate how much you could have saved.
However, do not blame yourself when you realize how much you could save. Just take it as a lesson and consider yourself wiser and more knowledgeable. This will be your reference point in any of your future spending or purchase.
3. Spend Objectively and Control Your Emotions
Spending your money objectively without being controlled by your emotions is among the best money saving tips you can exercise. After you have assessed your income sources, your emotion, and your mistakes in spending, your will, of course, be willing to change for the better. You will, of course, adjust your sending objectively.
The big question you should be asking yourself at this stage is, which feelings contribute to my unnecessary spending? How do I feel when I am likely to spend wrongly? Why does it happen so often?
Let’s look at some strategies that can help you to change your emotions and overall spending habits.
a. Take yourself accountable
Do not blame yourself for a previous financial mistake. However, start to take yourself accountable for any penny that you spend. You have already learned, and if you fall for the same trap again, you have yourself to blame.
You should be aware that you’re setting yourself up for frustrations if anything is screwed up due to your bad spending habits. Thus, be careful with your friends and how they will likely affect your spending habits.
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b. Avoid the Ads man
You think you need some things you don’t because you were exposed to them. You probably could not have needed such stuff if you were unaware they existed.
But the ads man will expose you to more than you can think. He will make you feel a certain urgent demand to buy a thing of little or no value in your life. The ads man makes you demand something whose need has not been triggered organically but whose need has been triggered by the fact that you have now something does exist.
c. Lessen your impulse buying
Impulse buying implies that you could be buying something important, but you could be rushing. By rushing, I mean you haven’t assessed its close substitutes, pros, and cons, other market prices of the same products, or other market factors of consideration.
Make a plan when spending and find a way to save a penny or two. It will not cost you to do prior planning before a purchase. Expose yourself to different dealers and get to know their quote prices.
Just decide never to buy anything without planning. If you avoid impulse buying, you will be tempted at some point, and it might be so frequent in the long run.
However, impulse buying is quite hard to stop because, at times, we buy to explore. In other cases, you get “excellent discount deals” that you presume will never come by in the future. It is a matter of balancing when impulse buying is the most necessary and justified.
If at all one cannot completely stop it, make it less frequent. It should leave you with more coins to save.
4. Set Goals of Why You’re Saving
Everyone can start saving but keeping the saving habit is a story by itself. To keep up with the saving culture, you must have an end goal(s). With a goal, you can save because you know what will be taken as opportunity costs and what to spend on.
Saving should not be done blindly without an intention. The end goals should not be too easy to realize, and they should not be too hard to realize.
A goal that is too easy to realize leaves you with more than enough money to go spending around. Therefore, you save below your potential and capacity to save. A goal that is too hard to realize makes you lose hope. You might feel that you will never save enough at your current income level and give up your saving culture altogether.
5. Update Your Saving Plan When Income Changes
Income might increase or decrease. Savings would cushion you from fluctuating levels of your income. Remember, irresponsible spending because of an increase in earnings is not wise.
Whenever your income margin has changed, consider updating your saving plan accordingly. This is to avoid hurting other areas that need your financial attention and responsibility.
6. Monitor Your Saving Plan and Expenditures
Monitoring a saving plan helps you know whether it is sustainable. The first draft could be prone to errors. Monitoring and updating it makes it more sustainable. You need to monitor your spending habit alongside your saving plan.
Monitoring your expenditure and saving helps you identify what could be missing in the name of saving. Saving should be in the interest of making life better and not making it unbearable in saving.