Money Saving Tips that Work

5 Simple Money Saving Tips that Work

Saving is one of those habits very few of us get to achieve. To be able to save money successful, firstly, you should set saving goals.

Before you can achieve your saving goals, it is advisable to have something specific you are saving towards – a car deposit, improvements on your house or retirement. Whatever the goal, if your can visualize what you are saving for, you will be in a better position to achieve your goals. Follow these 5 simple ways to get your start:

ONE: Eliminate Your Debt

If you’re trying to save according to your budget but you are still battling with debt, sort that out first. The cost of debt weighs down on your money saving ability. A great way to start saving is by paying off your debt. Once you’re done paying your debt and you’re free from debt interest rates, it will be much easier for you to commit that money towards your savings.

TWO: Make Use of Seasonal Clearance Sales

Imagine buying winter clothes in winter compared to buying winter clothes in summer, buying them in summer will be cheaper than buying in winter because of the demand and the fact that shops are trying to clear out the previous seasons’ clothes. So buy things at the right time and save more money.

It may not be the coolest advice you will receive for your wardrobe, however you are better offer with more money to spend on the important things in your life that grow in value – like property and other tangible assets.

THREE: Luxury Items are Not A Necessity

Remove luxury things from your budget and fancy items, they don’t help you save money, that’s just another way to justify buying things you do not need. Regarding luxury, save money by dropping several overseas trips and explore in your backyard. Rather take time to drive to nearby vacation spots rather than spend thousands of overseas airline tickets. Everybody loves a good road trip anyway.

Should the bug to travel to the best and most expensive places, do yourself a favor and make that saving goal. While you’re at it, shop around for the best prices with travel agents for off season travel.

FOUR: Save before your Start Spending

Don’t eat out. You’ll realize the more you eat out, the more unhealthy foods you eat. People spend once they get money but when the money is no longer available they start coming with plans on how to save money.

Before you dish out on that lavish dinner date, make sure that you have paid yourself first. Saving is the equivalent of giving to your future self by limiting your current spending.

FIVE: Avoid Bad Habits like Smoking

If you’re a smoker, you would save a lot of money if you stopped. Yes it isn’t easy to stop smoking but let’s paint the picture. Say you smoke 5 cigarettes a day. This means that you buy a pack of twenty every 4 days. A pack of twenty is roughly $10. So you buy about 2 packs a week. That is about $20. Given there’s four weeks in a month, times that by four, that’s $80. That already can be a monthly installment towards a savings goal like a car or an investment property.

Moving on, in one year, you spend roughly $960. In five years, you spend about $4800. That could be money you could be saving towards your children’s education, retirement, emergency funds etc. As a smoker, the best way to try to stop smoking is decrease the amount of times you smoke a day. As the days go by you’ll be smoking once or twice a day, then before you know it it’ll be twice a week and so on.

Keep your money where you need it and on how it can work for you in the future.