Top 5 tips on saving money at home

by Josh Biggs in Finance on 16th May 2021

What is the best way to save money? Not to spend it. Let’s face it. Not spending money in the world we live in is impossible. After all, money is how we eat, live, and survive; attaining our basic needs, medical health care, and even education require money. When we talk about saving money, we are not talking about stashing away all your income but spending what you need and keeping away some for a rainy day or future investments.

If there is anything the 2020 global pandemic has taught us is that anything can happen. So it doesn’t hurt to have some money stashed away that you can fall back on when the economy goes to trash or you no longer have income coming in. Saving money does not require you to be a high-earner. Even with a low-income job, you can save a couple of dollars annually; all you have to do is take the first step. Whether you are beginning your saving journey or trying to get back on track with your saving habits, implementing strategies will help you. 

  1. Track your spending

How can you save when you have no idea how much you spend? Nobody tells you this, but the foundation of saving is in what you spend and not what you earn. High earners could have a lot of money coming, but their savings become little if their spending is too high. To stay on top of your spending, you should track how much money is going out of your account. Find a tracking system that works for you and dedicate the first three months of your journey to track your spending. Without judgments, note down all the money leaving your account. 

  1. Review and cut down your expenses

With a full report of your spending, analyzing your expenses should be easy. You may not notice the few dollars you spend on a hot chocolate latte at your favorite coffee shop every morning, but the expense is no longer a few dollars at the end of the month. Look over your spending report and highlight all the expenses that can be cut down. Can you reduce how much electricity you use or how many hours you spend on the phone? Is that premium Netflix subscription realistic when you spend most hours of your days at work? These questions should give you an idea of what expenses are essential.

  1. Take advantage of free gifts

Did you know companies have programs that reward their clients for loyalty? Well, now you do. Through loyalty programs, you can enjoy gifts and services without spending a dime. And who does not love free stuff? Freebies from your favorite clothing store, gym membership to the grocery store can allow you to stock up on items and enjoy services without paying. Some companies reward you points for shopping with them while others for simply providing feedback on their services. Don’t miss out!

  1. Deal with your debts

Whether it’s a mortgage or that student loan hanging over your head, we know how bothersome debts can be. Some debts are too big that clearing them at one go is impossible and not to mention unrealistic. But you also cannot ignore them because, with time, they accumulate interest which means more financial burden. So, instead of sweeping your debts under the rug, face them head-on. Develop a plan which you will use to pay the debt over time. Allocate a percentage of your income to minimizing your debt, and with time, you will see progress. 

  1. Shop around for better deals

If you are trying to save, buying for the first store you walk into is not always financially smart. Thanks to online shopping, you no longer have to run from one store to another, comparing prices. Browsing through different sites comparing prices of the same item can save you several bucks. When you secure good deals and amazing discounts, you will be grateful for the little surfing you did on the internet. 

Passing on that long-awaited vacation to Bali may not be fun, but it is sometimes necessary. That said, there are two secrets to saving; planning and goal setting. An effective plan allows you to save while remaining practical to your needs. At the same time, goal setting can serve as a motivating factor to attaining your financial objectives. Crossing off that savings target off your financial plan is not just satisfactory but also the first step to securing your future. 

Categories: Finance