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The richest people became financially independent because they knew the value of money and every penny, not to mention the larger amounts. Saving is an essential element of financial planning that will help you save money where you didn’t have to spend it. The following 18 tips will help you in your life.
- Don’t neglect the small money. The set aside 50 cents per day can turn into $200 per year.
- Keep track of your expenses. Check bank statements and other payment documents at least once a month. Thus, you will understand what you have spent your money on. Ask yourself if it made sense to redirect some money spent to your savings account?
- Never make impulsive expensive purchases. Think at least 24 hours before making each desired expensive purchase. Using this principle will reduce impulse purchases and save more money.
- Use credit and debit bank cards wisely. To reduce loan payments, try to limit purchases on credit to such amounts that you can fully cover at the end of the month. When paying with debit cards, don’t spend more money than is on the card account (overdraft). By following this recommendation, you will have more money left for your savings account.
- Looking for an efficient way to manage your finances? At the beginning of the month, make a list of your planned purchases. At the end of the month, update your records and complete your purchases. Thus, you will see what your money is spent on.
- Try the practice of preventive dental care. Good care and regular check-ups will help you avoid high dental costs and discomfort associated with dental treatment.
- Most people don’t keep track of their expenses and don’t notice the moment when expenses become higher than the budget allows. To improve control over your spending, allocate the necessary finances for travel, food, rent, Forex trading, etc. in separate envelopes. This helps to avoid spending on unnecessary things, and everything that remains outside the envelopes can be used for savings.
- Take advantage of discounts and loyalty programs available through your employer. For example, the company where you work may have special discounts on computers, fitness centres, cinema, courses, etc. Check your corporate intranet, talk to the HR department. And don’t forget that your best investment is in your education. Try to learn something new about what is market volatility from the Forextime blog.
- Another way to instil financial discipline in yourself is to allocate an amount equal to your spending on your weaknesses. Take a cookie box and put aside amounts equal to your spending on beer, cigarettes, palm wine from Nigeria, exotic coffee, etc. If you don’t have enough funds to allocate this amount, then you should not buy a package of super low-fat almond for $80.
- Divide the purchase price by your daily payment. For example, the pair of shoes you want costs $100, and you earn $20 per day. Ask yourself, are these shoes really worth your 5 days of work? In the long term, it helps to choose things smarter.
- Replace expensive coffee drinks with natural coffee. By buying coffee instead of latte or cappuccino, you can easily get savings of $5 per day, which will help you save $1,800 for your reserve fund in a year.
- Take your lunch to work from home. Don’t overuse food outside the home. Visit a café or restaurant no more than once a month.
- Make a shopping list before going to the store. People who come to the store with a list make significantly fewer unplanned purchases compared to those who come without a list.
- Don’t pay for space you don’t need. The desire to buy a huge house or flat is a common trend nowadays. A more rational approach to the use of space will help you rent or buy a smaller area of a house or flat and not pay for extra square meters.
- Choose housing as close to work as possible. Reducing the car’s annual mileage by 10,000 km saves significant sums on transportation costs.
Family and Friends
- Plan your budget and gifts wisely in advance. Thus, you can think about the best gift, which will be not only the most useful but also not the most expensive.
- Set the maximum budget for gifts in the family circle. This will not only optimize costs but also avoid awkward moments associated with the price of gifts.
- Choose a family picnic over a restaurant gathering. This will save you a lot of money.