As we saw previously, saving money is essential for one’s life. However, depending on one’ situation, it can be more or less complicated to achieve. Thus, in this article, we’ll cover the best ways to save money. We’ll see daily habits, but also ways to save on larger expenses.
Budgeting your Personal Finances
The best way to save money is to start budgeting your personal finances. To achieve it, we suggest downloading our Personal Finances 101 course for free. It is available in this article.
Budgeting your personal finances will allow you to have a better grasp on your monthly revenues and expenses. Once you can monitor your spendings efficiently, you can set savings goals more easily.
Cutting the middle-men
The reason why most products are so expensive is because they are manufactured. Manufacturing products involve several middle-men, including marketing which can reach 50% of total budget. Indeed, you have no control over the budget spending of a specific product you like to buy. However, you do have control over your money and how you spend it.
Thus, we recommend you buy as little manufactured product as possible. To do so, you can buy your meat and vegetables directly to the producers. Furthermore, you can cook and craft your own meals instead of buying ready-made food.
Reducing leisure expenses
When looking to spend less money, you may often come across this advice to reduce leisure time. While it is true leisure is expensive, we won’t recommend you cut it all off. However, you can make a few sacrifices. For instance, do you need a yearly membership to the theatre while you spend most of your evenings at home watching Netflix?
Another example of cutting leisure expenses can be inviting your friends and family over for a nice dinner instead of taking them out to the restaurant. Often, cheaper solutions are underrated, but can be as much or even more fun that more expensive ones!
Thinking thrice before your buy
This way of saving money might be a bit of a brainer at first. However, once you get a hold of it, you’ll start applying it without thinking. The idea here is to make sure you’ll actually use what you buy.
Some of us might be compulsive buyers or shopping addicts. This can cause serious trouble on one’s personal finances. The technique is to ask yourself these three questions before you buy anything.
1. Do I need it? Will I use it this week? in six months?
2. Can I afford it? Is there a less expensive way to access it?
3. Do I need it now? If I don’t buy it today, will I find myself handicapped in any way?
If the answer is yes to all these questions, then you can proceed and buy it. Otherwise, give it some thought. If you can answer at least frankly ‘yes’ to at least 2 out of 3 questions, then buy it.
Explore all funding solutions
When we need something, we’re generally very quick to buy into the most expensive option. However, if we dig in the situation a little, there might be some less expensive solutions. It might be worth it to take the time to explore each option before making a definite choice.
For instance, college tuition is an expensive investment. However, there are various ways to fund it without getting into debt. Another example can be when buying a new phone. There are various options to access less expensive versions of a smartphone nowadays.
Another, less thought of, saving money is to increase your revenues. Indeed, these revenues must not be wasted as soon as earned. But, in most cases, if you keep the same living standards, and increase revenues, you should also increase your savings.
To earn more, you can take on a new job. You can also start an online venture. If you already have some money aside, you can also invest it in real estate, stock markets, or efficient savings plans, depending on your field of expertise. At Finnt, we offer durable savings plans you can check out.
Avoid getting into debt
The last way we’ll cover in this article is to avoid getting into debt. While debt can look like an easy solution to fund your expenses, it generally is a bad idea. The only way debt can be useful is when using it to invest in some activity that will bring you more money. In most cases, at least.
If you do have debt, we recommend you pay it off as soon as possible. Then start budgeting your personal finances to save money each month.
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