Living life without saved money is like operating a business without business insurance. You would never know when an emergency comes, and once it comes, you would find yourself in a really difficult situation if you have no rainy day fund. Here are some tips that can help you save some money-
- Debt Cannot Be A Part Of Your Life Anymore
Try to pay off your debts as soon as you can, and refrain from making new ones. As you keep on making the repayment, your money bleeds out, and you barely have anything left for you. As you make newer debts, you get stuck in this vicious cycle of loan repayment. So, avoid making loans altogether.
- Create An Emergency Fund
As we said in the very first lines of this article, you need to have contingency plans for emergencies. Without money, you can’t expect to tackle any unforeseen scenarios. Convince yourself that you would need to have at least three to six months’ worth of your income tucked away as an emergency fund.
- Trim Your Groceries
Once you start reviewing your monthly grocery expenditure, you would find that there were many unnecessary purchases that you could have done without. Was that extra case of Gatorade really necessary? Or, that extra packets of Oreos? If you cut down on these expenditures, you can save a handsome amount of money.
- Organize Your Budget
Review your previous monthly expenditures and sort out a well-thought budget for the upcoming months. Categorize your expenditure into multiple sectors, such as food, transportation, cable bill, etc. Organizing your expenditure habits could prove instrumental in stepping up your saving game.
- Cancel Auto Renewing Subscriptions And Memberships
Do you really need to have subscriptions to multiple streaming platforms? Do you remember when the last time you logged on to the Athletic? Cancel subscriptions that you have been using rarely lately. Also, opt out of the auto-renewal feature when you subscribe to a new subscription.
- Set Away A Certain Amount Of Money Each Month
Take away a certain portion of your monthly income from the expenditure pool, and keep it in your savings account. Make yourself convinced that the remaining amount of money is the only money you have this month to spend. Forget about the money that you had set away unless there is an unavoidable crisis.
- Stop Being Brand Savvy
Many of us have an affinity for brands. But, there are many generic alternatives available that offer almost as much utility in almost half the price. Yes, there wouldn’t be the feel-good factor, like you would get from wearing a pair of Air Jordans. But, that’s a sacrifice you can teach yourself to live with.
- Restructure Your Mortgage
Is your mortgage rate charging you extra money? Is there a possibility that refinancing it would help you save more? Consult a financial advisor to see if you can save up some money by changing your mortgage rates. If that’s the case, make the switch and enjoy a surplus stock of cash.
- Be Wise With Unexpected Income
We have this urge to go out and celebrate every time we get our hands on some unexpected money. It could be a performance bonus, inheritance from a distant family member, or a tax refund. Resist the urge to spend the money on something fancy, and use it to pay off debts, or expand your emergency fund.
- Timely Maintenance Would Save You Big
Ironically, many people ignore home and car maintenance issues as an act of parsimony. But, the reality is, delaying to act on these matters only worsen the problem and would cost you much higher repair fees in the future. So, address these problems before they become more aggravated and costlier.
- Buy Durable Products
This might seem a bit contrasting to what we had said earlier, but investing in a good quality product is better than investing in multiple cheaper, but less durable items. Paying more money is worth it if it remains serviceable to you for a long period. Things that don’t last long would cost you more as those would need to be replaced frequently.
- Minimize Energy Costs
You can shrink your energy bill considerably by just making a few simple adjustments around your house. You can spend a bit less time in the shower, install LED bulbs in your apartment, instead of more energy-consuming ones. If you can afford them, then go for energy-efficient home appliances.
- Select A Reasonable Cell Phone Plan
With public wi-fi hotspots popping up in more and more places, the need for purchasing dedicated mobile data on your phone is gradually decreasing. Check whether you are buying more internet data than you require. Also, check for bundle offers saving on talk time as well.
*GasanMamo Insurance Limited is authorised under the Insurance Business Act and regulated by the MFSA