Does it ever feel like no matter how hard you try to save money, it’s almost impossible to save enough to meet your financial goals? Something always seems to come up. Your car suddenly needs repairing, maybe your washing machine starts acting up, or sometimes, you just spend on something you never really needed.
However, there is still good news for you. There are hundreds of simple ways of saving money to get you closer to your financial goals. Let’s talk about a few of them!
1. Set Savings Goals
The best way to save money is by visualizing and knowing what you are saving for. Are you saving for a house? A car? Or maybe you have a few short-term savings goals. When you have a target for what you’re saving for, you will know how much you need to save, and you will be much more motivated to do so too.
2. Know Where You Are Spending
Before improving your savings, you first need to know and understand where you spend your money. Having an idea of your regular and essential expenses will allow you to know where and how you can save and spend less.
3. Start a Budget
Knowing where you spend will allow you to set a realistic budget for yourself. A well-planned budget allows you to stay on track of your savings and lets you track your progress. You can always change and plan your budget again as your financial situation changes.
4. Automate Your Savings
If you can automate your savings, you will be saving without even thinking about it. Ask your employer or set up your own direct debit to save money without having to do anything.
5. Take Advantage of Retirement Plans
You should take advantage of the incentives offered by your employer. Retirement plans where your employer matches any contributions and a 401(k) should all be used to increase your savings as much as possible.
6. Avoid Name Brands
Opting for generic items at the store instead of going for the name brand is one of the simplest of ways to save money. Generic brands of products are usually just as good as name brands, with the only difference being how well marketed they are.
7. Think of Costs as Hours Worked Instead of Monetary Value
This psychological tip can help. Before purchasing an item, think of how many hours you worked to earn that much cash instead of just thinking about the money. For example, before purchasing those $70 sneakers, equate those 70 dollars to how many hours it would take you to earn that amount of money. Knowing how much time it took to earn those $70, you will know if those sneakers are worth it or not.
8. Drink Your Coffee at Home
Buying a $4-$5 coffee every day while you go to your workplace might not seem like much, but it all adds up to a lot! This does not mean you have to drink some cheap instant coffee every morning, but buying some good quality coffee beans and brewing it yourself at home will save you a whole lot of money in the long run.