Money speaks one language, ‘save me today, and I will save you tomorrow.’ Many people around the world don’t know how to save, do not save, or they have nothing to save at all. Spending money is more exciting. However, saving money should be a priority.
Therefore, which are these spending financial habits that you need to cut or apply.
Let read through!
1.Create a budget.
The best start is to know how much money you have and where it all going. Therefore, creating a budget is essential. So, use this famous 50/20/30 rule, which states that 50 percent of your income should cater to essential services like water, food, rent, and others. 20 percent should go to savings, and the remaining 30 percent should serve your personal expenses like entertainment, and others.
By doing this, cash wastage on non-important things will be minimal or zero, and 20 percent saved. See.
2.Cut debts and set goals.
The biggest mistake is to let your budget pile up or, going into unnecessary debts. On the other hand, lack of goals is a plus to money wastage.
So, how do you get rid of your debt?
First, start by paying from the smallest to the largest debts you owe your lender(s). This will reduce debts accumulation or reduce it.
Second, spend within your limit to avoid unnecessary debt. Accrue a debt that caters for your primary essentials like food.
Still not convinced? add up all the money you have used to service all your debt plus the interest accrued in each month.
There it is!
That money can be saved or invested. So, spend within your limit and the remaining to fulfill your goals
3.Go for discounted goods or Products
They say “you never know until you ask”, therefore, always ask for a discount when doing shopping.
Discounted good or services saves money.
Let say, a certain store, one trouser has a buying price of 50 dollars and another store on the other side of the road, offers the same type of trouser to its customers like senior military personnel, doctors, teachers at 5 percent discount. If you buy a discounted pair of trousers, you will have a chance.
You see! money saved.
Another way, how about negotiating? again, not all store gives bargaining advantage on their products. To save, check yourself on those stores you can bargain or at least have a discount from the original price.
Always evaluate how conservative you are with your utilities. This will cut unnecessary money spending. Take this, what about replacing electricity-powered machines with a solar-powered machine to save the power bills.
Again, utilizing (if available or close to) the library instead of buying books. You can get the same book in the library for free. Read it, and return.
Therefore, always strive to save to honor your budget. Go for free services and products. Try to pinch pennies as much as possible.
Go for quality
When buying products or goods, go for those goods that can last longer. This will give you a cash spending holiday.
Example 1, when buying clothes, assuming you do not have growing children, always buy a good quality that will give you a four- or three-year service. You won’t have to buy new clothes since you have them.
Quality will enable you to save as much as you can for a period of two or one years.
Again, money saved.
Cut all non-important monthly or annual subscription.