One of the things which is easy to talk about but very difficult to implement is to start saving money. Everyone has an opinion about saving money, but the number of people with savings is not proportional. In one way or another, everyone works to feed themselves and pay their bills. People who can adjust their income and expense balance well and those who constantly monitor their expenses know how to save money. Sometimes we may have unplanned expenses, but apart from such cases, wasting the money we have left after paying our expenses would not be the right choice for our future. Let’s look at some money-saving tips together and see how we should proceed.
The most important thing to do to save money is to have a clear picture of your budget. If you keep a written record of how much income you have and what your expenses consist of, you will both have the chance to reduce your expenses and take the first step towards saving. Moreover, whenever you want, you can read the text you have stored and avoid expenses that are no longer necessary for you. Slowly you can get rid of all unnecessary expenses. One of the common mistakes salaried people make is that when they have extra income, they spend it without thinking too much. However, by opening a savings account, they can both have the chance to keep their money safe and increase the value of the money in their savings account at the same time. After checking all previous spendings, when non-essential expenses are reduced, the money that can be added to this savings account will also increase, the money saved can reach a level that is hard to believe.
Adapting good spending habits is as important as having saving habits. Today, there are many factors that make it easier to spend money with technology. For example, factors such as credit cards and online shopping, rapid changes in fashion, and ever-evolving new versions and models of products constantly make us spend more money. When we keep up with the order, we only consume and forget to save money. However, if we don’t spend money on anything other than what we really need, we may have a chance to save what we have left. Our habits and daily routine are also important for this. People who wander around online shopping sites during their spare time definitely want to buy a product, but people who read books or deal with something else not only save money but also save time. Time passes faster than before because almost every hour of the day, we are either at work, on the roads or for a different purpose. At this point, the spending on food constitutes a large portion of the budget for most of us. People who spend time outside constantly increase their spending when they eat at restaurants instead of their own homes.
How to start saving money?
You know the old saying “out of sight, out of mind”. Start with opening a savings account. This account should be different from your current account that is used for your general expenses. Many financial institutions offer this option or high-yield savings account options where you get paid interest daily, monthly or annually.
Once you open your new savings account, then you can start saving. If your budget allows, make a habit of saving first a certain amount every time you get paid before you start spending. In order to decide how much your budget allows you to save, it is a good idea to make a clear picture of your basic expenses. As we have mentioned before, write down all the basic expenses such as housing, car payments, utility bills and groceries. From there you can decide how much you can put into your savings account before you start paying your liabilities. At first maybe you might not be able to save a huge amount of money, however be patient even if it is a small amount you will see growth in the long term.
For your groceries and other personal needs, you can try cash and carry market options where you can buy the same products for cheaper prices. Don’t forget that when you pay a higher price you don’t always get high quality. You can read online about alternative supermarket options and discuss it with other people on forums. Or if you have family or friends that are saving, you can ask them about what alternative options are available around your area. Once you optimize your budget you can put that difference into your savings account.
If you think you are overspending on certain things such as monthly subscriptions, you can try to optimize those expenses. If you are interested in TV shows, music or video games and are subscribed to multiple entertainment platforms you can choose to stay only with your favourite one or go for a platform that provides multiple services then cancel other subscriptions and put that money in your savings accounts.
Several online banks or payment providers offer cashbacks, discounts or points on certain purchases. You can literally get the same service or product for a better price. You might not be able to make huge money on these discounts however it still matters for the long term.
We know not everybody has a living plan and some people want to enjoy life fully without a plan. However when you have a backup plan to enjoy your life more in the long run, you will feel less stressed and more financially stable which will bring joy in your life. Living on a plan, making regular calculations, and controlling the budget will make it easier to save money. Please also keep in mind: one step at a time. It is not easy to change spending behaviors instantly and it will not be realistic to expect an overnight shift in your lifestyle or spending habits. Take baby steps and read books or blogs about saving and investing. You can always visit Jeton’s blog for more interesting topics about saving and investing your money successfully.
