A
penny saved is a penny earned - Benjamin Franklin
The
world is not what it used to be. These days we spend a lot more than we did in
the past few years. The economy is not helping matters as prices of things are
ever on the rise. While it is necessary to satisfy our needs and wants as
humans, there is also need to save for the rainy days- and they do come! There are
so many ways by which we can cut cost on our day to day lives and give more room
for saving. This post is focused on ways to save money so you can have
something to fall back on when the need arises.
- · Live within your means
This
is perhaps the most important thing to consider in finance management. Spend
less than you make. Then, put the difference into a saving account or other
safe investment. Don’t take that second mortgage when you cannot afford it. Your
family doesn’t need that holiday cabin that you only go to once in a year. Don’t
buy that third car only to keep it covered up. Don’t max out your credit card
when you know what is coming next month cannot cover the cost. It’s good to
want a good life for yourself and your family, but don’t break your back
literally to do so.
- · Save before you spend
This
is the best strategy for saving. If you spend your income first and then save
whatever is left, you will find out that you are not saving anything. The truth of the matter is that no matter how
much money you make, it’s never enough and you want more. The higher the
income, the more the things that you need to take care of. For this single
reason, ensure that you take your savings out of your income and then spend
whatever is left and not vice versa.
- · Make a budget
You
could never see me at a grocery store without a list of what I want to buy. This
is the same thing as managing your finances. Making a budget is like making a
list of what to buy. Stay within your budget and don’t buy things you don’t really
need. Learn to prioritise and figure out
the difference between what you want and what you need. Because sometimes you
buy things just because you want them not because you need them. For example,
buying my 10th wig is a want while buying foodstuff for the house is a need. I can
do without a 10th wig as I still have 9 that is functional. What I cannot do
without is food.
- · Eat out less
This
might look like its unimportant but eating out is actually one of the major things
we waste money on. Eating out less is one of the quickest ways to save money.
It will cost more money for a family of four to eat at a fast food
restaurant than a week's worth of lunch or at least two dinner meals. This doesn't mean you cannot eat out again, just reduce the frequency
at which you were going out before.
- · Buy in bulk
Most
people buy things only when they need it. Buying in bulk will save you money
than buying a single item. Buying in bulk is also a great way to survive
emergencies. However, only buy things that do not spoil easily in bulk else you’ll
end up wasting money.
There
are so many other ways to save money apart from those mentioned above. The most
important thing is to make a conscious decision to start saving and be disciplined
about it.
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