Savings are the difference between your income and expenditure. The basic way you can save more is to increase your earnings and reduce how much you spend.
Here are some tips for saving better:
More income, fewer expenses: Try and increase your monthly income. Explore different ways you can earn some surplus. This may mean taking up part-time jobs like teaching or exploring creative interest like writing or photography. While you’re at it, find ways to cut down your expenses. Make a list of your expenses and find out the ones which you can regulate. For example, if you are eating out twice a week, cut it down to one. Small steps can go a long way in improving your savings.
1. Cut out on unwanted splurging: Are you an impulsive shopper? Are you always buying things you do not need immediately? If the answer is ‘yes’, then you will need to put an end to filling your “stuff I loved but never use” cupboard. Remember, each time you cut down on an unnecessary purchase, you increase your financial corpus towards potential savings.
2. Start small: Don’t give yourself a big goal in a short time. Start small and build up your savings as you go. Don’t cut out all your expenses in one go. It doesn’t matter if you manage to save only a meager amount each month. Every saving, irrespective of the amount, is important.
3. Save for a purpose: It is always easier to save with a motive in mind. If you are saving to buy a car or a house, or are saving for your child’s future, remember the goal when you find yourself itching to spend money.
4. Start investing: Just saving money is not enough as rising inflation may mean that you eventually lose money in the long run. Explore ways to invest your savings as per the risk you are willing to take. You can explore debt funds or bank fixed deposits if you’re looking for safer investments. On the other hand, if you are willing to take the risk, you can try equity investments through stocks. A Mutual Fund SIP is a mid-way route offering higher rewards at moderate risk.
5. Always learn to be contented: Just merely taking time to listen and look at the things you are already blessed with it is still crucial to be mindful about the things that you already have. Learn to appreciate life more and live more simply.
These are really helpful tips, Mommy Ina! I’m still having a bit of trouble with #2, though. Most of the time, I cut down all my expenses, and then I’m left with insanely unrealistic budget expenses. Still trying to get my hands on a nice investment vehicle to store my hard-earned earnings from freelancing as well. 🙂
I am a thrifty person but sadly, there are times when I do splurge. Once in a while I buy something really expensive for myself as a “reward” then feel guilty afterwards! Hahaha Great tips, Ina!
Some more tips;
1. Switch off lights when not necessary
2. Buy energy efficient appliances
3. Bargain, bargain, and bargain
4. Pay bills on time
5. Keep an eye on discounts and incentives
I think that one of the biggest struggles people have is being content with what they have.
It’s okay to splurge once in a while so we get to enjoy the fruits of our labor. But if it becomes a habit, that is dangerous. One can end up in serious debt. That would be very stressful. I’m glad I learned how to invest in the stock market and mutual funds.
i do agree that investment is actually very important if we want to have a substantial amount of savings (especially during our old age). but it’s also the trickiest, isn’t it? still trying to learn the ropes and make sure that investment doesn’t do more harm than good for me.
Of all, I like the last one. Be contented. I find it as the secret to s happier life as well. We living within our means and accepting there are things we can and can’t have.
Another way is to control expenses like choosing not to get a credit card. Unless I can pay with cash I won’t purchase and it’s actually made it easier for me to make sure I don’t have more debt. Investing in appliances that save on energy and electricity is another. Turning off lights, unplugging appliances, etc are more ways to save money.
These are great tips! Though I would have to admit that number 1 is a bit challenging due to the sale events happening these past few weeks. I still have a hard time saying no when I see 50-70% off signs. Haha! I am looking forward to controlling my spending moving forward especially when I receive the Christmas bonuses.
These are great tips! I have been struggling to save for a long time and maintaining a certain lifestyle is really hard. Maybe in the future when all the things that I’m used to no longer interests me, makes it possible. Adulting is really hard.
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I am badly guilty of the reason of not saving up. Maybe because I am putting the blame on my husband who really doesn’t save at all. So to cover all of that, my goal this year is to open a savings account for my baby and also apply on insurances for the family. I hope by that way, we can help save for our future finances.