Expert tips: How to save rationally
Saving is the foundation of wealth. Everyone knows about it, and there are thousands of successful people who don’t waste money.
But in practice, few successful people tend to share their capital accumulation strategies. No wonder they say: not the one who is rich who has a lot of money, but the one who has enough income.
And on average, people with an income of average and below-average are simply not familiar with saving strategies that will significantly reduce costs and save enough money to realize their dreams, whether it is a vacation in an exotic country, a prestigious education, a luxurious mansion or opening your own business.
Let’s see what expert advice on saving can and should be taken as the basis of your life.
And to make it easier to learn how to save money, introduce it into daily life according to one recommendation, gradually. You see, in six months you will turn from a spender into an economical and reasonable consumer.
Don’t Make Impulsive Purchases
Carefully plan your shopping list, even if it comes to a situation where you looked into a nearby store for a pack of milk: compulsive purchases can empty your wallet by a very tangible amount, and you don’t need to buy things at all. Therefore – a clear list and nothing but a list. The same goes for spending on online shopping or planning large purchases.
And, by the way, forget about the excitement of “Black Friday” and other sales: most often goods with minimal discounts or with a previously wound price are put up for such mega-deals. So, it is better to set aside a little more money and buy the really necessary thing that you liked, not at the time of sales.
Another practical advice for those who often leave large amounts of money in stores. Make it a rule to go shopping with cash. To get and give paper currency out of the wallet is a more tangible sense of “farewell” than if you pay for a purchase with a plastic card, so to speak with “virtual” money that you do not feel. Despite the convenience of plastic cards and contactless payments, you cannot always control your ambitions, which means that the risk of spending a large amount increases.
By the way, if you think that the first advice is applicable only in everyday life, we will disappoint you: take the basic principles and adapt to your business. Happened? And now calculate the savings even if you didn’t buy stationery for the office situationally, according to your mood, but ordered it planned and with a margin.
Put Aside a Little
Many people live exactly the amount that their salary or income is. Needless to say: in case of unforeseen situations or just when they need to relax they will not have the resource to solve these problems. So, they will have to take a loan or borrow money.
Instead, make yourself a rule – to put off, at least a little. To do this, the money received must be distributed according to cost items: for utility bills, for training, for repayment of loans, for planned purchases (see method 1), for everyday expenses – you can determine the number of these articles yourself based on your lifestyle and needs. But the main thing is: if after distributing the cost items you still have money, do not spend it – postpone it. Let it be £10 or £500,000 – it doesn’t matter, but they must be inviolable.
Afraid to spend money deferred in this way? Open a deposit account with a bank with the possibility of replenishment, but without the possibility of early repayment. Set a deadline, for example, before the start of your vacation – and now, by the time of rest, you will have already accumulated an amount that you can spend for your pleasure. Or continue to accumulate – here it is, as you wish. By the way, this approach will also allow you to get a small profit in the form of interest on the deposit.
Lower Your Credit Burden
Credits suck money out of you drop by drop but squeeze it dry. This is true: no bank is profitable to issue money without returning it with profit. Therefore, if you want to save money, reduce the number of loans to a minimum. Of course, mortgage lending or buying the necessary car in this case will not be included. But the decision to buy a new gadget for money from a credit card or expensive jewelry as a gift to a loved one is quite. Even the smallest loan leads to costs – commissions, interest, seem unobvious, but they gobble up your budget. Can’t buy your favorite item from your paycheck? See method 2. Or just think about whether you need it right now.
Don’t Indulge in Entertainment
If you think that saving is buying the cheapest food and giving up entertainment, you are mistaken. Saving consumption is based on completely different things.
- Plan your diet and try to buy quality foods, not fast food. Surprise, but food in the KFC will be more expensive for you than buying fresh meat and cooking a steak at home. Just give up laziness and buy good quality products. And by the way, it’s better to eat right, because treatment due to poor nutrition will cost you a pretty penny.
- Entertainment is great, but you should not spend all the money on them. If you like cinema, an alternative to a weekly visit to the cinema (where you are guaranteed to buy 3D glasses and popcorn besides tickets) is an online movie subscription service. And for the money saved, you can completely afford a high-quality home theater. Do you like to spend the night playing casino games? Sites with free slots no deposit required win real money will help not only to feel the excitement but also sometimes to earn extra money.
- Spend money on amusement parks or museums? Subscribe to sites with event posters in your city: they often publish offers with free admission to the most interesting locations of the city. And look at sites with coupons and promotional codes – this is a great saving option.
- Plan your vacation in advance. If you want to relax abroad, it is better to book plane tickets at least six months before departure. At the same time, there will be time to study hotel reservation services – and find a profitable accommodation option. Similarly, with the purchase of things on vacation: buying a swimsuit and surfing suit in winter can be much cheaper than in the summer season. Remember this – and you can save money directly at the time of rest.
Cost optimisation is not easy. And our advice is only a small part in a large sea of ??ways to save money. But with them, you can save money and increase your well-being.