Saving Money in More Simpler Ways

Do you ever thought of the time when you do not have to think about any payment issues before buying anything big because you have a lot of money in your savings account? If you want to achieve that level then you have to save money and more money. The best step to save more is to spend less as you will not buying any extra and useless item you will be saving the amount. Today in this article I have come up with some simpler ideas for you that will help you to spend less and save more money so that you can fulfill your dream of financially stability and could spend without any payment issues. The road toward financially stability is not as steep as you think but it need some strong determination and a bit of smart approach towards your spending.

Ending your month with debt completely destroys your savings habits but this happens because of a lot of extra and un necessary spending you do in your month and you are not making an amount that is required to fulfil your expenses so first you need to focus on spending less. Starting from the 1st tip,

1-Track your Spending

To save money tracking your spending is a very important task. It is difficult to memorize everything you buy daily so it would be a better idea if you write it down. In the first step I am not asking you to change the way you spent but just write it down. You can simply do it in an Excel sheet or you can take help from an online tool like Betterment as it will help you to calculate your net worth and will automate your tracking process. As after a month you will be able to see that what amount you have spent in this whole month on which category and you will be able to realize that where you were buying extra and useless items from your budget and these amount build up to become a big amount after a time that you are throwing away. So by avoiding these extra expense you can save a big amount for you that can be put up in the savings account. Tracking your spending will always be an alarm for you as it will help you not to buy useless items and will save you from any extra temptations.

2- Only Buy what you want

After tracking your spending the thing you now have to do is to make a check at what you were buying extra in the list and skip that expense. You should change your perspective of shopping in to value based shopping. Value based shopping means you should make an estimate of how much you earn by an hour and whenever you are tempted to buy an extra item you should think that if you worth it not that means you should ask yourself a question that buying this item is necessary to you or not? By asking this question you will be to realize and estimate the value of the item you were going to buy and you will be able to know how much extra hours you would have to work if you need to buy that.

3- Set your Goals

You cannot get to a destination without a road map so to save money you need to set your financial goals. As you should know how much you want to save and for what you are saving as these two questions will help you to make a clear road map for saving money and you will be able to save money with a vision and road map. You can divide your financial goals in to three categories, the first should be the short term in which you can challenge yourself to save an amount in 2 to 3 months and to save for a vacation or something like that, the second one is the medium term goal where you can take time for an year up to 5 years and ask yourself to pay off your debt completely and Buy a car or something like that, then the last is the long term financial goal in which you can challenge yourself to pay off your mortgage completely and to save a big amount for your retirement that can take more than 5 years to 10 years. These Financial plans will help you carve a way and it will be a motivation for you to stick to the money saving track.

4- Budgeting

Creating a budget that fulfill your goals and need is a vital step towards money saving. Many of the people like me thinks that the budget will restrict you to buy things and you will not be able to buy according to your needs that is completely an opposite thinking of what budget means budget gives you freedom and comfort for saving money and you can buy according to your needs every time. Making a budget carves you a road map for the upcoming month and by this you are able to save according to your goals and plans. So before starting your new month you should make a proper budget and if you have no idea how to start with your budget you can use the online tools to make a budget according to your needs.

5- Be ready for big expenses

One thing that can get you in debt is that sometimes you have to face big expense for repairing your house and maintenance. This is the time when most of the people go for debt payment. You can save yourself from debt by following a proper plan. Every month when you are making a budget you should put an amount for your home repairs and put that amount in to the saving account by this you will be saving an amount for the expense you will have to face after some months. After some months when the expense arrives you will not have to go for debt as you will have that amount in your saving account for that expenditure.

6- Save on Your Energy Costs

Some little perks in your daily life can help you save a very big amount for the month. Energy costs takes a big portion of your budget as you have to pay the utility bills and other expenses if you are a home owner. So to save on these energy costs you should make a little perks in your daily routine. You should turn off any extra light or fan in the home when you need it. You should replace your old bulbs with the new LEDs and with the all appliances you should replace them with less energy consuming appliances. You should turn off the heat in the day when its winters and a sunny day and keep your windows open so that Sunlight can warm your house and for the summers you should keep your window closed so that any of the heat cannot come inside your house and in the night and keep the AC on high temperature in the night as it is less hot than the day. Another thing you must do is to replace your old thermostat with the new programmable thermostat so that it could program itself to save you energy. By doing these little alterations you can save a very handsome amount for the month and reduce your energy costs effectively.

7- Rent your Rooms

Another effective way to save from your house is to rent your house, rooms and beds to people who are staying in your area for a shorter time. Tourist around the world look for cheap places to live. AirBnb is an app that help people find a place for cheaper prices. You can register your home on AirBnb and get paid guests that can help you to save a good amount for a month. You can charge according to the rates of your area and the facilities you provide.

  8- Look for a cheaper Apartment

If you do not have a big family and you are living in a big house then there is no need to spend extra money on the rent you should try to move to an apartment according to your need and that is cheaper than the one now. This will help you save a good amount every month from your budget. Another thing you should do is that you should live in a walkable community where everything is in the walkable distance from you like the doctor and the grocery store etc. and another thing is that you should look for a place that is near your workplace. By these two trick you would be able to save a good amount on your transportation expenses every month.

9- Grocery Shopping

This is that part of the budget that is very important. To save on grocery shopping you should act smart. Every time you are out for shopping always look for the local food instead of the branded one because the local food is far much cheaper than the branded one and is healthier too. Another trick is that whenever you see that an item is on sale and the item could be preserved for a long time then you should buy that item in bulk. This will help you to buy items on a very cheaper price for a long time. An extra tip for you if you have a garden in your house then you should try to grow your own food. By this you would be able to eat healthy and cheaper.

So these were the some methods and tricks from which you can save money effectively and easily. Always remember that money saving needs a strong determination so you should always be positive towards your this approach. Drop a comment in the comment section below and also share your experience of saving money and building up a big saving account through these methods.

Have a good Day!

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