We know how saving money can be challenging, so we have listed 10 practical ways of saving so you can become a money savings expert in no time. Read on to find out more.
In this article:
- How to Save Money for a Savings Fund
- Money Saving Tips to Avoid Unnecessary Expenses
- Saving Money During Leisure Trips
Think Like a Money Savings Expert: 10 Ways to Be More Frugal
How to Save Money for a Savings Fund
Most people claim that emergency funds should contain at least 6 months’ worth of your salary. If you are planning to build one, or funds for other savings, below are some tricks you can do:
1. Allot for Savings Before Expenses
Before you list down your planned expenses for the month, plan your target savings first. Through this way, you can prioritize saving money and be able to stick to your monthly budget. For instance – let’s say you regularly receive $1000 every month and you want to save 20% of it. Automatically deduct $200 from your income and transfer it elsewhere (e.g. investment plan, savings account) before you start spending.
2. Open Another Savings Account
In relation to the first tip, you can open another savings account and subscribe to an automatic transfer facility every week or every month. You can also choose to make this account as a passbook savings account that requires you to make withdrawals in person at the branch. In this way, you can ensure you would have saved by the end of the month.
3. Reward Yourself When You Reach a Certain Amount
To make saving a little more exciting, you can reward yourself when you reach a specific amount. For example: if you intend to save $300 by the end of the month, let yourself splurge a bit by having lunch at your favorite restaurant if you reach your goal.
4. Get a Part-Time Job
A part-time job can help you earn a little more to cover different bills.
An example would be a consultancy job at the field your career is in. Your years of mastery on your career can earn you a consultant position at different companies.
Another one is opening up your own business for your hobbies. If you like gardening, you can start selling different herbs and flowers in small pots, for example.
If you are already retired but are still looking for ways to be productive, there are several different ways you can find side jobs.
Money Saving Tips to Avoid Unnecessary Expenses
When saving money, sometimes, the little things count more. Little expenses, when done every day, will add up and become even bigger than huge one-time purchases. Here are some ways you can let go of those small expenses:
5. Bring Packed Meals
When going to the office or meeting a couple of friends, you can opt to bring packed lunch and drinks. According to some reports, Americans may reach around $3,000 a year on lunch-ins and takeouts.
You get to save a lot more by preparing your own meals while also learning new recipes. It would also help to plan out your weekly packed meals at home so you can maximize similar ingredients.
It’s the same thing with coffee. By brewing at home and bringing your own tumbler, not only do you save, but you also get to learn about different coffee beans, too!
6. Get Rid of Some Membership Plans
Before subscribing or renewing your subscriptions, make sure you can maximize them as much as possible.
For example, the average gym membership costs around $50 a month. If you only go twice a month, then you are not utilizing your payment. A reassessment is in order.
There are other options at being healthy that can cost you less than what you are paying for without wasting a single dime.
7. Pay Bills via Automatic Payments
The most convenient way to pay bills is to have them automatically charged to your bank account. This way, you won’t ever forget to pay them.
Just a friendly reminder though: before you subscribe to automatic bill payments, you have to check its pros and cons. Some banks charge a few dollars for missed payments. You also have to check the other fees your bank may charge for their automatic payments feature, too.
Saving Money During Leisure Trips
There are different tricks to make the most out of your dollars when on trips.
8. Exchange Your Dollars Before Flying
Exchanging your dollars locally for foreign money can give you more purchasing power than doing so abroad. Make sure you monitor the exchange rates at home and abroad at least a few days before traveling.
You can exchange your money at your local bank or other money changing stores. Note, however, that some countries like the Bahamas, Barbados, and Belize also have their own money pegged at a fixed rate with the U.S. dollars.
This means you can opt to bring your USD in those countries and also pay in USD. Just be wary of additional charges they may give you for paying in USD. Be vigilant of the stores involved in black market foreign exchange, as well. These may offer better foreign exchange deals, but you might end up the victim of a scam.
9. Watch Out for Travel Deals
There are a lot of sites that offer good travel deals if you book in advance. Say you’re planning a trip next summer. There are websites that offer great money-saving deals as early as one year prior to the trip.
If you are also into last minute traveling, you can also find a lot of good deals online. There are also some tour packages you can book as close to two weeks before the trip.
Some sites also suggest and compile budget travel guides that you can follow, too. These can really help you save a lot of money since some guides offer a list of possible itineraries and even booking discounts.
10. Use Scanning Websites
Websites that scan the most money-saving deals are becoming more popular today. All you have to do is input your travel information (e.g. length of stay, destination city or country), and the sites will automatically search for the most affordable flights and even hotel accommodations. Some sites offer the option of booking flights or hotel reservations on their sites, as well. Some also offer features such as monthly updates on your flight search so you can be alerted of sales and deals.
These are just some ways on how to start saving money. There are different methods and alternatives on how you can boost your own savings. With the right amount of determination and patience, you can reach your target savings in no time.
Do you have other money-saving tips and tricks? Share them to the other readers in the comments section below!