24 Effective Ways to Save Money

24 Effective Ways to Save Money

FINANCE

Here are 24 Effective ways to save money:

 

1. Stop small purchases

Shop everything in big packages (bulk) and shop less frequently. This applies to everything from food to household items. It is better to open your wallet rarely and make it thoughtful than to constantly run in and out of stores. This also reduces the risk of impulse purchases.

Buying food in bulk, in particular, is not only is it cheaper, but it also forces you to plan your food week in the future. Then you will not have to open your wallet more often as we wrote above, which reduces the risk that you will put that extra candy bag at the checkout. 

 

2. Do not buy on credit and buy only with money that you have

One tip is to call your bank and cancel the credit (if you have one). Obviously, you still have your credit card, but you can only trade the money that you have on your account so your balance will not be negative. This makes it easier to discipline yourself. If you still want a credit, remember to use it carefully and always pay it back on time to avoid fees.

 

3. Create a budget

Feel free to start the first day of the month and discipline yourself. An easy way is to download an appropriate app and start recording/taking pictures on all receipts. Hold yourself accountable to follow the budget, take one week at a time. Many people do not think about how much they spend on small expenses.

Keep track of it all and you will be shocked by the amounts of money you spend. Make the habit of always making a budget. Write down the income and expenses you have for the coming month, making it much easier to keep track of where your money goes.

 

4. Go to cheaper stores

Go to cheaper stores first and look there, especially when it comes to clothes.

If you do not find what you want there, you can slowly go to more expensive stores, but you should not assume that more expensive is better.

 

5. Use discount vouchers and look for great deals

If you really want something, whether it’s food or clothes, write it up and wait for the next offer. It is worth the wait and will save you a lot of money.

 

6. Abolish unnecessary expenses

An example of that is smoking. It’s both expensive and harmful. If you can not quit, do the following: Put the same amount of money that you spend on unnecessary things on the side and start building up a real savings account. This will also bring you insight into how much you spend on unnecessary expenses.

 

7. Relate the price of a product with how much you have to work to make that much

For example, if you are buying a pair of new shoes or a new watch costing $200 and you earn $100 an hour after tax, do you know that it really earns 20 hours of your working time?

 

8. Divide your salary into two parts

Your employer can surely help you with this. One to one savings account and one to one spender account. Or you can set this up automatically by the day you receive a payment. It makes it easier to discipline yourself and force yourself to save.

 

9. Break down goals and set short-term financial goals to discipline yourself

It’s easier to budget per week instead of per month and it will also be easier to reach your goal. So figure out how much you will spend this week and how much you intend to save. It will be easier than having a monthly plan.

 

10. Determine a date to start saving and living more economically

As we wrote above, take a week at a time and see how it feels. See as a social experiment on yourself to get started.

 

11. Keep track of your food purchases

Food is a big expense for many households, especially for families with children, so these expenses need to be carefully reviewed to save money.

 

12. Make a shopping list at home that you bring to the store

Having one reduces the risk of impulse purchases. Additionally, make sure you do not go shopping on an empty stomach. This increases the risk of impulse purchases.

Try low-priced products instead of the expensive brands you usually buy. If you do not like them, go back to your old habits, but it’s worth a try.

 

13. Bring a lunch box

Some don’t like this idea at all, but if you skip lunch in town you can save $100- $200 a month. Make that a year. It adds up.

 

14. Reduce your costs for coffee

Coffee in town every day will be a lot of money in the long run. Try replacing it for cheaper coffee or drinking coffee at work and meeting your friends for a walk instead.

Plan your restaurant visits and try to avoid eating at a restaurant at all costs. If you eat outside, it should be because you have planned it. Make it a habit of just eating out on special occasions.

 

15. Look over your bank fees

Banks apply many hidden fees, but with a little knowledge, you can save money on many unnecessary expenses.

Think about changing your bank. Most people are loyal to their bank, but there is no reason for it. Next time you have a free day, sit down and watch your bank cases and how much you pay today. It may take a couple of hours, but it’s definitely worth it and you can save a lot of money.

Additionally, avoid hidden fees such as overdraft fees, foreign exchange swaps or make sure you have saved on an account that pays interest.

 

16. Do not take SMS loans and other short loans

This is absolutely nothing to recommend.

If you have such loans then increase the mortgage on your house or car to solve these and never take them again.

 

17. Pay the bills on time

It’s easy.

 

18. Pay by card when you are abroad

It may be cheaper than taking out cash from an ATM machine. Also, choose a bank card that has low or no currency exchange rates or fees (a 1.5% fee usually). In addition, an advantage is that you can get an overview of how much you spend.

 

19. Reduce fuel costs

Are you driving often? Try to drive environmentally friendly and stick to the speed limit. The car will use less fuel, and you’ll also avoid risking unnecessary expenses on speeding fines.

 

20. Grow your own herbs and spices

Who does not love fresh herbs, but they are actually quite expensive … Grow your own home in the kitchen. It’s nicer AND cheaper.

 

 21. Turn off the water when brushing your teeth

Do not allow expensive water to drain into the sink without getting used. Turn off the faucet when brushing your teeth.

 

22. Review your insurance policies

Perhaps you pay too much in insurance premiums for the house, the car or the dog? Call a few different insurance companies and double-check if you have the best solution!

 

23. Invite your friends

Do you and your friends eat outside? Then you know that restaurant visits tend to be very expensive. Invite your friends to dinner instead.

 

 24. Remember that interest rates are not set in stone

Contact your bank and find out how much you pay in interest and bank charges, actually. Remember, it is in the bank’s interest to keep you as a customer, so even if you have home loans and something else with them, you have a good negotiating position.