Everybody strives relentlessly trying to increase their income. Nonetheless, one can lead a better life with the same salary they earn without asking for a raise. If sometimes you struggle to make ends meet and have a rough patch between paychecks, it is the time you should learn the basic skills of saving money. Saving your loose change is an ideal spot to start. Research has proven that over the course of your financial year, you can raise up to $500 that you can keep in your emergency fund account just from saving the loose change.
You should also keep track of your spending to make sure that you spend your money on necessary items and services only. If you come across something that you can do away with, cut it off and keep the arising balance in your emergency savings account. Always avoid impulse buying and whenever you want to purchase an expensive item contemplate on it for at least a day. As you make your purchases, make sure that you have considered all factors to avoid losing money by buying expensive items that you will later discard.
Credit and debit cards should also be used prudently to avoid cases of high-interest rates. Interest rates can eat into your income significantly. Thus, avoiding these high rates will leave you with more money at hand. Always live within your means to avoid spending overdrafts on your credit and debit cards. Saving money requires discipline and commitment. Therefore, try to get receipts for everything you purchase for recording purposes. At the end of each month, go through your stack of receipts to establish your spending habits and, in turn, try to eliminate the unnecessary spending.
Take advantage of the discounts and promotions from the retail stores. These promotions enable you to purchase all you require at a lower price. The balance that remains that you would have otherwise spent put it in the emergency savings account. Whenever you spend your money on excessive indulgences like beer and designer coffee, ‘save’ an amount equal to the price of these unnecessary items. If you cannot afford to save a matching amount to these prices, then you cannot afford these nonessential items.
Buying items in bulk will save you money since the wholesale price is lower than retailing prices. Making a habit of bulk buying is guaranteed to save you a significant amount of money. If these methods seem a little difficult to adapt, put things into perspective. Before buying anything divide its price with your hourly pay. For instance, if you earn $12 per hour, you will need to work for five lengthy hours to afford a $60 pair of shoes. This comparison will enable you to buy things that you can easily afford.
Saving money should be done using short-term goals as opposed to long term goals. Long term goals tend to make people reluctant since they believe ‘there is still time’. On the other hand, smaller short term goals will keep you on your toes and in the long run, you will realize that you save more with smaller short term goals.