10 Best Ways to Save Money

Saving is everyone’s desire, but a skill for few. You are telling yourself you will start saving next month, next year, the year after, and your first born son starts attending college without nothing to show. The only way to save money is to do it when there is still time to do so – NOW. However, you may need to start developing befitting money habits and stop spending on unnecessary items. Some of us cannot meet our future goals because we are distracted by a few needless purchases. We say to ourselves, let me buy this TV today, I will start saving with next month’s salary. Then next month a child falls ill, and we postpone our saving yet again. For others, the goals they set is too unambitious to encourage saving behaviors. Thus, developing the right attitude is the starting point of a successful saving strategy.

You can learn to save and achieve your financial goals using these simple money saving tips.

1) Do these three-pointers – No debt, no overdraft, no advance

One of the things that prevent people from saving is debt. If you borrow today, you will use next month’s salary to pay the debt. In this regard, you will have barely enough money to meet your daily needs, leave alone saving. Towards the end of that month, you are broke and you say to yourself, let me take a little advance to take me through the remaining days of the month. That is how you find yourself in a cycle of debts, and the saving month will never come. So, restrain yourself from unnecessary debts. When things get tough, be tougher. Do odd jobs on the sides rather than borrowing. Cut your budgets if you can, go hungry if you may, but always keep your appetites for debts at the bare minimum.

2) Food is where the money goes, reduce your trips down to the grocery store

Majority of the money that we earn often goes to food, household goods, entertainment, and educational supplies. Most of these are conveniently displayed in convenience stores across the street. You go in, planning to buy a packet of wheat flour, but you are attracted to a sweet-smelling burger on the sides. It is healthy and satisfying to treat yourself once in a while, but you shouldn’t overindulge by impulse. While you add up one or two unnecessary stuff into your shopping bag, you blot your budget and end up saving nothing. Thus, you ought to minimize on what you shop at the supermarket in order to save money. But how do you do so?

  • First, make a shopping list before going to purchase things.
  • Secondly, do not make unplanned trips to the groceries
  • Do not use saved money to do shopping
  • Check your appetites while shopping
  • Learn to stick to your shopping list and budget

3) Practice the three types sustainable buying: Generic, Organic and Bulk

To benefit from discounts and save your money, buy goods on large scale. You can also save money by removing the idea of brands in your head. It is not always the branded items that come with good quality; but all branded goods come with a higher price. By buying generic goods, especially electronics, you save money. For food, most organic and fresh food from the farm are healthy and cheap. You can buy them in large quantities and make your own food from home rather than buying packaged foods from the store. Therefore, buying generic items and organic food in bulk is a sure way of saving money.

4) Check your subscriptions

These days money disappear through many holes – holes in the pocket, holes in the wallet, and holes in digital devices. Most consumers subscribe for TV programs, mobile data services, online shopping stores, gym membership, Netflix, and other service platforms. You may not necessarily need to unsubscribe from these services to save money, but you can cut on subscription fees by sharing with colleagues, friends and relatives.

5) Win discounts by bargaining

You may save money by improving your negotiation and bargaining power. Some items cannot be bargained, like in the supermarket. However, saving money through bargain is possible for some commodities. Bargain where you can, buy in bulk to increase your bargain, and do a lot of research. By getting sufficient information about alternatives in the market, you will know the real prices of products. Thus, no one will lure you to buy expensive products when there are cheaper alternatives of similar qualities if not better.

6) Save deliberately

If you do not have a savings account, you may reconsider your attitude towards saving money. You can save lots of money by creating a bank account where you channel a small amount of your salary every month. The best way to save is to open a lock savings account that does not allow you to withdraw before a certain time elapses. For instance, if you are saving towards buying a car in two years, you can open a lock saving account that prevents you from withdrawing until the end of two years. There are several saving alternatives, including banks, microfinance institutions, mobile platforms, etc.

7) Earn interest on saving

Another way to save money is to deposit in a bank account that earns interest on savings. This approach allows you to deposit a large amount of money in a financial institution for a given period of time, mostly annually and semiannually. The money you save through discounts and reduced grocery trips can be accumulated and saved in interest-earning accounts. This approach kills two birds in one stone – you save money and make profits at the same time. Thus, bank deposit can be an investment that motivates you to keep saving money.

8) Cut down on bills

Many people incur significant costs on bills such as electricity, water, rent, and gas. You may want to live in a good house, but to save money you may need to consider also the price of the house you are renting. Do a good cost-benefit analysis of the apartment or house that you are going to buy or rent. If you are not careful, you will spend the rest of your life paying someone money in rental fees. Why not persevere in a smaller house and save towards a bigger house in the future? Haven’t you heard that the sacrifices and pains of today are the enjoyments of tomorrow? You can also save on electricity by doing simple things like switching off lights, buying energy-saving bulbs, and using renewable energy as much as you can. Cutting on water bills is also achievable by making shorter trips to the shower (we did not say fewer), repairing leaking pipes, and switching off running taps.

9) Have a retirement saving plan

If you are employed, permanently or otherwise, you can make huge savings by taking advantage of your employer’s pension plan. Do not ever thing you will be young forever. Talk to your employer and tell them you want to save money towards your retirement – with a target. You can target to save 350K by the end of your five-year employment contract, or if permanently employed, 5M by retirement age. These plans can help you immensely when you retire. What will happen to your kids if, God forbid, you die before you retire? The money you saved towards your retirement will go to your beneficiaries – the people you love and care about so much. Therefore, saving money through a retirement saving plan is the one of the best money saving idea you can ever have.

10) Stop making unnecessary calls

A friend decides to make a call to his girlfriend who is in the sitting room from the bedroom. No, that one is okay; it sounds romantic. Let’s use an example of a man calling a friend inviting them for lunch. Just say, hey! Can you come over for lunch? Okay. Simple. Do not start narrating stories that you could talk about over lunch. After all, why was he coming over for lunch anyway if you start exhausting the conversation over the phone?

Be Wise, save as much as you can, even if it is nothing. Saving can simply take the form of reducing costs. Most importantly, avoid debts if you can, and I know you can.

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