2020 has been a tough year for all of us – it has made us realize that we don’t need some of the things that we used to spend insane amounts on otherwise and that our mothers were right about saving money. It’s never too early or too late to start – everyone can save money wisely if they know how to do it. Here are some tricks on budgeting that will help you save money every month!
Trick #1 Don’t forget what you’re saving for
Saving for a vacation, a laptop, to pay off your student loans? Whatever you may be saving for, setting up visual reminders in places you look the most will help you stay focused and save more.
If you’re planning a vacation to see the northern lights, put up a photo/visual reminder of it in your bedroom, workstation, and even your bathroom. All these photos will remind you of your purpose.
If you love online shopping and can’t help it – try changing your phone and desktop background to a photo/creative that represents a fat zero or an empty wallet. This little activity will take the excitement out of your usual online haul.
Trick #2 Explore cheaper plans
Our phone and television plans can sum up to be quite hefty. Revaluate your needs based on your consumption – choose the subscriptions that fit your lifestyle. You can alternatively decide to split television or online app plans with your roomis to make it more sustainable. Remember, there are always cheaper plans and subscriptions available in the market which can help you save a lot of money.
Trick #3 Follow the 48-hour rule
So you saw this really cool thing online, and you can’t wait to move the item from your virtual cart to your home. Give the item 48 hours before you buy it. You will only buy something that you really need, which makes your day to day tasks more manageable. Impulse buys = temporary happiness. Studies show that the joy of impulse buy is momentary, and an individual feels more stressed to have not saved that money. One of the best ways to cut expenses and save money is to give any buy 48 hours of consideration – if you really need it, you will be back to purchase it.
Trick #4 Use cash instead of cards
This trick is relatively simple but highly effective. If you have a specific weekly spending amount, encash it and use it for all your week’s purchases. This way, you will be able to track your expenditure and keep tabs on how much is left. Cards have a way of making us feel less guilty about our purchases and expenses. With cash, the parting pain is much greater compared to plastic tapping and swiping.
Trick #5 Bargain
Thrift shopping is like treasure hunting; one won’t know what they might find. These places say that they have fixed prices, but you can always talk sweetly in conversation and with bulk buying, and you could bargain for a better price. There’s no harm in trying – imagine getting a great deal on that almost new television set or a gorgeous furniture piece.
Trick #6 Put your savings in the bank
If you can’t control your spendings – give it to someone more responsible like the bank. Your bank can help you maintain a savings account, which you will find easier to manage.
Trick #7 Watch and reward yourself
Make short term(3 months) and long term goals(two years). When you reach your goal, make sure to reward yourself. Choose something that isn’t too extravagant – get yourself a cute pair of earrings, a piggy bank, or just enjoy your favorite meal at a cafe.
Congratulations, you did it!