What Is the Best Way to Save Money?
Best Way to Save Money if You Have Not Started
The best way to start saving money is to think about the tremendous benefits that you will accrue if you begin saving today.
No matter how old you are, you can always fight back and win. It is never too late to start saving. Other people have achieved financial success even after starting late. If they can do it then so can you.
The key to success is to start saving today. Now is the time.
Best Way to Save Money if You Have Started Saving
Even if you have already started saving money, you should realize that there are better ways of saving money.
Beware of complacency. You must realize that there are always better ways of doing things.
This is in line with the proven philosophy of continuous improvement called ‘Kaizen’. This tried and tested principle is the secret behind the success of the Japanese economy. According to this principle, small improvements on a continuous basis will lead to success.
On the basis of this principle, you can take several steps to maximize savings for financial stability and prosperity.
Always Look for Ways to Cut Major Expenses
If you have to pay rent for your accommodation then you should always look for less expensive opportunities. If you look around, you may find cheaper places to live in which are still good enough. You should pay serious attention to lowering you rent since this can save you a lot of money.
If you are single, then you should think about living with roommates to save money that you spend on rent.
You can save yourself a lot of money by looking for car loans on the best terms and conditions.
To get the best car loan you should maintain a good credit score and apply to the best auto loan lender that charges the most competitive interest rates. This way, you can save plenty of cash.
You Should Pay Yourself First
When you get your paycheck, instead of paying bills or other expenses, you should pay yourself first. If you do this, you can save a substantial amount of money over a period of time. The earlier you start the better.
You should make the process automatic. You should make an arrangement with your employer so that a fixed percentage of your paycheck goes into your savings account. This is the most important bill that you are paying every month.
Staycation Rather Than Vacation
Instead of paying enormous sums of money for an overseas vacation, you can visit many great places close to your house. Become a tourist in your own hometown and adjoining areas. Staycations are becoming increasingly popular since they have many advantages. You can go on a vacation without leaving the comfort of your home. You will discover many destinations close to your home which you probably didn’t know about. You can even arrange fun filled activities with family and friends in your own backyard.
Become Energy Efficient
Utility bills are likely to increase over the long term. By making the smart move, you can save yourself a lot of money on increasingly expensive utility bills.
Get in touch with a certified professional and request them to perform an energy audit of your home. After the audit is completed, you will get recommendations like installing new insulation, purchasing high efficiency appliances, sealing doors and windows and more.
You will need to make a small investment on the audit and its recommendations. But you will be paid back handsomely through significant savings in energy bills over the years. You will gain satisfaction by saving substantial amounts on utility bills while many will be facing rising energy costs.
Save on Food
By saving on food, you will accumulate a significant amount of money in the long term since this is an everyday expense. Suppose you purchase lunch at your office worth $10. If you can make lunch at your home for just $5 then you will save around $1500 each year.
Another obvious trick is to stop dining out. Instead of having lunch and dinner outside at exorbitant prices, you can prepare the same food within the comfort of your home. With just a little research, you can gather several great recipes from the internet for all of your favorite gastronomic delights. You will gain a valuable life skill this way. We all know how to eat but not everyone knows how to cook. The joy and excitement of preparing your own recipes is much better than dining at expensive restaurants. You can also impress your friends and family with your culinary expertise. Cooking is literally the most delicious hobby of all. Your kitchen can become a great destination for crafting exciting epicurean escapades.
You can find many great resources on the internet for preparing inexpensive gourmet meals. Enjoy great tasting food at low cost. You can have your cake and eat it too.
Stop Watching Cable TV
Cable TV not only wastes a lot of money in the long term, it also wastes something more precious than money itself: time.
According to an estimate by Money Magazine, cable TV subscriptions can touch $200 by 2020. This means that you will be spending almost $2500 on cable TV by 2020. This exorbitant bill will keep increasing each year.
You will also spare yourself from watching incessant infomercials. These programs have just one agenda: to find creative new ways of convincing you to part with your precious hard earned cash. By refraining from watching TV, you will save a lot of money. You will avoid being coaxed into the purchase of unnecessary products that are aggressively marketed on TV.
You should terminate your cable TV subscription once and for all. You will waste far less time on TV and spend more time with friends and family. You can also use the extra time that you have gained in many great ways.
Save and Invest Your Precious Time
This may very well be the best tip of all. Saving money is important but saving time is even more crucial.
For instance, you can utilize your time by doing research on stock market and bond market investment. This is a highly technical field which will require plenty of dedication and hard work for you to master. Through this research, you can accrue plenty of benefits by making sound financial decisions.
You can also learn about financial planning for making the best financial decisions without needing to rely on anyone else.
You can also learn new skills or engage in lucrative part time work (like freelancing) to earn extra income. If you are resourceful enough, you can expand your side activity into a fully fledged business.
Remember, time is the most important resource. You should invest not just your money but also your time for financial success and fulfillment.
Finish Your Gym Membership
Ending your gym membership does not mean that you have to give up your fitness goals. There are much better ways to achieve your fitness dreams other than a gym membership.
If you are new to fitness and unmotivated then getting a gym membership is a good idea to get into the habit. But once you develop your rhythm you should discard your membership.
A home gym does not have to be expensive. You will be surprised at how little equipment you need for your fitness goals. For instance, if you are interested in natural bodybuilding you need only some basic inexpensive equipment for impressive results. You can see several real life examples of people who have achieved more with less equipment.
You should do your own research to find out how much equipment you will need for other forms of exercise. You will find that in order to remain fit you need far less than you imagined.
Besides, nothing can beat the convenience and comfort of a personal gym. You won’t have to waste your time and wait for people to vacate your favorite gym equipment.
Subscribe to Great Customer Rewards Programs
Competition is getting more intense and retailers and sellers are looking for new ways to entice new customers. Since competition is increasing, retailers have to devise new promotions that offer greater value to customers.
You will find that almost all top retailers are offering lucrative rewards schemes. You should take advantage of these wonderful offers to save as much money as you can.
Do your research and investigate every major rewards program. It may take some time and effort on your part but it will be well worth it. You will be handsomely rewarded for your diligence.
You should pay particular attention to rewards credit cards offered by leading stores across the US. However, you should be very careful and not fall into the trap of buying everything you fancy just because you wield a credit card.
There are plenty of resources on the internet which inform you about the pros and cons of these credit cards. If you are wise enough, you can use these credit cards to improve your credit rating. You will save even more money this way because you will be able to get loans at low interest rates.
However, you should remember to always pay your bill on time. You will be able to pay your bills on time if you purchase within your means. The best way to do this is to make a budget. You should make a budget for gas, retail, groceries and other expenses that will optimize your savings and allow you to make necessary purchases.
Never be tempted to purchase beyond your budget. Your budget amount should be written in stone and you must never compromise. If you find that you have gone past your budget and still need to purchase something of value then you should be a little judicious. You should postpone your purchase until next month. This way, you won’t deny yourself anything good, nor will you ever exceed the budget.
By following these simple guidelines, you will make great savings instead of falling into a debt trap and becoming yet another credit card casualty.
Master the All Important 30 Day Rule
Patience is the greatest virtue when it comes to making successful financial decisions. You must bide your time and wait patiently instead of diving headlong into a rash purchase.
Perhaps you have seen an amazing smartphone that has remarkable features. Your first impulse will be to buy it as quickly as possible. But you must resist the temptation and be wise. Very often we purchase something capriciously only to find out that it wasn’t really worth it. We end up regretting our decision and wish that we were more thoughtful.
By allowing thirty days to pass you can accurately judge whether your desire to purchase is based on prudence or caprice. If you lose your interest, then the purchase was obviously not worth it. If you are able to sustain your interest then there may be sound reasoning behind your choice. In any case, waiting for sufficient time is vindicated.
You should never be tempted into buying a new model immediately. Instead, you should be a little patient and allow some time to pass. This will yield great benefits.
You should wait long enough to gather enough honest and independent reviews to guide you. More often than not, these reviews indicate hidden flaws and serious problems behind greatly hyped products.
Better still, a worthier model may be released within this time period. You will be rewarded justly for your patience and wisdom.