There’s a saying that goes, Money doesn’t buy happiness, but it sure does pave the road to a better life. Having money saved is your road to freedom of choice. Many people are unable to make changes in their lives just because they lack the financial freedom that can help them. Wanting to make a life-changing behaviour but not being able to due to a shortage in finances is not something you will enjoy experiencing. Saving money is not a skill we all possess, but luckily it is something we can learn. Here are some tools and tips to help you save some pennies for the rainy days.
Although this tip is the oldest one in the book, we think it is one of the most effective. If you are new to the world of budgeting you might find it challenging. However, once you get used to keeping tabs on all your spending, things will get easier. Sticking to a budget might sound restrictive and boring but in fact, it is the most disciplined way to save and spend in moderation. Budgeting helps you make room for fun activities and buy what you want; it just helps prioritize your wants.
2. Certificate Deposit
This is one of the bank’s products- simply put a certain sum of money untouched for a specific amount of time and in return, you get interest at an excellent rate. What is really great about this option is that it provides higher yielding interest rates for consumers than other investment options. It also is better than taking the risk that usually comes with other investment types, and you also get to take your money back after the time you agreed upon passes.
3. Avoid Impulse Shopping
In a world where you can get pretty much everything you need with just a press of a button, it becomes very hard to fight temptations. To avoid this behaviour you have to start off with understanding why we buy on impulse so that you can develop a set of habits to help you control your spending in a practical way. Our brains can be rewired and trained to behave differently if we put in the effort. The act of buying without thinking is damaging for both our mental and financial status and has to be changed.
4. Save For Specific Purposes
Saving without a specific goal is not going to be helpful. It is better if you have certain saving goals. These goals differ from one person to another, but what is common between most of us is an emergency fund and paying off our debts. If you happen to be in debt, saving to pay it off will give you the right motive to put some money aside. It is also advisable to save for an emergency fund- this fund should have an amount of money that you can live with for a minimum of 6 months, in case you happen to lose your job, for instance. It can also be used to pay for any expenses that are necessary and unplanned. Other than that you can save up for your home renovation or a big purchase like a car. Saving for retirement is something else we encourage you to consider. We all dream of the time when we can stop working and smell the roses. Do your maths and see what you would need to comfortably retire, and work towards reaching it. Watching your savings grow towards a certain number is extremely motivating and will help you in limiting your spending and eventually it will become easier to only buy what you need.
5. Take Your Lunch To Work
Making your own food is not only better for your health, but it will also help you save instead of spending money on food. There are many meal prep recipes that you can try to make sure the food itself is tasty and something you look forward to.
If you are not a saver you should probably start working towards changing that. Having a sum of money put away will make it easier for you to not only buy what you need but to make decisions without being anxious about whether you’ll have any money left or not. Something like changing your job, for example, or shifting your career will not be easy if you do not have any money saved. If you happen to be married with kids then saving will help you ensure a better future for your children and increase your sense of security. Saving will also enable you to schedule fun activities without breaking the wallet, traveling, for instance, is a dream for many people but it requires money. Saving for a trip helps you enjoy it without feeling guilty or scared of the future.