Best Ways To Save Money: Monetary freedom, isn’t the whole world revolving around it? Generally, you, I, and others have this notion in our minds that in order to retire rich, you need to earn millions. Earning a decent remuneration is definitely certain but is this the whole picture? I am afraid not.
Where does the trick lie? – Well, the trick lies in the power of saving.
We personally know a ton of those people who have earned below par for their entire lives but have managed to retire rich. If you are diligent enough to know how this works for people with a median wage, you need to rely on the power of religious savings.
Moreover, you also need to know how to put a full stop to reckless spending in order to save money. With the title, the picture gets a little clearer but we have barely scratched the surface yet.
The best ways to save money is by cutting back on the big stuff. However, cutting on big kinds of stuff doesn’t even remotely point to living in misery. No, it doesn’t! Then what does it mean in its true form? Let us all know in this article.
1. Maintain a Ritual
Consistency always works out. For your monthly expenses, you need to maintain a ritual to save your income. You might perhaps save 100 bucks a month by choosing a cheaper alternative to your monthly errands but if you do it consistently, you will definitely see a positive change in your savings account.
- Revise of Dish/Cable plans and switch to a cheaper monthly plan.
- Cancel unnecessary monthly subscriptions.
- Remove your saved credit card details from your most used online stores.
- Cut down on your food expenses by cooking meals yourself instead of ordering them online.
Such rituals individually wouldn’t reflect a significant amount but collectively such rituals manage to save a heck load of money.
Also read: The Best Ever Solution to Save Money for Salaried Employees
2. Validate your needs
Not validating your needs is one of the major causes of reckless spending. You’re smart enough to back up your own choices to shop.
You know, there aren’t going to be enough clothes, gadgets, footwear, and what not in your wardrobe no matter what the number of such stuff you purchase.
Us humans being rational thinkers have this capability to justify each of our purchases. We can start this by asking these questions whenever we pick something up from a shelf:
- Do I really need this?
- What was the last time when I made the same purchases?
- What purpose am I purchasing this for?
Validating your needs make sense whenever you are going to put a significant amount of money on a commodity. If you really need it, you can purchase it by all means. However, if there is no specific need for the same, you can always use the saved money to something significant and crucial – say, your rent.
Quick read: What are Assets and Liabilities? A simple explanation.
3. Optimize your “big expenditure”
It is quite clear that 1. Housing and 2. Transportation is the two most “fund-eating” necessities we have to pay for every month.
No matter how big you are earning, you’d have to pay for rent and transportation costs unless you are of course living in your own house. If your savings are actually taking a toll on you, you need to reconsider your choices.
All you have to do is to carefully monitor better options. If you can, switch your high rented apartment and move into a cheaper one. However, saving money shouldn’t be corresponded to living out in misery. On the other hand, for transportation, switch to the means of public transport.
Walking more often to run regular errands also helps not only in saving your income but also helps in maintaining your body shape.
BONUS (For students and recent graduates)
4. Consolidate your Student Loan
Putting all your eggs in one basket is never considered a better option.
However, when it comes to something like education, one doesn’t think twice about doing so. We must tell you that opting for an education loan is a commitment for a longer duration. If you have a student loan on your head, we have a couple of life-saving tricks – one of which is to consolidate your student loan.
Statistics say that it takes anything from 15 to 20 years on an average for a student to repay his/her loan.
Consolidation means to merge multiple loans into one single frame which makes sense to save interest amount. There are various consolidation options available all over the internet to explore. Private Federal Consolidation options still prevail in the market which sometimes is quite beneficial as well.
We know how it sometimes gets difficult to cut down on your regular expenses but you must realize that there is always more than one way to get through with things. This holds true for the financial sector as well.
We wish you all the good luck saving!
