Tricks On How To Save Money
Many people can save money because they are disciplined and consistent in their personal financial situation. You can make it as well. The saving money will give you peace of mind in case of an emergency. You can manage to grow your saving money.
A hundred dollars per month you can save will add up to twelve thousand per year. Imagine on the double or triple amount you can have and make it bigger and bigger, by investing in the stock market, starting an online business, or exploring new business.
Many tricks that I and my family have practiced for many years. We can witness that those tricks work very well especially around a moderate family.
10 Tricks On How To Save Money
Daily money-saving tricks
1. If You Don’t See You Don’t Buy
Perhaps you want to entertain yourself with window shopping. You do not need anything for yourself. In reality, you may end up buying something you never plan or need to have.
Many times, when we saw merchandise items presented in the store, we thought that our loved one may need or like it or we may want it some days.
Merchants have very good marketing strategies to attract customers. The best way to avoid the trap is not to see it.
Be aware of online shopping as well. It is another trap that you may buy stuff that you never think you need to have it or buy it at all.
How many times we purchased with emotion. We may never use or use it only once in a year or a couple of times in several years. We were trapped by the appearance, presentation, and a special offer that persuade us to own it.
If we think we may be tempted, we should not open any chances for it. Believe me, you don’t see you don’t buy. That’s a great way to save money.
2. Do Some Research – Don’t Buy At The First Sight
When you search for something important to buy, like a laptop, clothes, or toys, you found something to match for your needs. You may think it is good to purchase it. Sometimes the offer is so good. We do not want to lose the deal. You may find out later you that do not get a good deal at all.
Due to the high competition in the market, each merchant wants the customers and continually offer good deals or complements like free guarantee services, money-back guarantee, or promotion discount within a limit time. We think we must take the deal right away.
It is wiser to do some research or shop around and compare the price for anything that is important and pricy. Customers are kings in the market. Keep in mind that we lose that deal, we can find another deal from a new merchant most of the time.
3. How Much Per Use?
When you think of how many time you will use the merchandise, it helps you determine if it is necessary to own it. For example, you want to buy a four-wheel-drive vehicle, but you work in town and rarely drive far away. Ask yourself: Is it necessary to own a four-wheel drive? If you think you will drive it every day, make sure you have a budget for high gas costs and maintenance costs.
If you think you will drive your family across the city twice a year, renting a car may be a better idea. You can save money from the car loan interest, insurance premium, and maintenance charges. On the other hand, used vehicle price does not climb up because of the nature of depreciation and lower condition, and new modern style in the market.
You can apply this trick for many items, such as your wedding dress, party appliance, books, or a music instrument.
4. How Much Does It Cost You To Work For?
You will calculate how long you have to work to cover the price of the stuff you will buy. How many months you can cover that price with your current income and your saving? That will give you an idea if it is worthy to buy it now.
For example, a giant TV is great for the family having entertainment at home. You may think your family will use it every day which is worthy. Think about the price. How long do you have to work for it?
If it will take you longer than 1 month saving to cover that price, it is a greater consideration to postpone the purchase.
5. Go Shopping with a List
Try to avoid going out for weekly shopping without a shopping list. Before you going out to buy grocery or household appliance, you have to work a little bit in advance. Check your pantry and make a grocery list. Check your storage what you have or what needs to replenish. It will save money from buying the same thing or extra non-necessity items.
Prepare a shopping list is helpful to avoid buying the stuff you do not plan. Sometimes you have to stay firm and not to walk around the store. Otherwise, you may end up with many things not in the list because of the attraction of many good deals. Stick with Trick# 1, “You Don’t See You Don’t Buy”, and be consistent with a shopping list.
Monthly money-saving tricks
6. Prepare Your Budget
A simple professional tactic to save money is preparing your budget. The first top items to put in the spending budget are necessity items you must have, such as food, utility bills, phone air time charges, gas, and medicine in case you cannot avoid. The rest of the income will proportionate 30% for other preference and 20 % for saving.
In the case of the whole amount of income is budgeted for monthly necessity items, you do not have money left for other items or saving. Unless you can save costs of necessity items or work for extra money, you can spend on other preference, like a trip, movie, special restaurant meals, or pricy clothes.
If you have enough income room for everything, it is recommended that the budget percentage will fall 50:30:20 for must-have, other items, and saving.
7. Spend Less Than You Earn
The best tactic for saving money is not spending money more than you earn. This trick will help you have a debt-free life. Until you earn enough to afford, you may consider spending more.
Avoid using your credit card to spend in advance. A credit card is supposed to be used for making your life more convenient and taking advantage of a short credit term. Usually, the credit card company allows you to pay back a minimum amount, you will not take that offer at all. Always keep in mind that you will spend less than you earn and stick to the budget.
8. Warren Buffet LifeStyle
Live and drive in a modesty lifestyle can save your money. An example of a millionaire Warren Buffet, he still lives in the house he bought in the 1950s and driving an equally modest car.
You can save lots of money for investment or your for emergency needs instead of spending it on luxury life.
Do not buy items more than you need or choose a higher grade or brand name items with extra costs if you can live without it. Think twice before making a decision.
If you can weigh it worthier to choose a premium grade or brand name item than an average item, and you cannot live without it, that the only good reason to choose.
Be generic in buying stuff and not one for lavish purchase will save more money.
9. Credit Card Cycle Management
The credit card cycle management trick is recommended for you who follow all the previous tricks. You use a credit card for your convenience not for creating debt. You can take the most advantage on a short credit term by having credit cards from two companies and follow the following tactics.
Pay each credit card at the due date, not before or after the due. You miss one day it costs you a very high-interest charge. Pay before the due date does not save more money.
Use a credit card during the first two weeks of the new period of the credit card due cycle. This tactic works well only when two credit cards have two weeks apart on the payment due.
With this trick, you will have cash stays in your bank for longer than 30 days. At least you may get some extra interests from the bank and you have more rooms to manage your cash flows.
10. Payoff Debt and Avoid Debt
You will have a more peaceful life if you are debt-free. It is difficult to have a free-mortgage house or free-loan vehicle. These items may be considered a must to have items. You must have budget management. You will manage the budget and cash flows to repay the home mortgage and car loan.
An installment item is the top priority item in your spending budget. When you have more cash available, take the opportunity to repay more. It will significantly reduce loan interests and shorten the installment period.
Refinance is another option you may consider when the interest rate decreases.
It is never good to create debts for non-necessity items, such as a home theater, a new furniture set, a kitchen renovation, etc.
Unless what the spending is an investment, you will avoid debt. If a home renovation can upgrade the house price that you will sell. That is an investment. You can sell your house at a higher price due to the premium costs you added. Investing in education that can enhance your future career is an investment as well. In nutshell, if the debt can pay off in the future, the debt could be a good investment.
If you have debt, try to pay off as quickly as you can. Set the budget for monthly repayment.
Stick to the rule of “spending less than you earn” and “within a budget” will help you have a debt-free life and save more money.
You have a plan for your money by preparing the budget and apply all the tricks. You are a generic person not stick to the brand or lavish lifestyle. You spend within the budget and have savings every month. If you follow all those tricks, you will save more money and you can grow your money in many ways.
Be disciplined, simple, and consistent, and work more to have extra money, you can save and grow your money.
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