This post was most recently updated on June 23rd, 2020
Most times, events and circumstances have to move in your favor in order to enjoy financial turnaround and freedom. These simple steps on how to save thousands of dollars this year can be very beneficial with huge benefits over time.
Out of these simple steps, Pick the ones that concerns you and apply it. Save some cash today.
Deposit some of your money in savings account. Buy cheap goods where necessary. Avoid accumulating debt and pay off any debts on the table. Spend money on things that are important. Save some money for emergency.
Plan for college expenses, retirement and emergencies. Save and spend wisely, spend less.
Don’t just save for saving sake, save some money for a purpose.
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You can save for an investment automatically. With your consent, a fixed amount of money should be transferred to a fixed account at every pay period.
Saving money can seem impossible in tough economy. Its pretty difficult to save money that you Will need the next day.
In other to save money, you need to make some adjustment to how you spend money. Check how much you spend on transportation, food, clothes and energy, and others. Cut off the ones that seems unnecessary at the moment.
Saving as a lifestyle
You’ve to trim your expenses so as to effectively save, calculating how much you save on daily, weekly, monthly and yearly basis.
Focus on saving big amount of money on daily, weekly, monthly and yearly basis. Saving small money is good but bigger savings is valuable.
1. Get a budget
Write down a list of what you want and stick to it when shopping. Sometimes, you may buy what you never Will need. Instead of wasting food, its recommended to stay within the list of items.
Budget your income at the beginning of a new month. Assign the expenses of each need to a certain amount of money for that month and avoid spending more.
Maintaining a tight budget is essential for you to effectively save. Keep a track of your expenses by recording all what you spent.
Start saving on time, don’t wait until when the income is half spent. This can discourage you from saving. Its a better advantage when you save as early as possible.
When planning budget, pay attention to most important expenses like food, energy, water, transportation, than on outings, clubs, social gathering, fancy clothes and party.
Write out your regular expenses and subtract it from your income before planning your Budget.
A budget will help you to know which need is consuming more of your money, why? and how to minimize it, without eliminating it, and save more.
2. Consume the debts
Debts can hinder someone’s financial freedom. Some debts can be avoided. Whatever you can do to avoid getting into debts, do it.
Some people get loan for college, house or a business project. If acquiring loan seems impossible, try to pay off on time to avoid spending much on interest.
The quicker you crush the debts, the better your chances of saving extra cash.
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3. Set your priorities
If you’re going to get a new house in the next ten years, you can start saving money for it today.
Know why and what you’re saving the money for. Don’t just save money for saving purpose, save for a reason.
Set goals that you can see and encourage yourself to save on time and wisely. For goals like retirement or marriage, depending on your income, it may require a tough financial decision to save responsibly.
Spend some time studying and researching on your goals before saving for that purpose. Saving for retirement is a long time goal and requires long time savings.
Set time frame before a goal is accomplished. For example, if you need to buy a house that is worth $200,000, you need to know how long it will take to save up to the amount and how much you can save each month to achieve that target.
4. Adjust your lifestyles
The idea to save money is challenging in such a manner that if not taken seriously, nothing would be saved.
You need to adjust everything you do with money so as to save and meet your target or goals.
Spend less than you earn, even if there’s no way out. If you spend more than you earn, it will jeopardize your plan to save for any purpose e.g retirement or house.
Put enough money for the future and stay out of borrowing to solve a problem.
Some people spend money on items they don’t need. They saw the goods at the shopping mall and bought it, only to later discover that it is not needed at that time.
Stick to your grocery list to avoid impulsive spending. Buying goods in bulk seems more cheaper than buying singly. You can save some dollars when you buy in bulk. Useful tips for families.
What mostly consumes the income of a person is buying lunch at work. You can save a lot of money by preparing a meal at home and take it to work. Its relatively cheaper to prepare your meals at home than to buy meals at the work place.
Used vehicles, laptops, phones, electronic gadgets and electrical appliances can be purchased at cheaper prices than new ones. There are quality used consumer goods that are relatively cheaper.
Don’t carry a lot of cash in your wallet, get a list, give yourself an allowance and stick to it.
Give yourself some time the moment you’re paid before spending from it. While you sleep and wake, you will discover that you don’t need those things, thereby saving some dollars.
Use coupons when shopping, in order to save certain percentage of the money.
Purchase items when they are cheaper and not during festive periods like Christmas and Halloween when they are costly.
Don’t ignore the discount days when about to shop. It is relatively cheaper and you can save some amount of money during black Fridays.
Purchasing and saving lifestyle
Sometimes you should ask yourself, do I really need this? Giving heed to the advert on the internet, television or in stores can make you to spend more.
Use the ATM of your bank than using other financial institution ATM, possibly once a week or in two weeks to minimize withdrawal fee.
Instead of buying costly books, you can borrow books from the library, although buying and reading books is a great action that is highly encouraged.
Set a limit for your daily expenses
Buy quality cheap clothes than spending more money on shinning quality clothes.
Close your eyes when you see certain expensive materials that tempts. Control the urge to spend money on that.
A lot of people have problem saving certain amount of money. Don’t get discouraged when trying to save some money.
Do away with luxury goods and services. It can be difficult to live without them, but you will notice that it is easy to live without them.
When you want to eat, pick cheap and nutritious foods than buying processed fast foods that are expensive.
How to effectively save thousands of dollars this year
Turn off the light bulbs, heater, A/C or any other electronic gadget when you’re not around. This will save more energy at your wish.
Buying and maintaining a car can be very expensive. Look for other means of cheaper transport, possibly public transportation, when going anywhere.
Book flight ticket on time in order to save some money. You can walk or use biking to work.
In a bid to save money, you’ve to avoid excessive drinking, smoking and addiction to drugs.
Sell the items that you no longer need.
You can save more money by picking up an old furniture that is still in good condition. If you have an old furniture, it can be recycled for money.
You can resist the temptations to spend money on luxury by staying at home. Buy DVDs and watch at home. Invite your friends to your home for fun.
Minimize your water usage, if you buy water. Instead of drinking bottle water, try drinking tap water through cheap filtration. Don’t wash clothes too frequently.
Unsubscribe from channels in your cable television subscription that are pretty expensive.
Borrow movies than spending cash to buy one which could be very expensive.
You can save half of your salary, yes its possible. Comments are highly needed, drop your comments below.
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Dickson Pentecost is passionate about inspiring people. He want to see people live life to a shout out, manage stress, make money, stay healthy, enjoy their relationship and be productive in life.