6 useful pieces of advice if you want to reduce your spending
Photo by maitree rimthong
The biggest prejudice about savings, and also the excuse for many, is that savings are reserved only for those with high incomes. This implies that rather than saving every day and putting the additional money away immediately, we overlook saving as a good habit.
Saving has nothing to do with the amount of money we have. Saving is about saving fuel, saving electricity, and the amount saved is just a manifestation of that frugal behavior, and that is what needs to be best understood. It also refers to the time we save – instead of waiting in lines to pay bills or pay for groceries, we can do it at our neighbor’s.
To get started, you need the right motivation to save and then an idea of concrete steps you can follow on your way to saving. If you’re wondering how to save money, read our tips and start managing your budget smarter.
Make a plan
And with so little money and big wishes, how to save? First, sit down and make a list of things that you need to buy that are necessary for you. Forget the rest immediately and buy only the necessary things.
Let’s start with the food
We are used to every lunch having meat. Change those habits and introduce more vegetables and soups. If you’re not a fan of soup but prefer pizza, then bypass expensive restaurants and consider Little Caesar deals, since they’ve become widely popular for their super affordable pricing and coupons and their Hot-N-Ready pizzas. Moreover, we regularly have leftover bread and then throw it away. Toast old bread in a toaster and make a warm and crispy sandwich, or cut it into cubes, season with olive oil, oregano, and vegetables, and toast on a grill pan. You’ll get nice snacks, and you won’t waste bread.
Cut down on snacks and sweets. That way, you will spend less money and you won’t gain weight. Eat one carrot instead. Although you may not be used to it, you will come to love it over time and happily snack on it. Whenever you prepare vegetables for lunch, peel a carrot for each of your children, and let them play pretend to be bunnies.
Make an overview of spendings
Photo by Karolina Grabowska
If you don’t know how much money you spend every day, you won’t know what you have at the end of the month. Therefore, in the following period (from the first to the last day of the month), pay attention to every bill – but also to every item that can be missed. Whether it’s billed for utilities, fuel, groceries, drinks, or going to the hairdresser – put everything in a pile and add it up.
Define priorities
Sometimes it may not be easy to decide which items are important and which have lower priority status. Try to classify the expenses into one of the following three categories:
- Needs: these are things that are necessary for life, such as rent, utility bills, food, credit, etc.
- Desires: things that enhance life but are not essential
- Enjoyment: things you enjoy but can easily throw away
Save for the future
If you’re paying off a loan or have other debt, figure out what you can cover each month as much as possible. If you are not in debt, set aside a certain amount of money in advance at the beginning of the month (or when you get paid). Check with your bank to see if you can activate a standing order. It’s a great way to control costs.
Plan ahead
When you get paid, compare the needs, wants, and enjoyment items with the amount of money available. If that sum does not cover all three categories, discard the pleasures first. If you have to, due to debt or too long a list, take away the wishes as well. In this way, you will manage to get out of financial problems in the most painless way.
Automate your accounts
Other effective ways to save money include automating your bills and expenses by scheduling recurring payments. Then, go through last year’s bank statements, add up the total amount of money you spent on fees or overdraft fees, and commit to saving the same amount in a savings account this year. Consider using bill automation apps. This allows you to automate payments through the app, as well as keep a close eye on your savings progress with reminders and spending reports.
If your desire to save is strong, all this does not have to be a problem for you. Be persistent and, with our advice, we do not doubt that you will succeed. Good luck!
