Money-Saving Tips: Optimizing your 20% Expenses
10 General Money-Saving Tips for Everyday Life
You may not have control over the economy, but you do have control over how much you spend. Below are 10 simplified ways to manage your finances effectively.
1. Keep track of your spending.
Know where your money is going. If you know where your money is going, it will be easier to make changes if you need to. Write down a daily, weekly and/or money budget of how you will spend your cash.
2. Learn to separate wants from needs.
Only spend money when it is absolutely necessary to do so. Ask yourself this simple question before making purchases, ‘can I do without this product or service?’ If your answer to that question is yes, I sincerely don’t think you need to make that expense.
Difference Between Wants and Needs
in the field of economics, a need is an essential requirement or a necessity, whereas a want is a desire. The fulfilment of needs is essential for one’s survival, whereas the fulfilment of wants is not essential for one’s survival.
3. Do not pay your bills on credit.
My friend, do not buy things on credit. While it may make things easier now, using credit only increases your monthly payments in the future.
4. Maintain a regular saving culture
We can’t overemphasise this. Save a percentage of your income. Save in the bank, but most importantly, save in assets. Acquire asset. Learn how to go about this.
5. Check your insurance policies.
Check out the coverage of your insurance plans. You may have too much and be wasting money, or too little and not be adequately covered. Research the best coverage for you at the best price.
6. Mind how much you spend on periodic purchases.
Periodic purchases like gifts, holidays and vacations… It may feel good to spend the money, but you may wish you had not spent that huge sum later on.
7. Cut some of your services.
Cut down on your cable subscription, data subscription and call credit subscription. If you have a cell phone, consider cutting your landline. Just cut down on most of the services that you can do without.
8. Attempt lowering your energy bill.
Turn off appliances and lights when they are not needed. Purchase energy-efficient light bulbs. When you can, use a fan instead of air conditioning or put on a sweater instead of turning on the heater. When you do these, you are saving more.
9. Consider signing up for online bill payment.
Online bill payment is efficient. Not only will you save on stamps, but you can make sure your payments are received on time.
10. Reduce take-out orders.
Even if the meal, product or service is not expensive, doing it frequently can really add up. A $20 pizza once a week will cost you over $1000 a year. Huge sum if you ask me.
Your financial security is in your hands. Learn to save more and spend less. I do hope these tips help you.
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