Whether you are saving up for something special like a new car or a house, or whether you are putting money aside for emergencies, implement some useful tips to speed up the process.
Some of us are better at saving than others. I remember my colleague telling me about how his wife is such a great saver. I asked what her secret was, and he said that she budgeted everything and wrote down all their expenses to keep track of what they spend. I said that was an excellent idea and that I would buy a white board to hang at home and write down my family’s daily expenses. My colleague pointed out that I would still be spending money on the white board, and asked why I don’t use paper instead?
Of course, he was right. Here are more tried and tested ways you can save:
Get it from work. Whether you get an annual raise or an end-of-year bonus, deposit the extra money into your Saving Account. You were able to live on your previous salary before, so you probably don’t need the extra cash for your day-to-day expenses.
Research cheaper options. When the time comes to renew your insurance – be it car, medical, home, or travel – do your research on what other companies are offering. There will often be cheaper alternatives and special packages if you look in the right places.
Cut out unnecessary expenses. Do you really need an expensive personal trainer to help keep you fit and healthy? Can’t you spend a few extra minutes in the morning to prepare your lunch instead of ordering food to the office every day? If you’re honest with yourself, you will recognize many little expenses that are not essential, and you would be surprised to discover how much you would save every month.
Downsize. If you’re having trouble saving money, yet own a gas-guzzling 4-wheel-drive, consider switching to a more economical car. What about your winter chalet? Do you really use it more than a couple of times a season? Especially since the skiing seasons have been getting shorter each year.
- Stop impulse buying. Have a look inside your wardrobe and you will almost certainly find an item with the price tag still on – that you bought a year ago. And if your smartphone is still new, why change it to get the latest model of the same phone when you know that yet another upgrade will hit the market in a couple of months from now. Keeping an expenses diary will help you recognize which purchases were necessary, and which weren’t.