Saving money is always on everyone’s mind. You think about it while you plan your weekly or monthly budget, review your bank or credit card statements, and while you shop. For those that are diligent in reviewing their own personal finances, it’s relatively easy to spot areas you could have saved money. For others, saving money seems difficult especially when you are on a tight-budget, fixed or low income, and especially during the Holiday season when you have to get gifts for friends, family and co-workers. Even those that find it difficult, should be able to understand the importance of saving money, so we offer our simple, yet effect money saving tips to help you along the way.
Money Saving Tips
If you don’t currently maintain a weekly or monthly budget, start now! Tracking your expenses and understanding how much you spend is highly important. By creating a list of all your expenses and income (i.e. budgeting), you can spot areas where you can cut back. Always be sure to review bank and credit card statements for purchases you made during the month, and if it’s a recurring expenditure, consider reducing or eliminating it. For example, do you need to have a land-line at home, when you have a cell phone? Think about these things, reduce or reallocate when possible.
Eliminate Impulse Purchases
Retailers are excellent about getting shoppers to spend more and even when you know their tricks, you still might fall into the purchase, because your impulse to buy is too strong. For most impulse buys, that extra purchase shouldn’t break the bank (e.g. a candy bar), however, when you drive by a car dealership and see that shiny, brand new car in the lot, this expensive purchase could have an impact on your finances. The opportunity to experience buyers remorse is more likely with an expensive purchase. Try avoiding impulse purchases by creating lists of the items you need (e.g. grocery list), and stick to it when shopping.
Save Loose Change
We tend to use our debit and credit cards when purchasing items these days, but when using cash, always put the change in a can or jar so when it becomes full you can deposit it in your savings account. You will be surprised at how quickly your change adds up. Even for those that use a debit or credit card, you too can make a list of the change you would have received had you used cash instead. Take that amount and transfer it to your savings account when appropriate.
What are some ways you and your family save money? Share your tips in the comments section below.