When you think of having money, you probably look towards your favorite actors, singers or celebrities that, to be honest, get handed their money on a plate (which we definitely wouldn’t object to). However, saving money doesn’t need to be something for the elite, anyone can do it! You just need to know how. These pieces of advice on money saving are from regular people, just like you and me.
Set out your financial plans
When it comes to life, there is one thing we all have in common – everything costs money. Whether you want money to get a mortgage, buy a new car, save for your retirement or quit your job to travel the world, you’re first going to need to save, because unfortunately, we don’t have money trees. Setting out your financial plans is one of the most important aspects in saving money effectively. Work out exactly how much you need to do what you want to do, and realistically how long it will take you to save this money. With this in mind, you’ll be less inclined to spend money on unnecessary things. Taking a $10 Uber instead of walking? That’s one night in a hostel in Brazil, which would mean you’re $10 further away from your goal. So walk.
Don’t consider your debts your own money
Okay, we live in a world of debt. Most of us have debt, whether it’s big or small. But when we look at our bank and our overdraft, we often view that -$1000 out of our -$3000 limit as our own money. Well, we hate to break it to you. But it’s not. Every dollar of debt you owe should be viewed as a negative in your bank account, and it’s important to realize this when you buy something or begin to save because you will need extra to get yourself out of the red.
Don’t change your lifestyle
If you’re lucky, you may get a raise at some point in your life or career. If and when this happens, do not change your lifestyle to suit this new figure – because you will be in exactly the same position as you are now. Instead, continue your lifestyle as if you hadn’t been given this raise, and use the extra money as savings. Place them into a bank account each month and watch the numbers grow higher and higher to spend or save on whatever you want.
Open a second bank account
Many of us just have the one main bank account where all of our money comes in and out – and they’re normally with banks that have ATMs all over the world, and your money normally goes pretty quickly because it is so easy to spend. Opening another bank account that proves more difficult to access is one of the best ways to spend money. For example, a bank account that doesn’t have a debit or credit card, or a bank account with a company which doesn’t have readily available ATM’s. This way, you can pile off a portion of your wages into this account and keep it safe, where you’re least likely to spend it.
Never spend more money than you have
It can be very appealing to apply for a credit card, vow to only use it for that thing you really need – and then continue to use it. Credit cards are great for big purchases all in one, but they are disastrous if you’re trying to save money. You always need to ensure you never spend more money than you have, as this will put you even further in debt. So if you are planning on spending money on your credit card, aim to pay it off as soon as possible, and never buy anything that you know you can’t pay off straight away.