How to Save Money: 5 Great Personal Finance Tips
Saving money: you know it can be a touchy subject. People tend to be all over the place on the thrift spectrum, and that can cause deep-seated differences of opinion when it comes to the best way to manage finances.
Nevertheless, experts agree that there are some core fundamentals you should follow if you want to save money. Follow these and you should see improvements in your financial life. Besides, whether you’re flush with cash or up to your ears in debt, you can probably stand to save more money than you are right now.
Nobody is Saying You Have to be ‘Frugal Frannie’
Before you get your hackles up about saving, please be aware that you don’t have to start making your own shampoo to save money. The simple act of questioning your expenditures from time to time can save you a lot. Since most people buy too much stuff and dine out far too often, even a tiny bit of effort here can actually add up to a lot.
So let’s get to it- here are 5 great personal finance tips that will help you save money starting this week.
- Eliminate ‘Emotional Shopping’ From Your Life
With cheap goods made overseas, plus a propensity for the modern shopper to view shopping as a pastime, a release, or a form of therapy, it’s easy to wind up accumulating way too much “stuff”.
Whatever your reason for overspending, figure out what it is and put an end to it. Maybe you go shopping when you feel the need to fill up a void in your life? Or maybe you shop to take your mind off things.
None of those reasons for shopping are good ones. Replace this behaviour immediately and you’re doing yourself a huge favor – one that will last an entire lifetime if you stay on top of things.
- Give it a Month
The best way to curtail overspending is to apply the One Month Rule to all your expenses. Need to buy something? Wait a month and see if you still “need” it. This eliminates emotional and “keep up with the Jones’s”-type shopping.
- Start Selling Off the Stuff You Don’t Need
Now for the challenge. You’re saving money by finding ways other than shopping to relieve stress. Up your game and start making money by selling all the stuff you’ve already purchased and which is laying around your home causing clutter.
You’ll make some cash. Put it in your emergency fund or pay off your credit card bills. Spending this cash on a shopping spree or eating out kind of defeats the purpose, don’t you think?
- Entertain at Home Instead of Going Out on the Town
Eating out and going to bars is a huge, budget-killing habit. Even if you cook an entire meal for your friends, it will be cheaper than going out for drinks (plus a whole lot healthier).
- Get Savvy With Your Credit Cards
Rule #1 of good personal finance is to get rid of high-interest credit card debt. But that doesn’t mean you should never use a credit card at all.
So many retailers these days are willing to reward consumers for shopping with them, so look at where you spend your money and see if you can leverage rewards to earn a little back.
Alternatively, get yourself a credit card that gives rewards for a wide range of retailers when you shop online through the credit card’s portal. These rewards can take the form of airline miles, cash back, or points towards free merchandise.
A final word of advice: don’t give up on saving money. Remember that it’s often the “little things” that add up to a whole lot of savings, especially in the long run. Good luck!
About the Author:
Michelle Custodio is the digital marketing specialist to Magnetic Trading, a team of professional index traders that offer advice to become successful FTSE and Dax day traders.