By Anubhav Srivastava. (Register For His Workshop – Super Confidence For Super Success)
Wondering How to Save Money? Then read this article. Money is something we all want, but it is unbelievable how little we respect it when we get it. If you can’t respect the money you get by practising healthy spending and investing habits, sooner or later you are going to lose it. It doesn’t matter how much you earn, good financial habits are a basic requirement for anyone looking to manage their finances.
This article is for people who are not filthy rich but are foolishly wasting away their money that could easily be saved. If you are one of them or are looking for ways to simple ways to save your money, read on and learn 20 simple ways in which you ensure you don’t lose your hard earned cash for silly reasons.
How to Save Money: Tip 1) Don’t obsess over branded items all the time.
We have somehow been fed with the idea that branded items are somehow superior to generic items. While in many cases it maybe true to some extent, the price you often end up paying just for the brand name is much more than the marginal value it provides in comparison to getting a generic item. If you cannot compromise on the quality for a particular thing, go for branded but for things where it does not really matter that much, use generic.
How to Save Money: Tip 2) Stop being an impulsive shopper.
Impulse shopping means when you buy something not because you need it but because you saw something and you had an urge to buy it right away, regardless of whether or not it serves a need. Impulse shopping is an addiction that can erode away the money in the bank very quickly. Before you buy something, give yourself a moment to think, whether or not you really need it. Give it half an hour or an hour and walk away for a while. It will give enough time to get good reasoning kick in and many times you will realize that you don’t need it. If after that you are still convinced that you absolutely need it, only then buy.
How to Save Money: Tip 3) Take advantage of Coupons whenever possible.
A lot of the things we purchase online have some sort of discount code available that can make buying them considerably cheaper. Always do an internet search for various coupons you can avail so that you do not end up spending unnecessary money. Without awareness of this you will be wasting a lot of money.
How to Save Money: Tip 4) Always compare prices.
Before you buy something, always compare the prices they offer with other sellers. This used to be a good strategy even in the pre internet era when people used to shop around with different sellers and now when you can buy things online, it is much much easier to do so. Whether it is an item you wish to buy, a hotel room you wish to book, flight tickets you wish to book, an insurance policy you wish to purchase or anything, go on the relevant sites that compare prices from different sellers so that you pay the best price and avoid wasting money.
How to Save Money: Tip 5) Avoid or give up addictions, especially those that have additional health costs.
If you are addicted to Alcohol, Tobacco, or any other thing you are going to waste a lot of unnecessary money monthly just to feed your addictions. Then many years down the line, when those addictions that have already taken a toll on your money, take a massive toll on your health, be prepared to a shell a lot more money in medical costs. The best advice here is to not take up those addictions in the first place, but if you are addicted then do whatever it takes to quit or it is going to cost you dearly.
How to Save Money: Tip 6) Don’t place complete trust in a “Financial Expert” or Manager to handle your money.
Nobody cares about your money as much as you do. Not your friend, not your brother, no one else and especially not a financial expert or manager. If you don’t want to part with your money, always keep your eyes open and do the relevant research yourself before you invest your money. Don’t just rely on the expert’s advice. It is okay to get advice, but it’s not okay to be blind. Same goes for your Financial managers. A lot of people who make considerable amounts of money get other people to manage their finances. Be aware of what they are up to or it won’t take long before you lose it all.
How to Save Money: Tip 7) Always pay credit card bills on time. If possible avoid making payments with credit cards.
Credit card companies have made it oh so easy to feed our impulsive buying addictions. Want that dress? No problem, just use a credit card and pay later! If possible, use cash or a debit card because then you can see the money leaving your wallet or account, which in itself will make you more cautious about what to spend on. If you have to use a credit card, make those payments on time. The problem is that the very business model for these companies relies on a percentage of people who are going to make late payments and then pay a hefty charge for it. Don’t be one of them.
How to Save Money: Tip 8) Stop buying things you cannot afford to impress people ALL the time.
Most humans have a need to impress people and that is perfectly fine. The problem is when you try so hard to impress people ALL the time when you can’t afford it. So you gifted a gold digging woman you have a huge crush on some expensive jewellery in the hopes that she is impressed by your wealth, even though you don’t have much money. What happens next, in order to maintain that fake display of wealth you keep giving her expensive items and taking her to fine dining places all of which burns a deep hole in your pocket. Eventually when she discovers that you are not as rich as you act like, she is going to leave you anyway and you can spend the next one year crawling out of the massive financial hole you dug yourself into. Money can’t buy love, that’s for sure. So get rid of your chronic need to impress with money, when you don’t have much of it.
How to Save Money: Tip 9) Avoid Membership costs for things that you don’t even use.
Most people sign up for expensive gyms thinking that because they have signed up, now they are going to be fit. This is particularly during the time of new years. The gyms then make you sign up on an expensive recurring membership fee. The first month, you go and train hard, the next month you slack off a little and by the third month you stop going at all. But you don’t cancel the membership thinking someday you will go, maybe like a few times a month. So you just ended up blowing a hole in your pocket for services you don’t even use.
You don’t need fancy exercise equipment to exercise. Consider making a one time investment in some exercise equipment, practice bodyweight exercises like push ups and run outside instead of signing up for expensive gyms. Or go for a more reasonably priced one.
How to Save Money: Tip 10) Don’t assume that just because something is more expensive it is better.
Just because something is more expensive does not make it better. If something is more expensive, it usually means it is costlier. Whether or not it is better quality or will serve a much better utility than a cheaper priced alternative depends on the situation. For example maybe spending more on a car with more features is justifiable than spending more on food that is more expensive and unhealthier.
How to Save Money: Tip 11) Save on the Electricity! Turn power draining appliances off when not using them!
How hard is it to turn off heavy power draining items like a thermostat or an Air conditioner or water heater if you are not using it. Second, do you need to use it all the time? Maybe you can turn it on for a while and then switch it off, and keep the doors closed properly to ensure the room remains cool or warm, however way you like it. This is an unbelievably simple way to save money
How to Save Money: Tip 12) Invest your savings.
A penny saved is a penny earned but a penny sitting idle and not invested is also a penny wasted. Sure, the level of risk you wish to take is entirely up to you and also you may always want some cash sitting in the bank as an emergency saving fund. But beyond that if you only hold on to most of your money, you are wasting it. How? The simple answer is because of Inflation! The purchasing power of the money goes down and it is no longer worth what it used to be. Aim to invest in places that at the very least offer returns that are consistently higher than the rate of inflation of your economy.
How to Save Money: Tip 13) Buy at the right time and take advantage of clearance sales.
You can buy the right thing at the wrong time. Learn to practice delayed gratification. If you want something you like, if you want it the moment it comes out, you are going to be shelling out a premium every single time and will be lavishly wasting your money. Instead wait for a few months for technology products, when prices come down or wait for a sale for other items. You get the same thing for cheap.
How to Save Money: Tip 14) Don’t waste money on Phone Calls and texting when you can use Whatsapp, Viber or Skype.
Thankfully most people are aware that they can save money this way but if you are too technologically challenged and are not aware of this, then please make the switch as soon as possible. Unless you are filthy rich and do not care about the money you save.
How to Save Money: Tip 15) Only buy Insurance Policies you need
Insurance agents will always try to sell you policies that make them money. Some of them are good, and some of them are not relevant to you. Does it make sense buying a life insurance policy if you don’t have any dependants? This is really situation dependant but buy only policies that are of relevance to you.
How to Save Money: Tip 16) If possible, buy used instead of new.
In some cases it is better to buy new instead of used, but a lot of things become a lot more cheaper whilst maintaining their quality if you buy them used. There is nothing wrong with buying a used item if it serves the same utility as a new one and works just fine. A great example of this would be cars that have been purchased by someone else, are relatively new and kept in good condition. Cars also don’t become obsolete like electronics. So you can buy such items and save a lot of money. Again this is situation dependant, there are some things that you should always buy new for example your clothes, but if you always insist on new for everything, it means you just care too much about what the society thinks.
How to Save Money: Tip 17) Make less frequent trips to the ATM. Withdraw more money in one go.
Yup, most of us end up spending a lot in ATM fees, thanks to the charges levied by banks every time you make a transaction. It is a better idea to take out more money in one go than going to the ATM more frequently.. Exceptions exist, if you are an impulse spender or if it is unsafe to carry large amounts of cash in the area where you live.
How to Save Money: Tip 18) Avoid paying for things you can do yourself, especially when when you have the time.
Yes there is something called the time value of money and if your earning potential is so high that you would make more money working on something else more important rather than getting the quick fix of someone else to do the job, by all means go for it. But if you have some free time and the job involved requires considerable expenditure that you have the ability to solve yourself (For example fixing your computer or your car) then it is better off to do it yourself. Again this is probably not a good idea if you are sacrificing much more money that could be earned doing some other job in that time.
How to Save Money: Tip 19) If you sign up for free trials on websites, don’t forget to CANCEL.
A lot of websites on the internet, are often membership based. Their business model exists around the idea of getting someone’s credit card number by “offering them a free trial” and then only making a passing mention to the fact that their card will be automatically charged if they don’t cancel their membership during the free trial period. They are not going to send you constant friendly reminders or bombard you with emails about how they are going to charge you, so you need to be careful yourself and make those cancellations in time if you don’t like their services.
How to Save Money: Tip 20) Don’t donate to so called charitable or non profit organizations without knowing how or where the money is spent.
Charity or giving back is a great thing. The problem is that most of us donate our belongings or money and get a feel good sensation, without wondering about where exactly that money went or what is being done with it. A lot of organizations pay their staff a hefty salary and technically claim to be non profits while the majority of the money does not go to the people from whom it was given. If you are donating money to an organization that is not transparent about where it uses the money, you are pretty much donating it to the executives, not the society and that is a big waste of money. Do more research about the charity you choose to give your money to and demand that they show how the money is spent. If they don’t tell you, then something is fishy.
I hope these tips on How to Save Money have been useful. A key point to note is that many of the points mentioned depend upon your financial situation. If you are rich to begin with, maybe you don’t need to buy used items but it is still a good idea not to donate to non profits that are not transparent or place your money totally in the hands of an expert. Also, reading these tips is one thing but they are only going to be useful when you practise them. So become aware and smartly control your financial destiny!
About the Author
The author of this article, Anubhav Srivastava is an author, motivational speaker and the director of Carve Your Destiny, a first of its kind inspirational documentary featuring some of the most famous personalities from diverse fields, who teach the viewers how they too can make all of their dreams come true. The movie itself has been seen on Youtube by close to 600,000 people. Anubhav has also been featured in numerous International and India Media outlets such as BBC , The Times of India, Hindustan Times, Rediff.com, Leicester Mercury and many others.
Email Anubhav Srivastava for coaching, consulting or motivational speaking queries at email@example.com. Facebook Profile: http://facebook.com/anubhav981
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