Saving money is a good way to manage your resources and achieve your financial goals. A lot of people find it difficult to save; to them saving is a myth because they are habitual spenders. Saving money is an intentional act that anyone can learn and master. People who are good at saving money didn’t just wake up mastering the art of saving money. They learnt it.
Saving money begins with paying attention to and practicing simple healthy financial tips. Practicing these tips gradually becomes a habit and the habit gradually becomes a lifestyle. Then, you can boldly tell someone that saving money has become a lifestyle. There are no two ways about it.
Before we breakdown the 10 saving tips, Warren Buffett gives a general tip on saving money. It’s one of the best quotes on saving money and it reads, “Do not save what is left after spending, but spend what is left after saving”.
Saving does not imply reserving the crumbs but the master meal. We don’t reserve the leftovers but the budgeted part of our finance. Budget your savings from your earnings, then, plan your expenses from the balance left.
10 Tips For Saving Money Monthly
These are simple yet important tips to improve your monthly saving scheme in a challenging financial environment.
1. Create A Monthly Budget
First things first; have a budget for every money earned. For you to do this, you will first write out how much money you make monthly. This will show you what you really have. Then, you have to take stock of where your money goes.
It’s important to create a budget every month if you want to improve your saving. A budget shouldn’t be very technical, it should be something simple enough to guide your expenses and discipline your spending. Preparing a monthly budget is a very helpful tip for saving. It helps to prioritise the essentials.
In creating a monthly budget, you can use the 50/20/30 rule. It states that fifty percent of your income should go to essentials such as food, twenty percent should go to savings, while thirty goes to personal expenses.
2. Make A Shopping List And Stick To It
Think of the budget as the entire building and the shopping list as the room. From the outside, you get to see the house, but inside you see the rooms. After you have made your budget, you have to make a shopping list every time you want to shop. This tip helps cut excessive spending and is another easy way to save money.
This implies that you only shop when you have a list of needs not wants. Needs are primary priorities while wants are secondary. Primary needs mean things you cannot do without like necessities, while secondary wants are things that are not very necessary for your survival.
A shopping list is important because, without one, you are likely to buy at impulse. A shopping list guides your purchase behavior while helping you avoid wastage.
3. Pack Your Meals
The same way you keep a shopping list to avoid buying unnecessary things is the same way, you ensure to cook and pack your meals. This way, you save a lot of money off ordering food.
Money spent ordering food may seem petty but in due season you would realize how much goes on ordered food and junks. So let’s start by cutting down on the food orders and replacing them with home-cooked meals.
4. Use Public Transportation
This may sound light, but it’s a serious issue for many. A lot of people in Nigeria live above their means especially when it comes to transportation.
Trim the Uber rides and replace it with public transportation. This way, you get to save money. Sometimes, it’s okay to give yourself a planned treat but not an everyday expense practice.
5. Stop Outsourcing Your Chores
A lot of people cannot help but outsource their chores, even chores that are petty, easy, and less time-consuming. This is of great disadvantage to their pocket. It’s one of the quickest ways to sip your funds.
Have you ever imagined how much you would save if only you started doing the laundries, putting out the trash without outsourcing them? Your guess is as good as mine. Make the calculations for a month and see how much you save by doing most of your chores. So, take up your task and cut down on your outsourcing.
6. Avoid Debts
It is important for you to avoid debts because if it’s not watched, it can become a lifestyle. Debt can be dangerous to your finances. When it is absolutely necessary to take on debt, ensure to clear it as soon as possible and avoid pilling it up. Spend within your limits and keep your credit card at home.
7. Do A Price Survey Before Making Purchase
A lot of people just make purchases without comparing prices with other stores. It’s important to compare prices of items across stores and different platforms before making a buying decision.
This is money-saving as people often realize that they have been wasting money buying an overpriced product that sells at a cheaper rate in a different store. Keep track of things you buy, then shop for these items at different stores to compare prices. Settle for the store that gives the same quality at a cheaper rate.
8. Negotiate Before You Make Purchase
This is different from price surveying, it’s negotiating for a better deal when you have made the decision to buy. If your bargain is fair, the seller may consider your offer.
For instance, if you are making a bulk purchase of 10 spaghetti at N150 each, rather than pay N1500, you can negotiate a deal of N1200 since you are buying in bulk. Often, you get what you negotiate. Interestingly, sellers are willing to accept a good deal if you ask. What do you have to lose if you ask? They either accept or they don’t.
9. Avoid Unnecessary Hang Outs
Hanging out can be money consuming as one most often, cannot estimate how much a sit-out will cost. Regular hangouts with friends have a way of completely altering one’s financial plan for the month.
You can find alternatives like having friends come over to the house. You can always organize a fun pitch with friends or watch a movie, play cards, and other fun activities once or twice a month rather than hang-out at a bar or club that sells drinks three times the actual price.
10. Plan and Buy Things in Bulk
A lot of people have a contrary view but proper research will give you the insight you need. At the mention of bulk, people perceive cartoons and Jerri cans. But, there are smaller sizes of products that are packed as bulk. Take for instance the smallest bag of rice, it’s better than going for a cup or two every now and then.
To practice simple money management tips, you need discipline, as you will always have a need to meet. There are always things to buy and bills to pay, so, you need to control your choices and make the best buying decisions. Saving money will help you reserve some money for future projects or unforeseen circumstances.
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