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5 Tips To Save More Money

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5 Tips To Save More Money

Money is something we need to survive in this world. Having money doesn’t necessarily equate to being rich, but it can be a part of the journey. Due to these volatile economic times and rising inflation rates, the cost of living has skyrocketed and has made survival more difficult than ever before. We cannot sustain our lives while making minimum wage, so other avenues to making money must always be implanted in your mind. Regardless of the income you make, there are always ways to save if finances are managed wisely. Saving is a matter of making calculations, planning, and preparing.

1. Set Reasonable Limits

Impulse buying has plagued our spending habits for years. If you know you’re about to get paid, don’t spend the money before you receive it. Calculate the percentages of what needs to go towards living expenses and make sure everything is paid on time. Once you begin to get behind on payments, life can become difficult to navigate, and you can feel like you’re on a downward slope. Combat these problems by preventing them from happening with mindful spending.

We don’t need a lot to be happy in this life. The necessities are food, clothing, transportation costs (public transit, automobile maintenance, gas), and shelter. Once those things are paid for, everything else is a luxury that too many of us take for granted every day. And being able to have those luxuries is a blessing, but don’t use them as an excuse to splurge.

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Ask yourself this question before spending money on items you want but don’t need: will my future self be happy with this purchase that I’m about to make? If the initial answer is no, you are doing yourself a favor and decreasing stress levels and anxiety by refusing to put yourself in a turbulent situation. Have a purpose for every dollar you make. Stop falling into the trap of buying useless products due to propaganda and advertising. Show some constraint and your life will start changing.

2. Invest In Yourself

Whenever you get a check, a certain percentage of that check should be treated like it’s radioactive. This money shouldn’t be touched unless there are exigent circumstances that need to be ameliorated.

Deposit the money in a high-interest savings account, a TFSA (tax-free savings account), or invest it in an RESP (registered education savings plan) if you plan to attend an academic institution in the future — or if you might have children that will. Another good investment is an RSP (retirement savings plan), which ensures money is safely secured for your future. Both these options of an RESP and RSP are long-term investments. They enable stability and help you build a stronger financial portfolio.

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Having a social life is necessary to maintain your health and wellbeing. Common activities are going to various events, dining out, and seeing movies. All of these variables can leave a hole in your pocket if they’re frequented too much. Your friends will understand if you sit out on certain social functions. And if they don’t understand, then they aren’t your friends and you should extricate yourself from them immediately. Use this time that you would normally spend with your friends to educate yourself and discover new things. You may end up having a revelation that causes you to invest money and start making more of it.

The greatest ideas are created by the imagination in times of reflection and solitude. Be a little bit more selfish and really appreciate your alone time, because there will be moments in your life that it won’t be apparent. Taking out this time for yourself really allows you to evaluate your life and prevents you from spending money on products you don’t need.

Don’t forget that health is your biggest investment, so don’t cut back on spending that pertains to your health. You won’t be able to enjoy the beauty of life without maintaining good health, so be adamant and diligent when the expenditure pertains to your health. Cutting corners in spending will only hurt you in the long term. Short-term fixes tend to exacerbate the problems that were already present.

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3. Develop A Fiancial Plan

Having professional help is definitely a bonus, but you don’t necessarily need expert advice to manage your money effectively. Start by tracking your spending habits. Write down daily expenses and look back on what’s costing you the most money. If it isn’t health related, food, clothing, or shelter, then you are splurging on something that must be stopped. These habits can be very difficult to break, but you must remind yourself that saving money is more important than giving in to your foolish desires. Everyone makes mistakes when it comes to spending money, the key is to minimize those mistakes by setting objectives and being conscious.

Save your receipts so you can write down your spending patterns for each day of the week. Figure out what needs to be changed and what can remain. There are always methods to improve our spending habits.

4. Treat Yourself

You deserve to reward yourself after successfully launching a new financial plan. Either buy small items that add up to something large or one luxury item that you desire. Having a purpose for every dollar is important, but living life is a more satisfying alternative. Knowing your financial standpoint will allow you to track your spending on treating yourself, so you won’t be coaxed into going overboard.

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5. Smart Individuals Make Money Work For Them

Yes, you must have some type of occupation to accumulate an income. But that doesn’t mean you’re subjected to what you do for money. This is only the inception to expand your horizons to greater things. The reason why affluent people maintain their wealth is due to their meticulously crafted management.

They don’t spend nearly as much time trying to make money as the average person would do. They devote the majority of their time to figuring out, learning, and discovering how to manage their money better so it works for them. They are focused on ROI (return of investment) instead of fixating their minds on how much money they can make. It’s all about what you decide to put in that determines the value of the return you receive. It’s these little, minute details that separate the wealthy from the poor. They have designed a methodology that works for them instead of against. Time is money, but if the clock is working against you, then how you expect to turn a profit? Making money work for you is all about putting time on your side. Making more than you spend is the key to strategically saving.

Featured photo credit: VIKTOR HANACEK via picjumbo.com

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Last Updated on July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

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Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

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Reference

[1] Hartford Gold Group: IRA Retirement Accounts

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