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7 Saving Methods That Really Work For You

7 Saving Methods That Really Work For You

Gone are the days when companies used to include Social Security benefits and pension plans in their employee compensation packages. In the 21st century, neither of these exists any longer. In our lives, we all will ultimately reach a point where we either go for another career opportunity, less intense work life, or finish working for a living altogether.

We always look for the saving methods to help in creating a bright future after your working life ends, or for future use. Embracing money saving method is crucial, and knowing the right steps to take will make the process much easier.

Here are some methods of saving money; by taking some time to look through these options, you’ll be able to save more money faster.

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1. Save a certain percentage of your income

Whether you are working on a monthly budget plan or not, you might start saving right from today. The key is to pick a small percentage of your income and set it aside. Some people who choose to opt for 5 percent or even 10 percent savings from their daily income. On the other hand, some people prefer to set a standard sum each month. This does not matter, as long as you are saving money somewhere.

Many experts suggest to set at least 10 percent of the income each other. This would be an easier technique to start, because by using this saving method you can set amount of money each month.

2. Save a set dollar amount

Unlike saving a percentage of your income monthly, saving a specific dollar amount in a set time period is also a very valuable saving method. This method is used frequently because it works and can easily be automated.  Always try to aim for short-term savings goals, such as setting aside $30 a week or month rather than long term savings goals, such as $200 over a year. People save more successfully when they keep the short-term goal.

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3. Save the change

We used to keep the change in our pockets at the end of the day; we’d toss it at our cupboard or put it in a bowl or in the jar. This method of keeping the change could quickly add up to a few hundred dollars that could then be used on groceries and entertainment. Saving the change can help you with small-scale savings aims, such as a distinct purchase or unplanned expenses.

So in the future, each day when you come home from work, take out any loose change and place it in the jar and empty your pockets before going upstairs to change.

4. Participate in a savings challenge

Sometimes, we just need a pushing challenge to get into the swing of saving. There are plenty of money-saving challenges that are worth to try.

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Here are a few:

  • Saving all of your $1, $5, or $10 bills
  • Saving older bills
  • Saving $1 for each week of the year (e.g,. $1 for week one, $2 for each week or two, and so on. In one year, you’ll have accumulated $1,378.)

5. Buy in bulk whenever possible

When you need to buy non-perishable items, try to buy in bulk whenever there are such items on sale. These items could be your canned goods, cereals, rice, pasta, drinks, toothpaste, body wash, toilet paper, shampoo and other dry goods.

6. Consolidate and pay off debts

If you are in any sort of debt, make an effort to consolidate it on a lower interest rate and paying it off quickly. Money paid in interest for you is like money thrown away! There is no need to spend your hard-earned cash to make the financial institutions rich

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7. Avoid impulse buying

Make it a routine to escape impulse buying. Mostly, many things you buy do not seem all that necessary, and you save a lot if you could only wait for a day or two. Additionally, by waiting you will be able to check the prices and make a well-versed decision to buy it at the best price.

Making saving feel like a task and nobody likes tasks. Conversely, there are easy ways to save without putting any effort.

 

 

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Tayyab Babar

Tayyab is a PR/Marketing consultant. He writes about work, productivity and tech tips at Lifehack.

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Last Updated on March 4, 2019

How to Use Credit Cards While Staying Out of Debt

How to Use Credit Cards While Staying Out of Debt

Many people will suggest that the best thing to do with your credit cards during these tough economic times is to cut them up with a pair of scissors. Indeed, if you are already in huge debt, you probably should stop using them and begin a payback strategy immediately. However, if you are not currently in trouble with your credit cards, there are wise ways to use them.

I happen to really love my credit cards so I will share with you my approach to how I use mine without getting into deep financial trouble.

Ever since about 1983 when I got my first Visa card, I continue to charge as many of my purchases as possible on credit. Everything from gas, groceries and monthly payments for services like my cable and home security monitoring are charged on credit. Despite my heavy usage, I have maintained the joy of never paying any interest fees at all on any of my credit cards.

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Here are some tips on how best to use your credit cards without falling into the trap of paying those nasty double-digit interest fees.

Do Not Treat Credit Cards as Your Funding Sources

Too many people treat their credit cards as funding sources for major purchases. Do not do this if you want to stay out of trouble. I use my credit cards as convenient financial instruments so I do not have to carry around much cash. In fact, I hate carrying cash, especially coins. When you buy things on credit, the purchases are clean and you will not get annoying coins back as change.

I do not rely on my Visa, MasterCard or American Express to fund any of my purchases, large or small. This brings me to my golden rule when it comes to whether I will pull out any of my credit cards either at a retail or online store.

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I never purchase anything with my credit cards if I do not have the actual cash on hand in my bank account.

If I really cannot pay for the item or service with cash that I already have at the bank, then I simply will not make the purchase. Remember, my credit cards are not used as funding sources. They are just convenient alternatives to actual cash in my pocket.

Make Sure to Always Pay Off Balances in Full Each Month

The next very important part of my overall strategy is to make absolutely sure that I pay the balances in full each and every month no matter how large they are. This should never be a problem if the cash has been budgeted for my purchases and secured in the bank. I have always paid my full balances each month ever since my very first credit card and this is why I never pay interest charges.

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Using Credit Cards with Rewards

Most of my credit cards are of the “no annual fees” type, including one MasterCard on a separate account I keep at home as a spare in case I lose my wallet or incur any fraudulent charges. However, I do use a main Visa card which does have an annual fee because all purchases on that card reward me with airline frequent flyer points. For me, the annual fee is worth it since I do travel and I get enough points to redeem many free flights.

You have to decide for yourself if you will charge enough purchases on credit each year without paying interest charges to warrant a credit card that rewards you with airline points (or other rewards). In my case, the answer is “yes” but that might not be the case for you.

I occasionally use a MasterCard or American Express card on small purchases just to keep those accounts active. Also, I have been to the odd retailer that accepted only a certain type of credit card, so I find that having one from each major company is quite handy. Aside from my main Visa card which earns the airline points, the rest of my cards are of the “no annual fees” variety.

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So this is how I use my credit cards without getting into any financial trouble with them. This strategy is recommended only if you are not in debt, of course. In fact, it is worth keeping in mind once you’re out of debt so that you can keep your credit cards active and treat them responsibly.

What are your credit card usage strategies? Let me know in the comments — I’d love to hear what methods you use.

Featured photo credit: Artem Bali via unsplash.com

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