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These 10 Tips Have Helped Me Save Thousands On My Household

These 10 Tips Have Helped Me Save Thousands On My Household
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Whether you are living alone, with a roommate or a significant other, managing household costs should be a priority if you want to be able to get out of debt and live a fairly comfortable life. It’s nice to know that you have some money on your account that can help you cover emergency costs, as well as a little extra saved up for a few important luxuries like travel, home renovations and so on. However, in order to achieve a certain level of financial stability you need to make sure that you are being efficient with your monthly budget, and there are plenty of simple ways to save money without making it seem like you are punishing yourself.

What we will be looking at in this article are money-saving tips that are practical and sustainable, i.e. things that will help you out in the long run and that can become second nature. I’ve managed to drastically improve my budget using these tips – by spending less on basic everyday things, I have actually allowed my family to spend more on some of the finer things in life, and so can you.

1. Stop buying disposable razors and expensive shaving gels

Electric shaver

    I’ve always admired my old man’s ability to keep his face clean shaven every single day for decades using an old straight razor that his father left him and shaving soap. I on the other hand, have been wasting money on disposable razors and fancy-looking shaving gels until I realized just how much they were costing me.

    Yeah, they’re cheap, but you can go through a bunch of them each month. Since a straight razor takes time and skill to use and has to be maintained, a better solution for the busy modern man or woman would be a safety razor or an electrical shaver. Modern electric shavers give a good shave in a third of the time it takes to shave with safety or disposable razors, they work for women as well as men, and you only need to replace the head every few months. You can also whip up a very good shaving cream at home with a minimal investment. Switching to an electric shaver and making your own shaving cream will save you 20-30% depending on how often you shave.

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    2. Switch to a healthier diet and do some walking

    Many people are under the wrong impression that eating healthy costs more than eating junk food. For one, a healthy diet means cutting back on the calories to shed some of the extra pounds, and less food means less money spent. Second, as long as you don’t go full on organic, you’ll find that fruit and vegetables can be quite cheap and filling. You can even buy frozen vegetables in bulk and keep them in the freezer for months.

    Eggs are quite cheap as well, and you can get chicken, beef and veal relatively cheap when buying in bulk. As long as you go for a brisk walk, say 60-90 minutes each day, do a few workouts here and there, and eat healthy your health will improve and your medical bills will go down. A healthier lifestyle and smart grocery shopping can save you around 20% and save you a trip to the doctor.

    3. Work on your gardening and cooking skills

    Gardening at home

      If you want to take your healthy lifestyle savings to the next level you can grow your own fruit and veggies in the garden or even inside the house, and cook your own food instead of dinning out all the time. There are plenty of fruits and vegetables that don’t take up a lot of space, they give you free and fresh organic ingredients and some, like cherries and almonds, are extremely beautiful when they flower.

      You have access to thousands of recipes online and free cooking videos, and you can prepare meals for the next few days and keep them in plastic containers, and bring them to work. Growing your own fruit and vegetables, and cooking more can save you an extra 10% on your grocery bills.

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      4. Be on the lookout for great bargains, even if you don’t need anything right now

      Shopping for something only when you absolutely need it doesn’t leave you with a lot of options. For example, buying a big warm jacket during the winter means you’ll have to pay the full price, while you can buy one in the summer for half price. This is why you should always be on the lookout for great deals when you are running errands around town or going to get some coffee on your lunch break.

      Sometimes an exceptional opportunity presents itself, and the money you spend now saves you a lot more down the road. Depending on the discount or special offer involved, hunting for good deals can save you anywhere between 15% and 50% on a variety of items.

      5. Educate yourself about hygiene products, clothes and gadgets, so you can buy cost-effective items

      Informed customers

        To boost your savings even further you need to become a well-informed consumer. A higher price doesn’t necessarily mean better quality, and sometimes all you are paying for beyond a certain point is the privilege to become a walking billboard for a big company. With hygiene products like shampoos, tooth pastes and soaps in particular, there is no noticeable difference between reasonably priced and top of the line products, apart from packaging and marketing.

        The more you know about phones, cameras, fashion and other areas, the better you will be able to judge whether a product is worth the price tag or not. By being an informed shopper, on top of looking for bargains, you can save another 5-15% while getting the same quality goods.

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        6. Try to ditch some of those bad habits

        About 18% of American adults are smokers and over a third are obese, and the numbers aren’t quite clear on the number of people who drink regularly. Bad habits like smoking, emotional eating, excessive drinking, impulsive shopping and even excessive coffee consumption can take a big bite out of your budget. It takes a strong will and patience to make a positive lifestyle change, but it really pays off. Not only can ditching bad habits do wonders for your overall mental and physical health, which means spending less on medical bills, but it can help you cut your spending by another 10-30%.

        7. Consider switching to a wood-burning stove

        classic wood burning stove

          The heating bill is usually one of the biggest hit to everyone’s budget. When winter comes you don’t have much of a choice than to keep the house warm by any means available. However, even though some DIY insulation solutions can help you keep the place warmer, a wood-burning stove is a very cheap heating solutions and will last for decadences. Getting quality firewood will keep the fire going for a long time and isn’t expensive, but will require some work to chop up and store properly. A stove will require an initial investment, but will quickly pay for itself, as it keeps you warm winter after winter, and will save you up to 20% on your heating bill.

          8. Don’t walk around the house in a t-shirt and shorts during the winter

          You can save on your heating during the coldest months even further if you dress for the season. Most people like to feel warm and cozy, but if you want to walk around the home wearing as little clothes as possible, like you do in the summer, then you will need to heat the home up to summertime temperatures, which is not very energy efficient. A simple solution is to wear warm socks and slippers, and layered clothing, so that you can keep the temperature a bit lower and still stay warm enough. This can cut another 3-5% from your bills.

          9. Learn to limit your water usage during everyday tasks like showers and dish washing

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          Conserving water while washing dishes

            I like to imagine that I am in a dessert environment and that water is very precious and the supply limited – an idea I got from a summer vacation where we had to make do a set amount of water each week. You’d be surprised at how much you’ll save on your water bill if you start turning it off while you brush your teeth or soap up during a shower, use a low flow to quickly rinse the dishes and turning it off until you’ve applied detergent and scrubbed them off and so on. You can also get more efficient shower heads and faucets. This can save you a nice 5-8% on your bills, depending how many people you have in your household.

            10. Hit the library

            Buying books can be expensive, while joining a library costs very little. However, not a lot of people spend plenty of money on books, but they do sometimes need a quiet place to work or do some research, and while coffee shops are a good option, they tend to be pricey. Public libraries offer a calm workspace which doesn’t cost you anything, and as an added bonus, those few hours you spend at the library are a few hours during which you are not actively using electricity at home, so you save a tiny bit on your energy bill as well. Depending on how much time you spend at the library, you can save some 5-10% on coffee shop bills.

            All in all, following these simple and effective cost-cutting measures will allow you to shave a fifth or fourth off your monthly spending. This money can go towards paying off your debt, straight into an emergency fund or into a savings account.

            Featured photo credit: Kitchen via shutterstock.com

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            Ivan Dimitrijevic

            Ivan is the CEO and founder of a digital marketing company. He has years of experiences in team management, entrepreneurship and productivity.

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            Last Updated on July 20, 2021

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

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