One of the most frequent goals of many people at the beginning of each year is saving money. Surely, you have also proposed it to yourself at some point. However, it is no secret that this is not always achieved, either because of unexpected complications, emergencies or because there is no clear plan to follow.
That’s why it’s critical that you don’t stick to just one way of saving money, but broaden the spectrum. We suggest you stick to some of Good Life Loan‘s money-saving tips that best fit your lifestyle:
1. Set goals for saving money
To set a savings goal, the first thing you have to do is determine how much money you want to save and over how long a period of time. Try to set realistic amounts and terms according to your possibilities. Although it is not mandatory or totally necessary, it can help and motivate you to know what you are going to invest your savings in.
Then, it is also ideal if you are clear about how you are going to save money specifically, where the capital is going to come from. Are you going to have a new job with a higher salary? Are you going to sell some property and receive money in return?
Another detail that can make the process of saving money to reach your goal easier is to make a plan and define a short, medium and long term schedule. Write down concrete actions you can take to move towards your goal and don’t be too strict, if you need to make changes along the way, feel free to do so.
2. Make a budget
Keeping track of your expenses can also help you saving money. This will help you understand what you are spending and identify if there are any areas you can manage better. You can do monthly, weekly and even daily calculations to keep track.
Once you have a basic budget in place and know how much you really need, stick to the plan and aim not to spend more on non-essentials.
3. Saves automatically
Consider setting up your electronic banking transactions for saving money on a monthly basis. You can allocate a portion of your paycheck to one pocket to avoid having it get mixed up with the rest of your income to cover your basic needs such as food, transportation, rent, etc.
4. Reduce your debts
Pay off your outstanding debts as quickly as possible so you can use that part of your income for saving money. To make it easy, we recommend that the first thing you do each month when you receive your salary is to contribute to the installments of loans or credits that you have not completely paid off.
5. Invest wisely
Learn how to invest. If you have the possibility, research different ways and means of investing. You may even consider getting professional advice. This can become a way to earn extra income that you can set aside for your purpose of saving money.
Please note that, depending on the type of investment, this option may not be profitable immediately but in the long term.
6. Get extra income
While it’s most common to have a job that generates a steady monthly income, when you think about saving money it’s best to open up the range of possibilities. If you have some free time and enough energy to do odd jobs or take on income-generating projects, do it.
For example, many people are encouraged to do any of the following from time to time:
- Dog walking
- Child care
- Having a weekend job in a coffee shop or restaurant
7. Avoid unnecessary expenses
Make a list of your needs and wants. There are some things that, no matter how much you want them, do not contribute to your goal of saving money. Try to eliminate non-functional expenses such as new appliances or home furnishings, cell phones, clothes, leisure travel, etc. These small pleasures can wait a bit or be more occasional if saving money is truly your priority.
You can also reduce utility consumption so that bills arrive in lower amounts.
8. Make homemade plans
You don’t have to sacrifice your activities and entertainment to meet your saving money goal. You can think of other alternatives such as:
- Organizing plans at home with your friends and family
- Search for deals and discounts at movie theaters, parks or restaurants.
9. Cancel unused subscriptions and memberships
Sometimes people purchase subscriptions and memberships that they eventually stop using but forget to cancel. Although these may not be significant expenses, if they accumulate, they can make a big contribution to saving money.
Think about whether you have ever subscribed to magazines, newspapers, theaters or concert halls, entertainment centers, etc.
10. Save on taxes
Finally, knowing your tax rights and obligations in your country and province can also help you establish a financial plan to avoid overpaying. Depending on your situation and your type of employment, you may be able to receive extra benefits that will make it easier to meet your goal of saving money.