Are you always wondering where your money goes? Do you end up spending your entire paycheque within the first few weeks? A lack of financial literacy from an early age can lead to irresponsible money management in later years of life.
Instead of worrying about making major lifestyle changes, you should consider starting slow and improving your spending habits. In this post, we’re sharing easy ways to save money in your everyday life.
Lower Major Expenses
Rent and transportation are probably two of the most expensive monthly expenses. If you are living in a two-bedroom apartment by yourself, consider subletting one room to make extra cash every month. On the other hand, you can also think about moving to an economical neighbourhood.
As far as transportation is concerned, fuel prices are continuously rising. Instead of driving to work, look for alternative modes of transportation. If your workplace is close by, you can bike or walk to work. You can also use public transportation to save more.
Track Your Spending
Are you usually struggling to make your paycheque last through the month? It’s possible that you are spending too much without realising it. We urge you to start tracking your spending. You can keep a journal or use an app to track your everyday expenses. Make sure you record every expense, no matter how small.
Create a Budget
Creating a budget is the next step to gaining better control over your finances. Come up with a realistic monthly budget and stick to it. List down your monthly income, expenses, and saving goals. Now accordingly create a budget that will allow you to save a defined amount every month.
Look At Unapparent Expenses
There are certain expenses that often slip through the cracks. For example, when was the last time you looked at your energy bills? If you’re paying high energy bills, it’s time to shop for a better energy plan. Consider AGL electricity plans, which are competitively priced.
Impulse purchases can leave a significant dent in your monthly savings. Whether you have a weak spot for gadgets or clothing, you need to address this unhealthy spending habit. An easy way to restrain impulse purchases is delayed gratification. Instead of immediately buying a product, allow yourself a few days to think about it. This will give you space to determine if the purchase is necessary or not.
Quit Expensive Habits
Drinking, smoking, and retail therapy are just a few habits that are equivalent to throwing money down the drain. If you are serious about growing your savings, it’s crucial to quit such habits.
Monitor Emotional Spending
Do you tend to ‘treat’ yourself whenever you’re feeling low? While there is no harm in enjoying your hard-earned money, avoid letting emotional spending drain your savings. Instead, look for healthier (and cheaper) coping mechanisms!
Don’t Fall for Trends
From fashion to home decor, trends rule several consumer markets. And keeping up with these trends can adversely impact your savings. Remind yourself that trends are short-lived! We urge you to invest in products that are durable and timeless.
Optimise Shopping Habits
While you can avoid spending on takeout or clothes, certain expenses such as groceries are unavoidable. That being said, there are ways you can save more when shopping for everyday items. For example, start buying groceries in bulk. Moreover, shop for second-hand furniture and other items to enjoy greater savings.
Sometimes the hardest thing about saving money is getting started. Don’t beat yourself up if you aren’t able to reach your monthly saving goal on your first attempt! Incorporate the aforementioned tips and stay consistent and eventually your savings will grow.