Have you ever wondered how come people can have similar incomes, the same accommodation and family situations, and yet one group appears to have more money than the other? Whatsmore, they don’t seem to be taking any drastic measures, but are instead spending money on what they prefer without any restraints.
As you shall soon see, there is no magic here; only a few money-management tricks which are easy to master and to be included in your routine. Here is what you need to do if you wish to have more money to spend and to save.
Talk to the bank(s)
Let’s first deal with those who we can’t live without – the banks. You’re probably a creature of habit like most people, but if there is no special reason why you are sticking to your current bank, how about changing it? Plenty of banks out there are offering all kinds of perks and benefits for their new clients, and more often than not, these come in the form of free cash. Do some research, and say goodbye to your present bank unless they make a reasonable enough offer to retain you.
In case you have some debts on your credit cards and leaving the bank is not an option at the moment, dedicate your time and money to getting rid of debt(s). Here is how to do it:
- Make a sound plan – see how much exactly you owe on your credit cards, and decide to pay the debt with the highest interest rate first.
- Use the avalanche method – there are a few extra dollars every month that can be invested in something, though they don’t seem like much at first. When you have covered all your monthly instalments, take those extra bucks and add them to the sum meant for paying off the smallest debt. One by one and your debts will eventually disappear.
- Call the bank – and ask for a lower interest rate. Perhaps you haven’t thought about it, but it’s perfectly possible to negotiate a lower interest rate due to your regular payments, a new profitable job, or maybe a better offer by their competition. It doesn’t hurt to ask, does it?
Paradoxically, one of the main reasons for cutting down your shopping costs is so that you could have more money to spend on shopping. However, let’s spend it wisely.
- First of all, ditch emotional and impulse shopping. Both types make you end up with unnecessary items and a potentially large credit card bill. Find another outlet for your emotions – the one that doesn’t involve reckless spending. Go for a simple walk (outside the shopping centre), or spend time with friends nowhere near shops. Take full control of your shopping addiction.
- In addition, make a list prior to going grocery shopping. How many times has it happened to you that you went out to buy three things, and you came back home with two full bags? Don’t be too hard on yourself – shops and supermarkets are doing their best to mess with our heads and persuade us we’ll be more satisfied after shopping, plus they use all sorts of techniques, from strategically placed products to using special smells and playing relaxing music. Therefore, make a list, and stick to it!
- You can also collect all kinds of coupons if you open a few email addresses and use them for this purpose.
There are plenty of options on how to save money on travelling to work, and here are a few:
- Carpooling – it’s cheaper, and it’s more fun, especially during a rush hour.
- Moving closer to work – if you know you’ll be working in the same company for quite some time, make your life easier by moving house.
- Cycling – it’s healthier and environmentally friendly. Perhaps you won’t be needing the gym in this way, too (another dollar saved).
- Buy another car – take a good look at your gas-guzzling ride. Why don’t you buy a more economical model? Also, with so many reliable second-hand cars on offer, you needn’t even spend too much. Vehicle preferences differ depending on gender and age, but it’s a fact that the majority would rather buy a second-hand car than a new one.
Energy saving tips
Perhaps your monthly utility bill won’t seem that much lower, but if you multiply the sum by 12, you’ll see where you’ll be getting that extra cash for your holiday from.
- Pull the plug on all the energy vampires – how many chargers are left unattended? All of them, aren’t they?
- Smart thermostat – these are incredibly useful since you don’t have to leave the heating on so as to have a warm room when you get back from work. Simply use your mobile application to turn on the heating an hour or two before you head back home. Similarly, you can lower the temperature by one or two degrees. Your body won’t feel the difference, but your bills will clearly show it.
- LED lights – on average, buying just 5 of these can save you up to $45 a year. They are a long-term investment, but they are definitely worth it. Moreover, start switching off lights in the rooms and halls you aren’t using at the moment.
- Caulking and weather stripping – simple DIY projects which can save up to 20% of your energy. Just check the amount of 20% off your monthly bill, and you’ll see exactly how much you will be able to save. Quite a hefty sum, isn’t it?
As you can see, there is a myriad of ways how you can save money not just every month, but every day. Start applying these tips right now, and you’ll end up with more money on your hands than you even deemed possible. Just remember to spend it wisely, too.