Need money saving tips to make your dreams happen? Fun fact: You don’t make dreams happen by spending; you get there by learning how to manage your income. It’s a tough job, but it’s all about habit-forming; so here are some great money saving tips to help you manage your income better and get to where you want to be in life.
Money Saving Tips | Spending Your Income Wisely
1. Figure Out a Budget
A budget is the most basic money saving tip in this list. To start a budget, figure out what your take home monthly income is after you’ve taken out the money you need to cover fixed and unavoidable expenses like utilities, rent, mortgage, healthcare, loan payments and the likes. Next, figure out how much you want to save and how much you need day to day. Your day to day expenses include food, gas money, medicines etc. Ideally, you take the amount you want to save and the rest you’d need to make do with for your daily expenses.
Having a realistic goal is key. Sure it’s great to say you’d put half of your take home income in your savings account. Bravo to you if you’re able to pull it off! If we’re being real though, this is not realistic at all and you’d be setting yourself up for failure because you’ve forced a budget on yourself that you just can’t stick to.
2. Track Your Spending
It’s easy to lose ourselves in the little purchases. A coffee here, a boxed Blu-Ray set there, perhaps a few new mods to your car. What we don’t notice is how fast these things pile up, so it helps to track your spending. Keep a notebook (or an app) handy and list down even the most trivial of your purchases; as long as you take money out of your wallet, you list it down.
Tracking your spending is a great way to realize a lot about your spending habits. In time, you’ll see for yourself how you can start buying better and saving more.
3. Live Frugally
People can get used to certain lifestyles, sometimes living like one-day millionaires, where a paycheck is 50% gone the moment you get it. It helps to take a step back and ask yourself: how can I get this cheaper? Living a frugal lifestyle can be hard, but it’s all in the dedication. Before purchasing anything, ask these questions:
- Do I need this, or want this?
- Is there a way I can do this myself?
These questions can apply to many of your purchases, so keep them in mind. If you must buy, get it in bulk or buy only quality products so they won’t break every three months or so.
4. Do Things Yourself
There’s a joy in doing things yourself. Something you made with your own hands can feel significantly better than buying them in a store. For example, learning how to cook can save you hundreds of dollars in restaurant bills monthly. Instead of going out to drink in a bar where everything is overpriced, maybe you can take the lady out on a camping trip instead.
Doing things yourself is often a lot cheaper and will save you a lot of money in the long run.
5. Put a Bit Away as Much as You Can
Let’s say you’ve set up your budget best you can, to the point where you’ve got even a daily budget. For example, you have $50 a day to spend on gas and the like and have $20 left over. Put the remainder in your savings accounts as soon as you can.
Saving up a small amount like this little by little every day adds up, and can net you around $7,300 in savings every year! That’s enough money to treat yourself like a king in a Southeast Asian country, for example (which you should totally do, with all the money you’re saving!)
6. Give Yourself Goals, and Reward Yourself for Them
It’s always a good idea to work towards something. Giving yourself saving goals, for example, is one of the better money saving tips we can give you. Make a target of what you can save every month and every year.
Let’s say you have a monthly target of $1,000 in savings, and a grand total of $12,000 per year, for example. If you hit your monthly goal, take $100 out and treat yourself – a nice dinner out with a lovely girl, a quiet fishing trip, or something nice for your hobby. If it’s the yearly goal, take $2,000 out and treat yourself to a plane ticket to a summery island for the winter.
It’s all about rewarding yourself for your good work, which makes you want to do it all over again!
7. Play the “Poor Game”
This isn’t exactly a money saving tip more than it is a little game you can play, with potentially huge positive effects on your savings. The “poor game” is basically this: see how many days you can go without spending anything. If that seems impossible, get out of the day with 80% of your daily budget intact.
This is a good practice to do, cause it teaches you to temper yourself (and your wallet) which can lead you to spend less in the long run. Try it out!
Here’s a quick little video on how you can save money in 7 ways. Follow these to break free:
There are a thousand and one ways to manage your income, but these money saving tips can help set you up if you haven’t done this before. Try them out and watch your savings grow – in time, you’ll be able to afford that shiny new late-model luxury car; as long as your savings are at their best state, of course. Good luck, men!
Tell us in the comments if you’ve tried any of these tips before and how they worked for you!
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