The art of saving money is much easier said than done. While most of us have an idea of what we should do in order to save money, the hard part is executing self-discipline. When rent is due, bills find their way in and spontaneous expenses arise, it feels like financial growth is nearly impossible. We find ourselves having to use money from savings accounts, and this makes every paycheck a vicious cycle.
Fortunately, there are methods in which we can manage money so that we grow instead of drown in debt. Instant gratification that stems from spending is the most challenging part of it all. Being that we are living in a day and age in which technology allows gratification to be instant, it can take a great deal of self-discipline to change our financial decision-making. As stated by CNBC, 61% of adults claim that they do not have enough money to financially secure themselves if an emergency were to arise. This is a scary thing to think about being that emergencies are always happening, and relying on a loan for these types of situations isn’t the most lucrative way to save money.
Tips for Better Spending
1. Make lists to organize the day, week, month or year so that time and resources are invested wisely. Things get rough and life doesn’t always go as planned but we have to try, more than we choose not to try and making lists is a great way to stay on track.
2. Cut out unnecessary habits. We do not need to have the $5 iced caramel macchiato coffee drink every morning. Making coffee at home could save up to $100 a month – that’s $1200 a year.
3. In any activity looking for the “better deal”, such as, a simple auto insurance quotes comparison, is essential. This is the best way to obtain the most while spending less.
4. Take advantage of customer rewards programs. Some companies offer “free money” that can be earned after having spent a given amount. The majority of companies want to reward their customers and motivate them to keep coming back.
5. Pay you first. By taking a chunk of money out of every paycheck and “paying yourself first” it’s easier to remember why saving is so important.
6. Cook more and eat out less. Eating out regularly is a huge expense, and for those who don’t cook, it’s an even bigger one. Learn how to grocery shop and cook meals which can save hundreds and hundreds of dollars every month.
7. Perceive experiences as wealth instead of material things. Having things can make us feel better in the moment, but shopping incessantly and racking up credit cards is not resourceful. By seeing experiences as wealth it is easier to avoid unnecessary spending.
8. Appreciate a good “staycation” at home, instead of the annual “vacation.” Deposit that money into a savings account instead.
9. Use the right banking institution. There are now companies that allow money to be deposited into an account, which cannot be retrieved until a given period of time has passed. This is referred to as a term deposit and they are often used for the purpose of accruing returns. That being said, the money is being saved and invested wisely at the same time.
The art of saving is truly learning how to be resourceful. Money, just like anything else, is the product of our own habits. Once this skillset is mastered and spending judiciously becomes a habit, we will then begin to see how easily money can be spent and saved. It is interesting that once self-discipline is established in producing and consuming, so is financial freedom.
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