One of the common resolutions you hear over the New Year is that people will save more money this 2020. But as always, doing that is harder than just saying it. To help you better fulfill this, here are some handy money-saving tips you can follow this year.
Money-saving tip no. 1: Study your budget
While you probably have a budget in place, you might still find it not helping your ipon goals. Before writing a new one for this year, study your old one thoroughly. Find out which items you’ve met and which ones you didn’t. From there, decide which of the strategies you want to continue employing and plan how they will mesh with new budgeting strategies.
Taking advantage of personal finance software and budgeting apps will also help you a lot. The former lets you manage your various bank accounts, credit cards, and other financial transactions. You can also input your income and expenditures, and project your potential financial situation in the next few months.
Budgeting apps, on the other hand, focus on the more specific details of your budget. For instance, certain apps will show you how much disposable income you have for the current pay cycle. Others will keep track of your day-to-day spending and alert you of pending payments. All of these happens in real-time, helping you make better decisions. By combining the two, you can better plan out your budget and anticipate potential issues.
Money-saving tip no. 2: Save your extra money automatically
Saving extra money is one of the most common tips you will hear but is also hard to implement. Often, you will defer dropping your extra money to your savings account for later. But this can also lead you to spend it on something else.
To solve this problem, you can have this extra money automatically set aside in a separate savings account. Some banking apps lets you send the change from a purchase into that account. You can also set a certain amount to be regularly deposited from your main account to the savings account.
But don’t overlook the importance of saving manually. Place a small coin box or container beside your bed or at the doorway where you can drop any loose change. You can also do something similar to above and immediately put any change from your physical purchases into your savings container.
Money-saving tips no. 3: Try kakeibo
Another budget making and money-saving strategy to try out is kakeibo. This is the Japanese art of maintaining a home ledger for your finances. It focuses on you becoming more conscious about your spending habits and helps you achieve your money-saving goals.
To get started, get a notebook and write down the fixed incomes and expenses you have for the month. The difference between the two will be the amount of money you have available for the month. From there, decide on the amount you want to save and set it aside
A crucial aspect of kakeibo is keeping a close track of your spendings. Here, you need to classify each into a specific category, such as:
- Survival: Expenses you need every day, such as food, medicine, and transportation.
- Optional: Items that you spend for every once in a while like restaurant dinners, or shopping
- Cultural: Things like books, movies, or magazines that you purchase for entertainment.
- Extra: Unexpected expenses that show up, like repairs, gifts, and new home items.
To reach your savings goals, you need to decide how to handle each category. For instance, you can make a promise to cut down on some of the optional expenses like dining out. At the end of the month, review your actual expenses versus the initial budget you have to see how well you fared.
Money-saving tip no. 4: Control your online purchases
The advent of apps like Lazada and Shoppee has a considerable impact on your spending habits. Now, you just click and add to cart right at your home. But this also leaves you prone to the temptation of buying too much.
A handy trick to control your impulse bus through shopping apps is the 24-hour rule. What you do is wait for 24 hours before moving the items on your digital cart to checkout. Chances are, you will realize later that you don’t need to particular items anymore. You also want to space your purchases on these apps by at least a week.
Additionally, you need toi be careful when choosing payment options. Going for Caqsh On Deman payments will more preferrable since you get to spend only the money you have on hand and not tap into your accounts. But remember to time the delivery of your purchases so that you do have the money in your pockets when they arrive.
Fulfill your money-saving resolutions by following these tips
Saving money is not just a one-off resolution that you have to fulfill this 2020. By completing your savings goals, you will become more efficient in handling your finances. Follow these money-saving tips and be ready for a more prosperous you in the next few months.