A penny saved is a penny earned.
Traditionally, we’ve put our loose change in a jar, and once it’s filled up, we deposit it into the bank. However, this is a really bad way to save money.
Firstly, it’s random, there are days where you have a lot of coins, and days where you don’t have any.
Secondly, this method of saving money is extremely slow.
You’ll probably save a few cents a day, on average. And without a deliberate plan to save, you might be tempted to take out some of that money for your daily use.
If you want to save money – to buy that new car, as an emergency fund, or to invest and grow your money – then you need a better strategy.
In this article, you’ll find 5 proven ways to save money. And whilst they might seem simple, their results cannot be overstated.
If you implement just some of the money-saving habits I’m about to share with you, you’ll be surprised at just how much you can achieve by using simple strategies.
1. Pay Yourself a Salary
One of the best methods to guarantee that you’ll save money is by paying yourself every month.
You should have at least 2 bank accounts for this to work. After receiving your pay check, you should transfer a portion of it to another account.
This would be the amount that you can spend. And the rest should go into your saving accounts of investments.
Now, there isn’t a magic percentage of your monthly salary that you should be saving. It all depends on your lifestyle and the pay you’re receiving.
However, be realistic about your saving goals, and don’t leave yourself with too little that you run out of money after 2 weeks.
2. Track Your Expenses
Keeping a food diary has been proven to be one of the best things you can do to lose weight.
Likewise, keeping track of all your expenses will allow you to see the areas where you’re wasting unnecessary money.
For a month, record down all your purchases. Don’t try to alter your spending habits to make it look nice.
The point is for you to be more aware about where you’re spending your money. You’ll be shocked to find out that you’re actually spending way more than you intended to on frivolous expenses.
Now, who says procrastination is all bad?
If you use it appropriately, procrastination can actually be an ally. Whenever you want to buy something (a new bag, new shoes, or even an expensive new watch), practice delayed gratification.
Make a note about the item you want to buy and wait for 2 weeks.
If after two weeks, you still want that item, then go ahead a buy it. But in 90% of the time, you’ll find that you won’t want it as much.
In our credit crazy world, everybody’s looking for instant gratification. And that’s the reason why so many of us get into credit card debts unnecessarily.
Practicing delayed gratification not only makes you a more disciplined person, it also allows you to enjoy your purchases more deeply, because you’ll only end up buying things that you truly want.
4. Give Up On Expensive Habits
If you currently smoke or drink excessively, one of the best ways you can save money is by giving up on those habits.
And you’ll thank yourself in future too. Smoking and drinking are not only extremely unhealthy, they’re also extremely expensive.
If you’re a smoker, let’s say you smoke a pack of cigarettes a day. And let’s say that a pack of cigarettes cost $12.
That’s $4,380 a year, and over $200,000 over the course of your life!
Now, imagine the returns you’ll make if you were to invest that money instead of spending it on cigarettes.
5. If You Can’t Afford It, Don’t Buy It
Incurring debt interest is one of the stupidest ways to waste money.
You’re paying money to the banks or credit card companies while getting nothing in return.
If you can’t afford it, don’t buy it. How many times did you buy something on impulse only to regret it later?
Save up for something you truly desire and it’ll feel a lot more satisfying when you eventually buy it.
And even if you do have the finances to purchase something, it’s always a good idea to practice some delayed gratification, because the anticipation of getting something usually makes the experience twice as rewarding.
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