Don’t go broke trying to look rich!

It is a fast-paced era where money is a big problem! Do you feel like you are always trying to save money but somehow you can’t? Well, saving money is an essential skill. You must have heard a million times from your people that money does not grow on trees. Some might add though that it comes from paper and that comes from trees. But that is not the point. Where your money comes from and where it is going is an important question that you should ask yourself. If you have begun to question the inflow and outflow of your money, then I welcome you to a very special club – it is called the smart squad! Well, of course, the people who save money and keep a check on their cash leakage are smart. They are saving up for rainy days or their long-term goals. Both are healthy choices.

Reason Why You Should Save Money

Being broke is not the kind of phrase anyone wants to see in their life. The inevitable uncertainty of life requires that we prepare a contingency plan. For example, previous years of COVID lockdown put things into perspective. Many people were furloughed. The sudden cut of jobs and embargo on transportation created an unprecedented crisis in everyday life. Those who had financial savings made it through the lockdown without having difficulty paying for rent/ utilities/ groceries etc. Life is full of such ripples. A smart choice is to control the factors we can present so that any upcoming challenge is surmountable with some sense of ease. Though it may seem hard but saving money could lead you to a lifelong journey of smart choices that induce quality in life. It creates a backup for you to rely on from the efforts you have made every day! Here are some perks of saving money:

• Financial stability and independence
• Ability to achieve life goals such as own residence
• Have you set your eyes on a Ferrari? Save!
• Have enough to invest and multiply your earnings etc.

How Can I Save Money?

We have some sizzling and smart ideas to help you to start saving money now!

1-    Note Everything Down!

Bookkeeping may be an orthodox method of recording the expanses for a business, but it sure comes in handy even today for people like you and me who are trying to discover where to make cuts! The most important step to start saving money is to record every cha-ching! That means recording all your outflows. This way you’d be able to know how much of your monthly expense comes in the need category and how much is spent otherwise. This habit would help you to identify your weak spots such as impulsive purchases per month, takeaways per month, buying and hoarding habits, etc. You’d be surprised to know how much you have made yourself spoiled! Time to decrease treat yourself!

2-    Create a Budget

The budget is not just a federal headache. It’s yours too! Once the monthly needs and expenses associated with those needs are identified, you know what you need to live through the month. Other expenses are either wants or extras. These are the categories from which you can make cuts. You can create ratios of your monthly income depending upon what your monthly expenses are, how much you need for leisure, and how much you can save. Give yourself a target to save that much per month and commit to it. Remember when in Friends Jack told Monica that 5% of her income should go to saving. Well, it is 2022 now. Give yourself such an ultimatum that 25% or 35% (for example) of your income should go to saving. There are several ways to create a budget. You can keep a journal, save the mini financial statements you receive with every atm withdrawal, or go digital and have an app to record your expenses and create a budget.

3-    Treat Yourself But Smartly!

“Money looks better in the bank account than on your feet.” — Sophia Amoruso.

If you are feeling down or you just accomplished a goal and want to go a bit crazy with your money, immediately ordering a Birkin’s bag is not a very smart choice. Especially if you have set a vision that helps you to stay motivated to make smart choices with the money. Feel like Kim Kardashian some other day but today, let us keep it to something affordable that won’t set you off track from your saving mission!

Don’t get me wrong! There is no harm in treating yourself. You should treat yourself as being so amazing. The point is not to get so carried away that you lose focus on your goal of saving money for the long-term goals.

4-    Still Not There? Make Cuts!

If you have not been able to save the percentage of the money you aspire to save, then it is time to revisit your records to know where to make cuts. There is always an elephant expense that looks like a need, but it isn’t. Does that tap dance class help you with your career goal? Do you need all those subscriptions which you do not even use? Think. Assess. Then erase that expense from the upcoming months!

Budgeting and recording expenses help to make cuts in spending. The above points help to tame your spending habit and create a poise when it comes to handling money. Other smart cuts may be limited on spending sales tax on restaurant food and going organic and healthy, paying your credit card on time, minimizing your energy consumption so that you can control your utility bills, taking a walk instead of uber, finding a cheaper place to live in your house rent is hefty, etc.

5-    Alternates

There are affordable alternatives in the world. The good thing about the internet is that it has made consumers powerful. You can search for what you need, and you’d find tons of options at the prices that suit your budget. There are sales at different times of the year which can help you save money on your purchases. You can buy your favorite brand of shoes given they do not cost you your future! Think smartly. There are tons of social media pages guiding people about best alternates. Engage on such platforms to find budget-friendly options and affordable places.

6-    Prioritize

The worst part about being an adult is having to think about all the different areas of life that need you, your efforts, and your energy. Even your money! Therefore, a wise person set priorities not only for his time but also for his money. Ask yourself questions like, ‘’what is my financial goal?’’, ‘’What does financial independence means for me?’’, ‘’what are my financial priorities?’’. Everyone has different financial priorities. For some, it might be paying off their student loan or mortgage or housing loan! Figure out what are yours. What is your current financial position and based on that what is your financial priority? Let us suppose you have loans to pay, maybe you can put some extra hours at work to get overtime or get a part-time/ weekend job to earn a few bucks. The quicker you decide your priorities the better you’d be able to plan how to save your money!

7-    Do Not Spend Your Salary Before It Is Deposited In Your Account!

Scrolling on the Instagram shop or other e-commerce merchandise is all fun and games until you break, and press buy now. Online shopping is a great convenience, but it may also be a great money drain. We have all been there when we have converted online window shopping to a cart ready for check out! We might order something unnecessary in the future dollars that are to come thanks to cash on delivery. Restrict yourself from making such expenses.

A BONUS TIP to save money is to subscribe to auto transfer. Create a separate savings account and have your monthly savings automatically transferred to that account as soon as the salary is deposited in your account. This way you’d be saving as well as spending within your dedicated monthly budget.

CONCLUSION

Saving money is an essential life skill just like cooking or cleaning or driving. As a responsible person, you should not be whimsical with your money. The world of today offers attractive options to spend money on such as eateries, clothing, cosmetics, etc. Everything you see does not need to belong in your home. Your home might turn into a stack of unnecessary things while your account turns dry. That is not safe for your future self. Through simple tips, you can become a more responsible being by saving your money. When you smartly track your inflows and outflows, you’d be able to create a healthy balance and a secure future. Good luck on your journey of responsible adulthood!