Save money and money will save you! 

In the free market economy, avenues for money drainage are plenty. Being smart with your money at this point should be considered a life skill just like swimming, cooking, or cleaning. This is because with limited resources, increasing hyperinflation, a rise of e-commerce, etc. we are surrounded by many traps for our money to be blocked here and there.

Would you rather be financially broke with fancy stuff or lead a stable life with some backup for bad times? Would you rather spend your earnings mindlessly or save for a quality lifestyle? The choices are yours! Being smart with your money is your commitment to adopting lifestyle choices that are yielding in the longer run.

Below are some useful tips to be smart with your money.

1. Be strategic 
2. Make cuts 
3. Save the change 
4. Research before spending
5. Go advance, go digital 
6. Get a partner 
7. Be future-oriented 

1- Be Strategic

Once you have decided that you are going to make financially smart decisions, you need to put your thinking caps on. We prefer that the caps you put on are as smart as the sorting hat in the Harry Potter series because we want you to sort your expenses. Go retro and have an expense journal or go modern and make an expense sheet on Excel or Google Docs, it’s your call. But sort your monthly expenses. The areas where you need to buy a money booster shot every month like rent, mortgage, bills, etc. This way you’d be able to know the areas where your salary chunks are being taken.

2-  Make Cuts

While rent, mortgages, and similar expenses have fixed due amount that is paid monthly, you need to find areas where you can make cuts. For example, electricity bills. Replaces your power-consuming lights with power saver LEDs. It is a one-time investment that you can undergo one by one to not put a big hole in your wallet. Another suggestion is to limit your carefree use with smart actions like making sure all switches are off once you leave your house. In the daytime, make use of sunlight rather than tube lights and bulbs because sunlight is healthy and cost-effective. Make sure you are turning off sockets once your devices are charged, and lastly you have kitchen appliances off once you have used them. With simple changes in your lifestyle, you’d be able to see a difference in your electricity bill.

3-  Save The Change

We are often careless with change. Well, every penny counts. When you’re trying to be smart with your money you should know the amount of effort you put to earn each dollar therefore, your change is equally important. We suggest keeping a change box where you put your change. Change folders are being sold by new entrepreneurs on Instagram to satisfy your inner OCD and sort the change. When you’d start saving the change at the end of that year, you’d have collected money in dollar value which is a good treat for yourself. And a good way for feeling accomplished in your resolution is to be smart with your money. So, think about all the things you can do and start saving your change money!

4-  Research Before Spending

Purchase decisions are not easy, but the good news is that thanks to the internet you have information readily available. When you’re trying to be smart with your money-  Google is your ally. You’re encouraged in this tip to be a smart customer for anything and everything. That is, weigh your option before spending your money. Do not be like that meme where Leonardo DiCaprio is wasting dollars from the ship into the sea (pun intended).

From the need to buy a smart tv, to upgrading your phone, getting new furniture, or even buying new shoes, just google your options. Through research, you’d have a variety of products within your pricing range and expected quality and you’d be able to choose the best product at an affordable price. Maybe you’re lucky and there’s a promotional offer on the item you intend to purchase, and you didn’t know. Google and make your research so that the vendor won’t rip you off. Also, you can set a budget in your mind about what you’re willing to spend. This is also a helpful habit to control impulsive buying and free yourself from this reckless spending pattern.

5-  Go Advance, Go Digital

Well, the most secure way to ensure your financial stability and security is via digital means. Banks provide provisions to land your money automatically into your investment account/ savings account or to other accounts where your payment is due. You can set the dates and make payments automatically so that you are always on time while making payments as well as more financially relaxed. This means that you won’t waste time making payments manually, cutting your money in withdrawal charges, and making the most out of the IBFT charges you already pay. Furthermore, there are banking options that allow you to sort your money easily into expenses and savings. Each month you’d be able to have a clear picture of the money at hand which should be divided between needs and wants. This way you’d be able to be smarter with your money.

6-  Get A Partner

Motivation is the driving force that compels us to be consistent with the changes we’re trying to adopt or adapt. A presence of a co-conspirer might just be the motivational boost you need to be consistent in your endeavor to be smart with your money. If you’re married, then you should make financial decisions mutually.  You along with your partner could mutually start this journey. If you are starting by yourself, you can make your friends see the benefits of having financial pragmatism and create a legacy of financially smart life choices. Inspire and hustle, you what I am saying? There are a couple of benefits of having a partner in this journey.

Another meaning of getting a partner is to get yourself a roommate to share expenses in case you are renting a space and you have an extra room. It would help you to establish financial security especially if you’re struggling. Firstly, with a partner, you’d be able to make smart choices and make your shopping spree a fun activity while being financially sound. Secondly, you’ll be able to motivate each other. Thirdly, if you’re on a budget or struggling it’s good to know that you’re not alone in the chaos.

7-  Be Future-Oriented

You should be future-oriented when you’re trying to be smart with your money. This means that you must think about where you want to be in five years or ten years when it comes to your finances. You would not have the same energy, youth, or health in ten years, nor you’d prefer to be working or struggling all your life. Make a goal to release your financial burdens by the specific age and start planning for it. You can invest your money accordingly so that you can create a second source of earning within a given span. For such an investment you need to save, and you’d be able to save when you start being smart with your money.

 Bonus Tip: Build Your Financial Knowledge

Reading makes you smart. You become more aware and more up-to-date. Reading is not only a great hobby but also a life essential because it is yielding in so many ways. Start reading financial content. Just like this one. Our website is making you ready for your economic future! Read more and read a lot. It is free leisure and productive activity. When you build your knowledge about finances, you’d be able to make smart financial choices, you’d know where and when to invest. You’d understand the impact of global economics on your inflows and outflows. And you’d be able to adjust to the rise in inflation accordingly. We cannot highlight enough the perks of reading about finance!

CONCLUSION

The money you make is a symbol of the value you create. The above tips are the tip of the iceberg when it comes to being smart with your money. Once you start making smart choices, you’d discover your path regarding financially smart choices and you’d enjoy the process. The sense of security that comes from savings and investment is irrevocable and you owe it to yourself after working so hard that you do not let all the money, and all that effort go to complete waste.

We have collected a set of the most applicable, easy-to-do, and easy-to-commit ways of being financially smart. Through simple changes in your lifestyle, you can make an impact on your financial situation within a year. You’d be able to feel more in control about your inflows and outflows and trek the Earth like a responsible adult. You’d be able to sustain a living in case of any adverse global occurrence such as the 2020 pandemic and furloughing crisis. Maybe you’d save enough to afford a well-deserved vacation trip you keep creating on Pinterest boards. So, what do you think? Are you ready to be financially smart?