subject: 7 Tips In Saving Money At Home [print this page] Almost everyone tries to save money to last them through an emergency, such as becoming unemployed, getting seriously ill or having a bad accident. The sad truth is that most people don't have such reserves of funds and when disaster strikes, it is very tough on everyone in the family, not just because of changes in income, but often because of the extra associated costs, like medical bills.
Sometimes people overlook the small ways to save and give up hope by trying to save unrealistic amounts in a short space of time. It would be very nice to save several thousand dollars in a couple of months, but the truth is that most people will not be able to do that. However, saving a few thousand over a longer period, such as a year, is quite possible once you acquire the habit of saving small amounts regularly.
In addition to actually putting money into a savings account, don't forget that spending or using less is also saving. Although you are not adding to the amount you have, you are using less, so have more available for other things you need to buy. Cutting back is mostly about forming new spending habits in your day to day life. Start with a few changes; do them for 21 days as this is the accepted length of time it is believed to take to make a new action become a habit.
Don't think it is too late to start saving because you are too far in debt, don't have enough income, are too old or too young. Saving and reducing spending can make a difference to everyone and is an especially valuable gift to pass on to children.
7 Specific Strategies
1. Start by making a list of all your expenses, sorting them into weekly, fortnightly or monthly, to match up with the time frame when you receive your income. Make sure you include items you pay less frequently and calculate pro-rata how much belongs in each pay period. It is fairly easy to remember to include things like food, electricity, gas, car expenses, but you also need to include things like eating out, drinks or buying treats for the kids.
Compare your expenses list with your income, work out a rough estimate of how much you can realistically save and then get into the habit of putting that amount away first off when you get paid!! Yes, first, not last. A suggested amount to save is 10% of your take home wages or net income, but you must choose a realistic figure for your situation otherwise you may be too easily discouraged and give up.
2. Keep track of everything you spend by writing it down, especially to begin with. Include every cup of coffee that you buy, every ice-cream, every magazine, every lunch you buy instead of making at home or every meal from Macdonald's. These little expenses are the ones that add up and often blow the budget. When you see on paper (or on the screen) how much all these little expenses cost, you will be more motivated to cut back and after cutting back and you see the savings compared to before, it gives encouragement to keep going.
3. Time and plan shopping trips. Make a list of what you need and just buy the things on the list. Never go food shopping when you are hungry because that's the time you will be most tempted to buy quick fixes such as takeaway dinners, cakes or sweets.
Make yourself wait a little while before buying non-essential items, If you still need it after waiting, then include it in the budget. Plan expensive purchases, such as shoes and coats to tie in with seasonal sales if at all possible.
4. Eat at home as much as possible and cook meals from scratch. It doesn't need to be too time-consuming - there are plenty of recipes for quick-cook meals using cheap and fresh ingredients. By buying seasonal fruit and vegetables, you can cut down on food bills and have the added benefit of a healthier family because they won't be consuming as many of the preservatives and chemicals that are added to so many pre-prepared foods these days.
Yes, it is nice to relax and have coffee at a restaurant or coffee shop, but the cost of that beverage is probably ten times what it would cost to have one at home. There is no need to cut out all such treats, just cut back.
5. Buy in bulk when that suits your circumstances; sometimes a few neighbors or friends can pool their funds to get bulk bargains. Check out bargain bins when you enter stores, but only for items you need now, not for those you might need some day! Use any coupons that come your way, but again, don't buy something just to use the coupon! Only buy if you need now or soon.
6. Reduce your use of credit cards as much as you can. It is just too easy to put something on the card, but all these purchases add up and credit card interest is a killer! Sometimes you can bargain with a credit card company for a reduced interest rate, so if you think you can do this, give it a try. Even a half a percent can make a big difference over a year.
7. Plan small rewards or treats when you achieve your savings goals so that the whole saving, budgeting idea is not too tough on everyone. Don't splash out on rewards though! That would defeat the purpose of saving in the first place.
Saving money is mostly about self-discipline, making small savings regularly and sticking with it, not giving up when something comes along to upset all your plans. If this does happen, be kind to yourself and just start again, keeping on track when you can.
Don't spend too much time thinking times are tough and don't develop a poverty mentality just because you are saving. Focus on what you do have and not what you do not have; you'll be a much happier person and more likely to succeed.
