Due to COVID -19 things have changed. Now more than ever, we have to be wise in spending our hard-earned money. Here are 10 easy tips that you can follow to save money:
1. Track your income and expenses
How much money are you earning and how much of it are you spending and saving? When it comes to budgeting, tracking is key. On a monthly basis, set a budget, list down all your income and list down all your expenses too. You can easily see what’s draining your money. Set aside 50% for needs, 30% for wants (if you are tithing take 10% here) and use the remaining 20% for investment. Stick to your budget!
2. Use cash
Use cash and ask if the store is offering discounts if you pay in cash. Avoid using a credit card unless you are certain that you can pay for the purchase in full before the due date. If you cannot pay for it in cash, you cannot afford it.
Using a credit card can give you a false sense of having money and if you can’t control the urge to buy, you will be in a financial crisis soon.
3. Pay your credit card in full before due date
If you know how to wisely use a credit card, it can help you save money too. First thing to consider is your ability to pay for your credit card bills in full before the due date. Set an alarm, mark it on your calendar because failure to pay in full and on time, will cost you money.
4. Remove online shopping apps
Avoid temptations, uninstall online shop applications and unsubscribe from emails alerting you of sale. If you cannot resist shopping, remove the apps that’s tempting you.
5. Avoid take out and eat out
You might be surprised at how much money you can save in a year if you avoid eating out and take out. Not only will you save money, but you will be eating healthier food too because you have healthier food at home which would also mean saving money on possible health issues. So much better, right? When you are heading out, make sure you’re not hungry or if you will be hungry, pack your food.
6. Create a grocery list
Make a list of what you need to buy, the keyword here is need. Follow your grocery list and avoid buying something just because they are on sale. Consider buying generic products too, there are generic products out there that work just as well compared to expensive branded-items. Never go shopping when you’re hungry.
7. Buy in bulk
Buying in bulk and in a bigger proportion will save you money. Some experts estimate buying in bulk saves you around 20% on your purchase. In bulk buying, it is important to compute for the price per unit or ounce to know how much money you will save. Remember to buy only those with longer shelf life, non- perishables like laundry, detergents, coffee, toilet paper, diapers, soap and the likes.
8. Cook meals at home
Nowadays, people are spending a lot of money on food. Ordering food online and having it delivered is okay from time to time but consider this, order food for the family for merienda or dinner for say P850- P1200. Obviously, that amount of money can actually pay for several dinners if you went to the market or grocery and cooked your own meals.
Before spending money on something, consider doing it yourself. Can you watch YouTube and make it yourself? Do you have somebody in the house who can help you do it? Do you have materials at home that you can repurpose? Instead of buying it, maybe you can just do it yourself and recycle some of your unused items at home.
10. Sleep on it before a big purchase
If you are an impulsive buyer, sleep on it for several days and see if you still want to buy it. This is especially good for items that are costly and for items that are on your “wants” list.
Saving money requires discipline, consider getting an accountability partner if that will help you stay on track. Happy saving!
Disclaimer: The views and opinions expressed here are those of the author and do not necessarily reflect that of the Insurance Company that the author is representing. The content shared here should also not be construed as advice. Please talk to a Financial Advisor/Planner.