Last Updated on by Buayifa Ojeogwu
“The art is not making money but keeping it”
Yes, you heard it right!
Saving money is an art and you need to perform well in that!
But it can be challenging at times.
So, you need to implement some of the best possible techniques to save money on your daily chores!
But how will you do that?
Let’s find it out!
5 Easy Tricks To Save Money
1. Try Out 50/30/20 Budgeting
You must have heard about the traditional budgeting. And if you are serious about your finances, you might be following that too!
But I would personally suggest that 50/30/20 budgeting can help you to track your dollars in a better way! You need to calculate your after-tax income and divide your expenses into these categories:
- 50% for your needs
- 30% for your wants
- 20% for your savings
Here, you might be confused while differentiating between your “needs” and “wants”. Let’s say, you have bought some groceries from the market. Obviously, groceries come under your “needs”.
But while coming out, you might feel like going to Starbucks. And eventually, you might end up having a coffee along with snacks. And this becomes a luxury expense and comes under your “wants”.
You need to limit the expenses of your basic needs like mobile bills, house rent, mortgages, transportation costs, to 50% of your after-tax income. Whereas, when you are spending on entertainment, expensive shoes, dining out, etc., those expenses are coming under your wants. Most of us tend to spend lavishly on our wants. But this budget plan can help you to cap your expenses on your wants to 30%!
And the most important part is saving 20% of your post-tax income! You can save it for your retirement, emergency fund, etc.!
2. Automate Your Savings
Gone are those days when you used to save the remaining money (if any) at the end of the month!
But from now onwards, you should save your money right at the beginning of the month! Hopefully, you are following the 50/30/20 budgeting rule. So, you can dedicate 20% of your after-tax income for savings as soon as you receive your paycheck.
For that, you can switch to the auto-transfer of funds from your checking account to your savings account.
This way, there won’t be any chance to forget about stashing money for your savings. Trust me, after a certain time, you will be able to see a substantial amount as your savings (depends on how much you are putting aside every month).
And if you want to earn a bit more interest, you can opt for a high-yielding savings account offered by online banks.
3. Use Your Credit Cards Wisely!
Do you use credit cards?
Well, that’s a good buddy! The reward points and cashback offers of most of the credit cards are awesome! But are you using your cards properly?
I mean, like paying off your outstanding balance on time and all? But what if you don’t pay off on time?
The high Annual Percentage Rates (APRs) can burn a hole in your pocket by increasing your outstanding balance daily!
And guess what?
If you pay off your payable amount within the grace period, you don’t need to pay off any interest!
Then why will you pay off some extra bucks as the interest? Because most likely, the interest won’t be a nominal amount as credit cards usually have a higher APR!
4. Use Cash As Much As Possible!
Are you swiping your credit cards for every purchase?
If yes, then you might be vulnerable to the debt trap! Credit cards provide us false financial security. As a result, you might end up buying stuff which is not at all necessary!
But if you carry cash, you are well-aware of your limitations. And there are high chances of not end up overspending. In fact, a study has revealed that people tend to spend less when they use cash!
So, next time, when you go shopping, try to pay off your bills by cash. It can help you save money as there are no chances of overspending! Besides, you can brace yourself from falling prey to the debt trap!
5. Pay Off Your Debts Strategically
Yes, you need to be a strategist to pay off your debts asap! Else, a substantial part of your paycheck might be deducted every month! Thereby, saving money might be a distant dream for you!
As I said that you need to be a strategist to pay off your debts at the earliest! If you are overwhelmed with multiple debts, you can consolidate your debts into a single one.
If you can pay off your credit card debts at a lower interest rate and that too by making a single payment every month, then why not?
Moreover, you don’t need to remember the different due dates of your credit cards. You just need to make a single payment every month to the consolidation company. The company, in turn, will distribute the money among your creditors, based on your debt amount.
So, you can pay off your credit card debts with ease and plan for leading a debt-free life ahead!
You may also love How To Stop Automated Payments From Wrecking Your Budget.
Boom! Easy-Peasy Tricks To Save Money
I hope, these tricks are gonna help you to save more money!
So, don’t wait! Start saving for your bright future ahead.
And if you have any other tricks to save money, don’t forget to share it with us!
Linda Richardson is a financial content writer based in New Jersey and a perennial student with an ongoing interest in learning new things. She uses her curiosity, connected with knowledge as a financial writer, to write about a valuable lesson for small businesses. You can find her on Twitter at @ LindaRossie9 and Facebook at @LindaRich008. She is currently a financial writer for http://www.CreditCardConsolidationDebt.com/