There are many articles online that teaches you how to save money, but most of them requires a certain level of sacrifice. In this article, we will find out that with a little effort, it is indeed possible to reduce your expenses, without having to sell your car or cut up your credit cards.
1. Use a Higher Interest Savings Account
Many people overlook this point, but we tend to underestimate the power of the interest that is credited into our savings account. Think about this, for every 1% in interest earned in a bank account that has $10,000 in savings, it translates into an additional $100 per year earned. It is not going to make you crazily rich, but it is money that you did not have to put in any additional effort (apart from going to the bank and opening the new account) to earn. The wonderful part about these accounts, is that you can access the money anytime in case of emergency. Compared to fixed deposits, higher interest accounts definitely wins, in terms of liquidity.
2. Quit Your Vices
No, I am not trying to tell you to quit drinking/smoking just to stay healthy. My perspective to this is that becoming healthier is a bonus. All you have to do is to have one less cigarette, or one less glass of alcohol a day. Depending on which country you are from, a typical pack of cigarette can cost anywhere between US$4-$12. Smoking one pack of cigarette a day is equivalent to approximately spending US$120-$360 in a month! On top of that, smokers/drinkers have been known to experience a better quality of life when they cut down or quit. That is definitely a good reason to stop now!
3. Inflate Your Tires
Yes you did read this point right, keeping your tires properly inflated really does save you money. Keeping your tires inflated at the proper levels helps to reduce your car’s fuel consumption. According to the US department of Energy this increases your car’s fuel efficiency by 3%, which is equivalent to a $3 savings per $100 spent on fuel. Plus, by keeping your tires properly inflated, you prevent the wearing out of the tire sidewalls, meaning you would not need to change your tires as often. That is additional savings without even forking out an additional cent!
4. Buy in Bulk
For items that we regularly consume and are non-perishable, it really helps to buy them in bulk. Supermarkets and department stores usually offer good discounts for bulk purchases. Items like shampoo, hair gel, and canned food are great examples of items that apply to this category.
5. Coupons and Coupons
Contrary to popular belief, collecting coupons will not make you look desperate. It is actually a wise money saving habit that allows you to get your regular items at a discount. In today’s connected world, coupons are not just limited to cut outs from magazines. Simply do a search online and you will find coupons for restaurants, health memberships, and even a spa treatment. This is definitely a great money saving idea, while maintaining an awesome lifestyle!
6. Use Credit Card Everytime You Can
No, I am not trying to promote overspending here. If you are someone who cannot control or keep track of your spending through the plastic card, then you should stay away from this tip. For the rest of us, credit cards can get us discounts in many places. Sometimes you will need to check with the cashier before paying. On top of that, there are many credit cards that has a cash-back benefit for every dollar spent. This cash-back is either returned to you in your bank account, or automatically used to offset your next credit card bill.
7. Learn to Invest
If you can afford the time to, it makes sense to take some classes on long term investing. Be careful, you must differentiate long term investing, from short term trading. There are many ways to make money in the market. The 3rd richest man in the world, Warren Buffett, makes his fortune using a philosophy called “Value Investing”. To put it simply, look for stocks of great companies, and buy them at a price that is less than what they are worth. This sounds simple, but it takes a little research and understanding in order to do well in it. However, the time, money, and energy invested is definitely worth it in the long run.