Looking for ways to cutt down on your spending and save extra cash? Here are 5 ways to achieve that.
- Make plans to save.
Now that you’ve made a budget, create a savings category within it. Try to save at least 10 to 15 percent of your income. Consider the money you put into savings a regular expense, similar to groceries, to reinforce
If your expenses are so high that you can’t save that much, it might be time to cut back. To do so, identify nonessential that you can spend less on, such as entertainment and dining out, and find ways to save on your fixed monthly expenses.
- Choose something to save for.
One of the best ways to save money is to set a goal that you will love to accomplish with your savings. Start by thinking of what you might want to save for, perhaps you want to save for a new car, a new house, a vacation with family or even for retirement.
Then figure out how much money you’ll need and how long it might take you to save the needed amount and make a commitment to make gradual efforts to achieve them.
- Create a budget.
At the heart of any savings plan is a carefully outlined budget. Budgeting helps you prioritize your expenditure and find a balance between spending and saving money across a whole year.
By checking your credit card statements, bills, banks statements, and receipts, you can work out all your regular expenses, such as your rent or home loan, transport, insurance, and electricity.
- Record your expenses.
A great step to save money is to figure out how much you spend and keep track of all your expenses both business and personal.
Keeping a good record of your expenses over time will help you review your spending habits and cut off on unnecessary spendings that may be eating up on your finances.
- Embrace Delayed Gratification
Delayed gratification refers to when you resist a smaller but more immediate reward in order to receive a larger or more enduring reward later. For instance, if someone offers to sell you a new pair of shoes or a really nice wristwatch, wait for a clear 48 hours before you make a decision on whether to buy or not. This gives you sufficient time to decide if this is something you need or something you want. If you work with this strategy, you’ll end up not buying quite a number of things you originally wanted to buy. There’s always something to buy; the TV and internet are riddled with advertisements of products and services we love.
