It seems like everywhere you turn. Lately, you need to cut down on your spending, save money and live within your means. With more and more Americans feeling the pinch as the pandemic rages on, managing your money correctly can be a great help if you are struggling.
If you want some easy money-saving tips, you need to start with the basics.
Save Don’t Spend
You should always follow the basic principle of 50/30/20. 50% of your income should be on essential living costs, 30% for fun, and 20% for savings. It might mean you need to make some cuts in certain areas to achieve this.
However, if you are in debt, you should put your 20% towards clearing down your debt and reducing what you owe.
Finding ways to cut your grocery bill is another way to reduce your outgoings and get a handle on your spending.
Stocking up by taking advantage of different offers on frequently used products can help you to stretch your money further. For example, buy nuts in bulk and other cupboard essentials and toiletries that can be easily stored in cupboards and won’t spoil.
Don’t Impulse Buy
Impulse purchasing can really dent your finances, and if you cannot be trusted not to splurge on items you don’t need, you need to look at ways you can stop yourself. Be it using cash only when you go out and leaving your card at home.
A good question to ask yourself before you buy anything new or sign up for new services. Are you actually going to use what you are about to buy enough to justify the cost? And is it essential for you right now?
Being strict with yourself over purchases can help you to think realistically about what you are buying. Go away and come back another day to assess whether you still need it. If, after a week or so, you realize you do, then go ahead and buy. If not, then you have saved yourself some money.
Check Any Workplace Benefits
Does your company offer any perks you aren’t taking advantage of? While this isn’t true for all companies, some offer perks to entice people to work for them and invest in their employees’ well-being. Check if this is something your company offers and use them as much as possible. It can help you to save money on services you would use anyway.
Implement No Spend Days
Add in a select number of no spend days per month where you can only use or eat something you already have. This can be effective if you do this close to payday to avoid the temptation to spend your wages as soon as they hit your account. Avoid taking the car and going for a walk with a homemade picnic, stay away from places wanting to spend your money, and see how well you fare spending no money.
Set up price alerts online for offers for items you need to buy. Price checkers can automatically alert you to drops in prices. Say, for example, you need to buy a birthday gift, and you know in advance what you want. Set up an account with a price tracking tool and enter in the items you want to buy. When prices change, you can take advantage of lower costs as they drop and save some money.