Who else finds it hard to save money?
Saving money is such a headache. Especially when you have some amount with you. You feel like you can just buy anything you want to buy and still be left with enough.
It’s undeniably true that we have so many expenses more than the money we get or have. It’s always just never enough. No amount is ever enough that’s why even billionaires strive to continue making money every day. If it was, then why would they even bother? they’re already freaking rich right?
Here’s the thing. You want to buy food you’ve been desperately craving for, some pretty clothes you just saw, nice shoes, get your hair done, need a new phone, go out with your friends, buy a car, and the ridiculously long list goes on and on and on. Next thing you know, you’ve run out of money without having done anything important.
It’s no lie that we spend money more on liabilities rather than assets. Don’t get me wrong, I know some people do consider assets first but most of us put so much effort on taking care of liabilities before we even think of fundamental things
An asset is a resource with economic value that an individual, cooperation, or a country owns and controls with the expectation that it will provide a future benefit. Example a business
A liability is roughly anything that has no future economic value and does not generate you profit. Example bills.
In short, assets put money in your pocket, and liabilities take money out.
Lucky for you, I happen to know some of the most effective ways you can use to save your money!
Let’s get on, shall we?
1: START TRACKING YOUR EXPENSES.
Oh yes! Track all your expenses and figure out what things have an affair with your money. When you do this, you get to see what expenses you engage in most and why. It will also help you to understand the things that take up too much fraction of the money you have. When you start tracking your expenses, the road to saving will be as smooth as a baby’s bum!
What you need to do is get a pen and a special notebook or pad strictly for expense tracking (you can also download some apps or use in-built ones on your phones. whatever suits you). Write down everything that you spend money on, track how much you use for each and record them.
2: START BUDGETING.
After recording or tracking your expenses, you should start making a budget out of everything you need in relation to the amount you want to use. I’d recommend putting similar things together in groups.
Budgeting is hectic, I know. But it’s really important to budget the amount of money that you’ve set out to use because if not, you’ll end up using more than what you primarily had planned. If you can’t do it manually, there are dozens of apps to help. What’s the technology for?
3: SET YOUR PRIORITIES.
There are things that we can’t just go without. These are priorities. I know food is a priority for most of us (or all) but some prefer beer hahaha! Anyway, after setting your budget please highlight all the most important things you need because they won’t or can’t be substituted.
Please make sure you set your priorities right and group them too. This way, you’ll understand what you can’t live without and what needs more attention. They are the first things that you should spend your money on.
4: CUT DOWN YOUR SPENDING.
You read that right! Just cut off all unnecessary things from your list. You don’t need to party or get expensive things all the time just because you have money in your hands. You don’t need to buy clothes and shoes every week or month.
Some things are just not that necessary to have all the time. Cut down your expenses and see how much money you get left with from your budget. You can save that money for emergencies and any other important future needs outside your budget. Cutting expenses is hard but it really pays off.
5: SET SAVING GOALS.
Uh-huh! Do you have weekly, monthly, or even yearly goals? Like maybe a vacation once or twice a year, a new brand that was released and stuff like that? Then having set goals is the best way to get money for them. Save money for something that you want to do without interfering with other things.
Try saving some fixed amount every week for a monthly goal or a fixed amount every month for a yearly goal. Instead of just taking whatever money you have for what you want to do, just try doing this instead and see how effective it is.
I’ve written only five ways or methods. They might seem few, but you know what they say, “less is more”.
Some other ways for saving up money include;
- Getting a side job/gig.
- Sell things that you no longer need.
- Rent out equipment.
- Sign up for cashback offers.
- Ask for discounts.
- Buy on promotions.
Try these methods and let me know in the future how they worked out for you.
A penny for your thoughts? Let me know what you think in the comments below and please share with people who need this.
Till next time,
Image by Freepik