Overview
It is far simpler to save money than to start from beginning. However, saving money is considerably harder than spending it, so most of us end up spending money that we would rather keep in savings. We need a plan before we can start saving money, and the more automatically the plan operates, the better. We run the risk of succumbing to the urge to choose instant gratification when we are given the option of spending money or saving it. So one of the first stages to a consistent savings programme is to remove the element of choice.
Here are five automatic budgeting and money-saving tips:
1) Set up an automated withdrawal programme
With your bank, set up an automated withdrawal programme so that a portion of each deposit is automatically transferred to a savings account that is more difficult for you to access. One approach to achieve this is to instruct your bank to automatically deposit a predetermined sum of money, such as $100 each month, into your savings account.
2) Keep your tiny dollars and loose change.
Place a piggybank in your kitchen, and each time you go home, empty your pockets of change and deposit it there. Throw in a few $1 donations here and there. You would be astonished at how much money you can save with this archaic strategy, despite the fact that it sounds childish. And when the bank can hold no more money, it is so much joy to break it.
3) Make a list of everything you buy, with no exceptions.
Keep a record of each purchase you make. Note the items you purchased along with their prices. Write down any tips you may have left as well. Maintain your log book with diligence; if you do it effectively, you can do it for just one month and acquire enough data to enable you to save even without the log book. Most people discover hidden costs, such as daily coffee costs of $10 or a monthly gym membership of $50 that is seldom used, and can then quickly change their budget to start saving money right away.
4) Reduce your Christmas spending. and host events at home.
Give handcrafted products, poems, or promises to run errands or barter with friends in place of expensive Christmas presents. During one snow season, a man we know agreed to clear the pavements of his friends. He saved some money to use once the snow and ice thawed, and his pals received wonderful presents. Cook at home or host friends for a potluck supper as an alternative to dining out. Instead of going to the movies, rent some DVDs.
5) Avoid going shopping when you're hungry.
According to scientific research, persons with high appetites would not only eat more, but also consume more of everything else. Many of us are aware that when we shop for groceries when we are hungry, we tend to buy more than we really need. Don't do it, then. Afterwards, go shopping. However, as research indicates that it holds true for all types of shopping, always eat a filling snack before visiting the mall, a clothing boutique, or a sports store. You'll save more money and spend less.
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