Saving money, or the “saving habit”—as American author Napoleon Hill put it many years ago in his classic, “Think and Grow Rich”—is the foundation of all financial success. Saving money gives a way out from the uncertainties of life and provides with an opportunity to enjoy a quality life. Wealthy people have a great habit of saving money and controlling their expenses to grow wealth.
|| Nishica Choudhary
“Don’t save what is left after spending; spend what is left after saving” is the advice given by the world’s most successful investor Warren Buffet. The importance of saving money cannot be overemphasized. For example, Warren Buffett is one of the world’s richest men. He knows the importance of saving money. So, he values money and always practices spending money wisely.
Saving is an excellent habit that you must inculcate early on in life to ensure your financial security.
Saving a Few Bucks Really Does Matter
One of the cornerstones of saving money is understanding the time value of money, that is, the concept that $1 today is more valuable than $1 a year from now. This one money saving tip could help a person transform their balance sheet over the next 10 years as you free up cash to put into reserves.
The longer your money has to grow, the better for you.
With a few tweaks to their spending, people will be on the fast track to saving money in no time. It’s not rocket science, though. Here are 6 money-saving tips.
6 Practical Ways to Save Money
Cut down on groceries.
Save money on groceries by planning out your meals each week and taking a good look at what you already have in your pantry before you head to the store. Here are few ideas to get started:
- List it Out
- Follow Storage Rules
- Strike a Good Deal: Clubbed offers are a great way to save money
- Plan your Meals
Cancel automatic subscriptions and memberships
Chances are, you’re paying for multiple subscriptions like Netflix, Hulu, Spotify, gym memberships, trendy subscription boxes and Amazon Prime. It’s time to cancel any subscriptions you don’t use on the regular.
And for those subscriptions you do want to keep around, think about sharing memberships with some family or friends.
Not just in newspapers and junk ads anymore, coupons are available on company websites, apps like SnipSnap, and online. Before you go out shopping, check your phone or computer and increase your savings.
Focus on recurring expenses
While every little bit helps, it’s your large, recurring expenses that provide the most fertile ground for boosting your savings, says the team at The Thrifty Issue.Even if you’re happy with your mobile and internet service providers, ask them if they have a cheaper plan. This is information they don’t always volunteer to existing customers.
Plan your meals
If you know what you’re eating for the week and have shopped accordingly, there’ll be no need for random visits to the supermarket. Extra visits result in your spending more money and even wasting food.”It will be even easier for you to stay within budget by buying all of your staple items at lower-priced stores.
Become a ‘promiscuous consumer’
Chances are the vendor in question knows you’re less price sensitive than most prospective customers. They could be taking advantage of your loyalty or, worse, taking you for granted by charging you non-competitive prices. Don’t allow your emotional connection to a vendor to get in the way, start looking for a better deal elsewhere.
Saving money as a teenager is hard, especially when they have friends who are out buying new clothes and going on weekend trips. But it’s not impossible. Here’s how teens can save:
Separate spending money from savings
Savings are for essentials and emergencies, not for more straightforward purchases like food and so on. The smart thing to do is to have a checking (or “transaction account”) and a direct deposit account which teenagers can access on demand.
Keep track of your purchases
Always date your entries and divide your money into categories, i.e., your income and expenses. That way you have a record of your spending so you know whether you’ve been spending more than you should be. Keep all your receipts and write down your spending totals.
Ask your parents
It’s not a bad thing to ask your parents for help when trying to save a few bucks. You can ask your parents to match your weekly or monthly savings by contributing something to your account.
When you spend, it doesn’t mean you have to spend alone. Think about sharing costs with your friends or siblings where you can, whether on magazines, trips, books and so on. Capitalize on any interests you share with people by splitting the things you each want.
In essence, it’s not hard to save money as a teenager. By applying these simple methods, you can start saving lots of cash. It teaches you how to handle money more responsibly, which is a lesson you’ll be grateful for in your adult life. Being financially capable is a strong asset to take into adulthood.
When you know that you have your financial needs under control, you can live a secure, happy, and quality life. Therefore, saving is an essential tool that will make your future financially stable. Hence develop the habit of saving and start as early as possible. Saving doesn’t mean that you cut your needed expenses extremely. Rather avoid costs that are unnecessary or not much outstanding such as watching movies or dining out frequently.
Always remember, a properly inculcated savings habit leads to increased happiness by bringing both financial security and financial independence.