Savings Tips You Need to Try Now

Posted on: Jun 20, 2021 Publish By: funerallink

Saving money is one of the most detrimental life skills that you must master especially now that we’re facing financial difficulties brought by the pandemic. If you’re new to the art of saving money, the first day can come by as a breeze. However, you’ll be tempted to take these savings out for a shopping spree, a day out with friends or splurging yourself with some good food.

When this happens, you’ll realize how saving money takes discipline and you must build the habit of saving, no matter how small the amount is. If you want to prepare for unexpected expenditures and cushion financial impacts that will inevitably happen down the road, here are some saving tips you need to try now.

Prioritize Savings

Make it a habit to set aside at least 10% of your paycheck as soon as you receive it. If possible, set the amount to a savings account you can’t easily access. Try opening a savings account that doesn’t include an ATM card so you can’t readily withdraw money from it. This will make you think twice about getting money since you need to line up to banks and talk about major inconvenience right there.

Write Down Expenses

You can use a writing pad for this or better yet, use your phone’s notepad. This should allow you to get a glimpse of how you’re spending and what items are you most likely to spend on. Whenever you reach out for your wallet or your card to pay, list everything down.

Pay with Cash Only

There are individuals who treat their debit cards like credit cards. Or worse, use their credit cards for a daily shopping spree. While it can be easier to pay using the flashy plastic cards, you’ll only find yourself spending than what’s necessary because cash is invisible to you. As much as possible, use only allotted cash for transactions and avoid withdrawing your savings.

Use Cash Envelopes

An extension of paying only with available cash is using the envelope method to limit expenditures. The excess cash you have (net of savings) will be divided into categories. In this manner, you can stay true to your budget without going over the limit.

No-Spend Days

This tip is probably the most difficult but you’ll discover that you are spending on items that aren’t really beneficial or necessary to your life. This allows you to be mindful of where you are throwing your money. To avoid overwhelming yourself, start with two days of no-spend days a week.

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