These days, in our world of instant gratification, it's more important
than ever to be able to stay focused on saving money any way you can. So to
help you monitor your spending habits and cut expenses, here are 20 easy ways
you can save every day—starting right now. How's that for instant
gratification?
1. Make a weekly "money date." Commit to sitting down
with your money once a week for a money date. During this time, update your
budget, review your accounts and track your progress against your financial
goals. Like any relationship, if you want your financial life to improve, you
must spend time with your money.
2. Plan out your meals for the week. Taking a few hours every
weekend to grocery shop and meal plan for the week will definitely save you
money, as dining out is the No. 1 expense for most households. By eating at
home, you save money that would otherwise be spent on tax and tip—and you
usually save calories, too.
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3. Cut out cable. Gasp! Cut out
TV?! Never! But with services like Hulu, Netflix and Amazon Prime, you can now
watch your favorite TV shows and movies for a fraction of the cost of cable TV.
A study by market research firm NPD Group shows that cable bills will
soon grow to an average of R123 per month, or R1,476 per year. By switching
over to an online service or cutting out TV altogether, you can save that money
for another financial goal—such as paying off debt, traveling or saving for a
down payment on a home.
4. Switch to an exercise pass
program. If you love working out, an exercise pass program such as Class
Pass is the way to go. By paying a membership fee of R99 per month, you are
welcome at many of the best studios in your area. And classes—like cycling,
yoga, Pilates, barre, strength training, boot camp, dance and more—are
unlimited. This beats having to pay for each studio's monthly membership or
individual class fee, which can add up to hundreds of dollars a month.
5. Host a potluck. The more
friends you have, the more money you spend on lunch dates, birthday parties and
gifts. Switch it up and, instead of meeting over a fancy dinner, host a potluck
and have everyone bring his or her favorite dish. That way, you can save money
you'd spend on restaurant extras, such as tax, tip and parking—and you'll
usually have a more intimate meal together, too.
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6. Leverage lodging rental websites. Finding a
place to stay while traveling is so convenient when you use a lodging rental
website such as Airbnb, Travelmob or Housetrip. You can often find a place that
has a kitchen (so you can cook meals at home to save money) at a rate that's
comparable to hotels. You can even rent out your own place on sites such as Airbnb
while you travel to make some extra cash to pay for your own travel expenses.
It's a win-win scenario.
7. Make coffee at home. This one's
not my favorite, as I absolutely love going to coffee shops and drinking
delicious organic coffee. However, spending R4 to R5 on coffee every day
definitely adds up. So try my approach and allow yourself a few days a week to
buy coffee at cafés, and make it at home the rest of the time.
8. Work more. When you're
working a lot, there's not much time left to shop and spend money. So stay busy
and pursue a career you love.
9. Wait 48 hours before you click
"buy." Since we can have anything we want these days with just the click
of a button (there's that instant gratification again), you need to find a
system to help buffer your impulse purchases.
Example: Wait 48 hours before spending money on things that cost more
than a certain amount. When you do, you will find that, most of the time, the
item was more of a "want" than a "need." Plus, you'll save
money and work toward being more mindful with your spending.
10. Use blogs and Pinterest to learn
DIY beauty treatments. Self-care is important—but going to spas and getting pedicures,
massages, etc., can really add up. Allow yourself a certain amount to spend on
these things; then use blogs and apps like Pinterest to find at-home beauty
treatments to help you save money. Often you can find a DIY organic option
using common household or kitchen products.
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11. Outsource online. Time is a
commodity, and your time is precious and valuable. And these days, there are so
many tasks you can outsource that will save you time and money. But how do you
figure out if outsourcing something is worth the expense?
A great thing to do is to actually calculate the cost of your time,
which will help you figure out if you can pay someone to do something for less
than your hourly rate. Here's an example: A monthly net income of R3,000
divided by a total of 160 hours worked equals an hourly rate of R16.75. Now
that you know the value of your time, you can strategically outsource it using
a service like Fiverr or Task Rabbit for a fraction of your own hourly rate.
12. Get creative with gifts. Find creative
ways to express your love to friends and family members with free, lower-cost
or handmade birthday and holiday gifts. After all, a handwritten note
explaining why you love someone can be more sentimental than some expensive
gift he or she may never even use. Most people will appreciate the thought behind
your gifts more than anything, so don't be afraid to save money and find free
ways to celebrate birthdays and holidays.
13. Choose quality over quantity. This can apply to
food, clothes, electronics and much more. Although it's tempting to choose the
more budget-friendly version of an item, sometimes choosing quality over
quantity will save you more in the long run. Save up your money and get the
best-quality product you can afford, and leverage the cost-per-wear philosophy
with more expensive clothing and shoes.
This applies to food, too: Buying quality organic food can nourish you
in ways that fill you up more than the prepackaged, processed stuff and
potentially save you money on health-care expenses in the future, since you're
taking good care of yourself. Find a balance that is right for you and choose
quality whenever you can.
14. Deal with your emotions. Excessive
spending is often a way to avoid feeling certain emotions. If you check in with
yourself before you go on a major spending spree, you may be able to identify
if you're feeling bored, lonely or stressed and are therefore spending money as
a means to avoid the underlying emotion. Check in with yourself before you buy,
and be mindful with your spending.
15. Stop trying to keep up with the
Kardashians. It's hard to keep your blinders on and not compare your financial
life to that of others, especially celebrities. However, it is really important
to be clear about what matters most to you and make sure you build a financial
plan that supports that vision. This will keep you moving toward your financial
goals and stop you from spending money on things you don't need, to impress
people you don't like.
16. Read a personal finance book. When you learn
about personal finance, you'll learn even more strategies to help you save
money for your goals in life. Knowledge is power, and the more you know, the
more you can save.
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17. Balance your
"FOMO/YOLO" mind-set. With social media controlling our lives like
never before, people often fall victim to the "fear of missing out"
phenomenon and instead go overboard with a "you only live once"
mentality.
While it is important to live in the present and soak up each precious
moment of life, make sure you balance that out by saving for your financial
future, too. Without checks and balances in place, you can find yourself saying
yes to everything and spending more money than you have—all due to the fear of
missing out.
18. Map out your financial goals. Be very
specific with your financial goals. For example, saying, "I want to save
for a home down payment" is not enough. You need to map out how much you
need, by when and what you need to save every month in order to reach the goal.
When you know what your targets are, you're more likely to stay the course and
continue saving for them for the long term.
19. Keep your eye on the prize. Staying focused on
your goals takes discipline and determination. Saving can be easy and exciting
at first, but after a while you may lose that initial motivation and start to
find other things you can spend that money on. To avoid veering off course,
check in with your goals regularly and keep your eye on the prize.
"The truth
is, there are many ways to save money. Find the ways that work for you, and
slowly start incorporating the strategies into your life."
20. Track your progress. South Africans save
only 5.5 percent of their money compared to the 20 percent that personal
finance indicates you should put away. But instead of feeling ashamed about
your lack of savings, just start by saving something.
Even 1 percent is better than nothing. Track your progress and continue
to increase the number year after year. Step by step, day by day, you can get
to that 20 percent savings level.
The truth is, there are many ways to save money. Find the ways that work
for you, and slowly start incorporating the strategies into your life.
—By Brittney Castro, founder and CEO of Financially
Wise Women.
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