Then you came to the right place because here I am going to share several tips that have helped me a lot to save more than 60% of my monthly income.
1) FOCUS ON ACHIEVING SIMPLE, SHORT-TERM SAVING GOALS
There are many ways to save money, but if you have never done it before or if you are in a tight financial situation right now, I advise that instead of setting yourself a long-term savings goal (one that your mind may feel like something difficult to achieve, and therefore you are going to put it aside), start with saving challenges that are easy to meet.
2) THE 30 DAYS RULE APPLIES
If you have a major purchase in mind and your goal is to save money, it would be brilliant of you to consider giving yourself 30 days of reflection. In the meantime, find out alternatives, compare prices, and above all, ask yourself if that purchase is really necessary. If at the end of the 30 days you have convinced yourself that this is what you really need, then buy it.
3) PRACTICE THE 24 HOUR RULE
If you think the purchase is urgent and you don’t have 30 days to think about it, at least this other rule applies.
Personally, I was a compulsive shopper, and this is one of the techniques that has helped me the most to save money since I started living traveling and opted for a minimalist lifestyle.
Basically, it consists of thinking well (in this case, at least for 24 hours) before making any type of purchase.
4) FREEZE YOUR CREDIT
If you’re having trouble controlling your credit card usage, but don’t want to get rid of it, you might want to consider calling the bank and requesting that your credit line be frozen until further notice.
This technique can help you save money when you are not very good at resisting temptations.
5) SAVE BY ELIMINATING CABLE TELEVISION
With so many alternatives that exist today (such as Netflix, Youtube, etc.), do you really think that you need to pay, for example, triple-play packages?
Call your cable company and find out if it is economically better to have only the internet package.
Among the tips, I always give my family and friends to save money; eliminating unnecessary expenses is the main one.
6) MOVE TO A PLACE NEAR YOUR WORK AND SAVE HUNDREDS EVERY MONTH
This is not always possible, but if you still do not have your own home, live on a lease and work in a company where there is a good chance that you will stay for at least one more year, it would be good for you to consider moving near the company where you work, since that you could save hundreds of dollars in transportation and time.
7) DO NOT BUY CHEAP CLOTHING
It may seem crazy, but I assure you that buying pieces of good quality clothing, even though these are more expensive, is a very good strategy to save money. Quality garments last longer for the money you spend, are more comfortable, and they make you look and feel attractive while you wear them.
8) SAVE MONEY PREPARING YOUR LUNCH AT HOME
If you are one of those who always go to restaurants at lunch, assess the expense you are incurring. Consider bringing your home-cooked lunch to work, as you’d be amazed at how much you can save quickly.
9) CREATE A BUDGET
Once you have an idea of where your money is going, the next step is to make a budget. Keep in mind that you should include irregular expenses, such as a trip to the cinema, a vacation, etc.
Be sure to create a category for savings, and ideally, you should budget at least 10% to 20% of your salary there. I know it will not be easy at first, but as you discover new ways to save, you will increase this percentage.
During the month, frequently monitor your budget and make adjustments as needed. At the end of each month, do an assessment and reassign priorities.
10) AND WHEN CAN WE ALLOW US TO SPEND, INSTEAD OF SAVING?
As my financial adviser explained to me, we can spend when our basic needs are met, and we don’t have to incur debt to maintain our current lifestyle.
We can afford to spend when we have a business capable of generating extra money, as well as an emergency fund with a sum of at least 6 months of our monthly income, and when in addition to all that we have a secure retirement fund. So, we can allocate that extra money to live memorable experiences, depending on each one. That remains with us for the rest of our lives, such as traveling.
