Strategies to Save Money
Strategies to save money? Thank yourself for making the effort to look for the best ways to save money! Saving is extremely important. In their research for The Millionaire Next Door, Thomas Stanly and William Danko realized that self-made millionaires allocate 15 to 20 percent of their disposable income to savings or investments. Anyone who has accumulated wealth in the past has been able to spend less than they make.
Strategy to Save Money 1: Attitude to saving
Those who can control their spending successfully share a few important traits. They all have the discipline to control their spending, and understand the benefits of delayed gratification. Conversely, those who spend almost all their income every month are usually indifferent to or entirely ignorant of their spending habits. They demand immediate gratification.
Strategy to Save Money 2: Budgeting Advice
Learn to distinguish among the three categories: fixed monthly expenses, variable monthly expenses, occasional expenses.
Fixed monthly expenses – These are the quasi-necessities that you pay for every month: mortgage payments, car loans, utilities bills, transportation costs, insurance, credit card payments.
Variable monthly expenses – These are the expenses that can easily slip through your pockets without you noticing: meals, movies, drinks, books, CDs. By saving your receipts, you can gradually monitor your spending habits.
Occasional expenses – These are the expenses that you do not necessarily incur monthly: clothes, gifts, vacations, electronics, membership fees.
Strategy to Save Money 3: Save on Bank Fees
Elect to use direct deposit – Instead of giving you a paycheck, employers can also deposit your monthly salary directly into your bank account. Not only is it less troublesome for you, banks will usually be happy to waive some of the monthly fees if you use direct deposit.
Use internet banking – Internet banking is much more convenient than having to go to bank for every other transaction. Almost all banks now offer online banking services: all you have to do is to request for a Internet banking PIN, and you can log on to your account from any place with a Internet connection.
Use the ATM strategically – Do note that each time you use your ATM, you are charged a usage fee. So if you withdraw $20 everyday, you easily waste $1 to $2 on each withdrawal. A better idea would be to use the ATM weekly – withdraw enough cash for the week all at one go, so you do not have to use the ATM all the time.
More Strategies to Save Money
Rent a movie with friends
Much cheaper than going to the movies, this is also more social and possibly more entertaining.
Best forms of leisure: Exercise and Sleep
Incidentally, these two great pleasures are free.
Meet for coffee instead of dinner
Much less expensive way of getting in touch with friends
Go for private labels
Private labels look almost the same (some are identical) as designer labels, but cost so much less.
Save on retail
Wait for sales, always pay with cash, order online so you save on sales tax.
Compare prices online
Use the many Internet comparison shopping sites available online to search for the best prices on any particular item.
With so many strategies to save money, your task is to pick one each week and to implement it! Allow absolutely no exceptions – within a month, you will be surprised by how much you have saved.