Although it may sound too good to be true but the fact is that there are endless possibilities to save money without going frugal and more importantly you can start saving money immediately after reading this article following these ten legit steps. Without any more prelude, here go my ideas to save money.
1. Set Your financial goal: Ideas to save money must have a real positive financial goal. Although there may be a few people, who are just passionate to save money this is not the case with most others. For majority of the people setting a long-term financial goal can really improve their monetary position dramatically. The goal should be measurable and quantifiable. You may want to save money towards ‘buying a new home’, ‘a car’, ‘reserve fund to meet medical expenses’, ‘contributing towards a cause or charity’, or, ‘taking a round the world trip’. So, you should have an estimate of the total amount required and the amount you need to save each month. During this process you will find motivated each day because every single dollar you save will contribute towards your own cause; push you through achieving your own goal with a definite positive purpose.
2. Set a deadline: Nothing in this world works without pressure. So, set your own deadline to meet your financial goal. Make it realistic and achievable. Consider a goal like ‘I want to buy a home five years before retirement’. It works even better.
3. Methods to save money: So, you have your goal set and you have a deadline to meet your goal. Now, let me explain the ways to save money. It will be illogical to presume that someone will grant you huge donations to meet your goal, or, you will find huge ancestral properties under your possession overnight to meet your dreams. These are all exception. Fact is that diligent planning is all that you need to save money.
4. Prepare the budget: It is important to prepare a budget based on available data. Apart from what you might have in your mind, check all the vouchers to ensure you take into account every single dollar spent each month. The monthly budget should be comprehensive and you must stick to it.
5. Find major cost components: Classify your expenses under major heads, like – ‘Gas’, ‘Groceries’, ‘Domestic supplies’, ‘Electricity bills’, ‘Telephone bills’, ‘Medical bills’, ‘Travel bills’, ‘Restaurant bills’, ‘Gift purchases’, and ‘miscellaneous other expenses’. Now find opportunities to save on each of your major cost component.
6. Save money on each cost component: With little bit of practice you can reduce any expenses. For example, to reduce electricity bills, simply put off the lights when they are not at all required. Consider replacing incandescent bulbs with their CFL counterparts. Get rid of excess bulbs and electrical gadgets. Consider energy-saving equipments. For telephone bill, compare various plans and consider one, which is the cheapest. All-inclusive plans like those clubbing telephone, Internet, and cable TV services are likely to save a few extra bulks. For groceries and domestic supplies, use coupons and consider bulk purchase. Look at stores offering better discount on medicines and medical supplies. Check for travel deals and look at cheap airline tickets. Consider homemade gifts instead of spending money to buy a bouquet. As such, there are a lot of useful guidelines in the Internet explaining things you should do to save on any of your major cost components. These are mostly based on common sense with the single basic philosophy – don’t spend, if it is not necessary. And when it is at all necessary, spend minimum.
7. Force savings: For most family men it is important to start force saving. Save a percentage of your monthly income in a separate account each month. This is your exigency fund. Once you have accumulated enough funds, you may not have to consider any ‘Pay Day’ loan or ‘Credit card purchase’ in future.
8. About Credit card usage: If you have any outstanding dues in your credit card account, it will be your first step to clear your outstanding bills. First of all, consider clearing the dues from your monthly savings. It may take four to six months but eventually you will find huge relief. If the outstanding amount is not manageable, consider a bank loan to repay the dues. Consider a credit card purchase only if you have enough fund to pay the bills within due date. Never ever consider installment payment option unless the same is done for the purpose of creating assets like home or jewelries.
9. Find coupons: If you are really serious about saving money, stop spending more than what is required. Look for deals and coupons in different websites; subscribe to newsletters to be informed well in advance about forthcoming offers.
10. Analyze your expenses and savings: Review your spreadsheet each month. You will be amazed to find a lot of useless expenses booked under ‘miscellaneous head’ initially. Work on to eliminate this component totally.