Many people struggle to make savings amidst the urge to spend. Almost everyone has resorted to some ways of savings with some of the ways being ineffective while others yielding mild results. These ways often allow you to save small amounts of money. While it is good to save small amounts of money which may eventually lead to some good savings, smart saving ways allow you to make big savings. When you focus on big savings, you realize you’re getting ahead saving thousands on a yearly basis or even in a monthly basis.
Once you have mastered how to make big savings, you can go back to small savings to see if you can add some more to the already growing bucket of money. Smart savings is not rocket science. It involves changing your normal lifestyle. It starts from saving money on your car, groceries, home and credit. While that list is not exhaustive, that is a good place to start saving. Here a few smart ways to ensure you have some extra money in your savings account.
Avoid Impulse buying
Many families spend thousands of dollars on things they don’t need in a yearly basis. One way you can ensure you don’t fall a victim is by avoiding impulse buying. If only you can stick to your grocery list, you can save up to 23% on grocery bills. Create a grocery list and stick to it when you’re at the grocery shop.
Another way you can avoid impulse buying is by not using credit cards when shopping. People who use cash to shop have a higher level of control over their money compared to the ones who shop with credit cards. According to Dunn & Bradstreet study, people who use credit cards spend twice on vending machines compared to the ones who use cash. Many other research have confirmed that using cash when shopping will see you save more.
Imagine going shopping with either $40 in your pocket or a credit card with a $10,000 limit. You will most likely spend more using the credit card. Therefore, it is prudent to use cash for shopping when looking to save and when the worst gets to the worst, use a debit card.
You can price match pretty everywhere starting from the United States to Canada. Price matching involves checking grocery store flyers and going with them to your favorite store. You will use the flyers to convince the cashier that another store is advertising lower prices. If the grocery prices are the same across stores, you can now shop at the nearest store to save on gas. Shopping on stores that matches prices on flyers with competitive prices can see you save up to 10% on you groceries. A family of four can save more than $1100 annually using this method. As much as it may not be appealing to take flyers with you when price matching, it is an effective way to save money.
Carry a lunch box to work
Many people don’t realize how much money they can save taking a lunch to work. Many people are preparing more dinner to leave some for lunch at work the next day. It is way cheaper than buying lunch at the workplace. Imagine spending at least $7 daily buying lunch while you can save that by splitting the cost with dinner.
Go for a quality second-hand vehicle over a brand new one
Car manufacturers are increasingly making higher quality vehicles. The quality of vehicles released to the market every year is higher all-year round. This is to mean that used cars are not as bad quality as they used to be. Considering the fact that a brand new car starts losing its value right the moment you drive it off the showroom, it is prudent to go for a quality used car to save some money. For example, if you buy a new car for $28,000, its value will reduce by almost $17,000 within the first four years. That is almost the same as losing $100 weekly.
Used cars are nowadays a budget option which can see you save money. It is a great option because you will still get a great car while saving thousands of dollars. However, to get a used car which meets your requirements, you will have to be diligent and wise. A good car should last you at least 15 years without making major repairs. That will allow you to plan for getting a new car that will not see you pay interest on a car loan.
Clear your credit card balance
Credit card balance will set you back an interest paid to the company in a yearly basis. Another way to stay on top of your savings is by paying off your credit cards. It is time to start thinking about the interest you pay on your credit cards to start making smart savings.
Check your property tax assessment value
When a home decreases in value, your home taxes might be still be based on the original assessment value. It is important to keep checking the market value of your home and when you detect that your property tax assessment value isn’t fair, apply for a reassessment. This will go a long way into ensuring you don’t waste your money on taxes that you’re not obligated to pay. If you’re not sure about your home’s property assessment value, you can visit your nearest property assessment office to have a look at your neighbor’s property assessment values and compare them with yours to make sure it is reasonable.
Obviously, there are numerous ways you can save. However, the above are just spending tips on smart savings. Savings is a behavioral and habitual thing in a way and once you get a grasp of it, you will see yourself accumulating money in your savings account. Savings are the best way to take care of your future and secure it. It plays a major role in meeting both your short-term and long-term goals. On top of all, discipline will get you there with savings.