THE SIMPLEST WAYS TO SAVE MONEY
Now that you know what to do in order to get a handle on your finances, it is time to learn about little, easy things you can do to save money. Sometimes, saving money is as easy as making a simple switch or thinking about your alternative options. You will learn some great ways on how to simply save money in this chapter!’
1.Fold it, Put it in your Pocket, and Keep it there
One of the best and most commonly quoted advice about saving money is this: “The best way to double your money is by folding it in half and putting it in your pocket.” In reality, literally, folding your money bill in half won’t double its amount. However, the total value of what you have can and will be doubled for each day you follow this habit successfully. If, for example, in each day you set aside five dollars without touching or scheming to spend it on something, by the end of the week you would have added 35 dollars to your savings.
HOW IT HELPS:-
Folding your money over or simply keeping it in your pocket won’t just save you some money, it will help control those shopping impulses. One of the most common mistakes people make when they get their money on payday is splurging. It’s no surprise if you can relate to a scene like this – pay day arrives and you feel as rich as a king. It only takes a week, or less, of seemingly endless wealth until you’re broke or nearly broke. By the end of the month, you’re sulking, cutting down expenses and waiting at the edge of your seat for the next payday. The cycle happens and it will continue to happen over and over again until you decide to act upon it.
2.Saving Every Penny
Most people think of small bills as insignificant because, well, they are small or have less value and would not really be of any use in emergencies. The truth is, they are actually the most significant portion of the idea of “savings”.
HOW IT HELPS:-
Small amounts are what a person builds up and turns into millions. Mountains are not made of singular gigantic boulders. They are made of sand, stones, rocks and some boulders. In the financial comparison of mountains to savings, it’s the pennies that make up the base and not the hundreds. While saving pennies won’t make you rich, it will change your relationship with money. If you practice putting your coins in a tin every day, you will condition yourself to save. This brings us to the next overlooked technique in saving money, for long-or short-term purposes.
3.Starting Small and Starting Now
Starting small is the easiest way to save, but starting small is belittled by most because of the expected value it achieves. “Every little bit counts,” that’s one saying that applies to a lot of things, including saving money. Since the idea of saving up is a continuous and consistent habit, even the small contributions add up to the pile. It’s also easy to save by starting small, because it gives people enough freedom to buy the things they need or want. It won’t feel like such a responsibility, which will lengthen its chances of actually growing to be a successful habit.
HOW IT HELPS:-
The benefit is simple, relating to saving each penny. The sooner you start saving, no matter how small the beginnings, the more chances you’d have to accumulate your wealth.
4.Develop Financial Strategies
Plan your expenses or, in a much better sense, strategies. When allowances or salaries come, you always have the urge to buy things you’ve fantasized about during times of financial “drought”.
HOW IT HELPS:-
If you already have cash allocated for both these urges and the debts that need to be cleared, you won’t get off course and get lost in your financial system. In other words, you won’t get a migraine from piled up bills or worry if your next salary won’t just end up as a payment for debts.
