Would you like to find the answer to a rhetorical question “Where is money constantly going?” Then you should consider how much your everyday habits cost you. Do you tend to buy something you don’t actually need? Do you make buy luxury items just to keep up with your friends?
Saving doesn’t come naturally to most people. According to Statista studies, in 2017 personal savings rate was 2,4%, comparing to 5,4% in 2016. But there are certain habits you can adopt that will eventually help you keep more money in your pocket. Consider some of the following money-saving habits and lift a huge weight off your back.
Pay Full Price Instead of Payment Plans
One of the most important money-saving habits is always to pay cash instead. Large purchases such as purchasing a house, a car or paying for the kids’ education are definitely the exceptions. There may be various situations that will require additional or emergency financial help. You can apply for urgent money help, like Personal Money Service loans by phone but remember to pay them off on a monthly basis. Otherwise, you will have more unexpected expenses you need to cover.
As for other situations, it’s better not to go on a payment plan. Avoid taking risks and using a payment plan that won’t improve the financial situation. Try your best to save up the money until you can afford it. Practice this habit regularly and you will notice visible results.
Automate Your Savings
Automating your savings is probably the best and the most popular money-saving habit. If possible, ask your employer to establish direct deposit into your savings account. If not, you can set up to transfer a particular sum of money automatically every pay period.
It will become much easier to take advantage of the money you don’t see and, therefore, can’t spend. It doesn’t mean you won’t be broke at the end of the pay period, but at least you will still have your savings account. Spenders might benefit from the automatic savings plan the most.
Track a Budget
Monitoring a budget will help understand better how much money you are spending and earning. Writing all the expenses is another wonderful opportunity to save some cash. This way you will be able to allocate a certain amount of money to each expense category and become more confident in outlay. Create a spending schedule and find out where the money is going and how much you can save.
Use Cash Instead of Credit Cards
The last but not least significant money-saving habit is to use cash instead of credit cards when you buy something. It may be tempting to use a credit card and not to feel that your money is flowing away. On the other hand, if you are a natural saver, do not but items with a higher price tag spontaneously.
Try to pay off your credit card each month in full, then a card won’t do you harm. This survey reveals that 82% of consumers prefer using cash for smaller items. Such a habit is especially useful for spenders who can never save a dollar, but you won’t be able to overspend if you are using cash.
Even the most rock-ribbed spenders will be able to start saving money if they adopt these useful money-saving habits. No matter how tight your budget is, certain habits might help you gain financial freedom.