Many of us develop bad habits that drain our money. Often, we are not even aware of these. If you take the time to look at them and add it up over time, you will realise that you could save a lot of money. You need to stop these habits, or at the very least, cut them down.
You will be amazed at how much money you can save every month or year. Over a few years, this will add up to a lot of money.
Why save money?
By saving on unnecessary costs you will have more money left. This will allow you to pay off debt faster, save up cash, make long-term investments, or buy the things you want with cash.
Debt is expensive and paying it off faster will save you. We should all try to put money away for a rainy day and save for retirement. It is also much better to buy things for cash which could also mean great savings.
Here are a few of the habits that you should stop that will allow you to have more money left at the end of the month.
1. Paying interest on debt
This is the most common trap and many people battle with this. If you buy furniture on credit, for example, you will pay a lot more over the time of the loan than the original selling price. You need to work out the total cost that you pay to see if it is worth it.
There are also other costs that are added on such as fees and credit life insurance. This insurance will settle the loan if you die but can be expensive. There might also be additional costs. Be sure to read the agreement carefully and add up the total of all the costs and charges.
Credit cards, personal loans, vehicle finance, home loans, and other debts can also add up to a lot of interest every month. Be sure to look at how much you are paying.
Many debts allow you to make additional payments which can help you save on interest charges. Some will have penalties for early settlement so be sure to check this out first. Try to pay off the loans that charge the most interest first.
2. Manage your bank charges and ATM fees
This is another area many people waste money. Some banks charge more than others but most have a range of accounts and options. The banking market has become very competitive so shop around for the best bank and the best monthly plan.
ATM fees can also add up. Always try to use your ATM from your own bank as this is less expensive. Another option in some areas is to draw money at the till. This is normally the cheapest option.
Look at your monthly costs and look around for ways to save money.
3. Eating out and takeaways
We all need to treat ourselves to a good evening out now and then. Sometimes, we are tired at night and just need an easy takeaway meal. While this is fine if you do it on special occasions, many people get into the habit of doing it too often. This can quickly become very expensive.
Eating at home will take a bit more time and effort but will save you a lot of money. The cost of drinks alone is very expensive when you go out. Treat yourself and your loved ones from time to time but do not make a habit of eating out or getting takeaways too often.
4. Shopping
There are many ways to save money when shopping. This is true of grocery and food shopping as well as clothing or other types of shopping. Here are a few tips to help you save money and avoid bad habits.
Always have a shopping list. There might be other things that you need that you see while you shop but if you have a list and try hard to stick to it you will avoid buying things you do not really need.
Look for good specials. There are often reduced items at discounted prices that are worth buying. Make sure you have the space especially if they need to be in a fridge or a freezer.
Buy in bulk for bigger discounts. Again, space might be an issue but one way to buy in bulk for the discount is to get together with friends, family, or neighbors. That way you can enjoy the discounted prices without having to keep all the items.
Use loyalty cards. Many of the larger stores have loyalty cards that give you additional discounts or cash back. Some of them are amazing. Use them!
Try, when possible, to shop without the children and don’t shop when you are really hungry. Both of these can lead to you spending more than you have to.
Shop around. Look at the local adverts and get an idea of who has the best prices for the important things that you need. If you buy the specials from a few different stores you can save a lot of money.
Avoid the shops you know you spend money at. We all have those stores. It could be shoes, clothing, or other items. Unless you really need something, simply stay away from these shops to avoid the temptation to treat yourself.
Look out for coupons and other offers in your local newspapers.
5. Have a monthly budget
This is something very few people do but is a great habit to get into to save money. You should have an idea of what your fixed monthly expenses are. Work out the amount you need for food, entertainment, clothing, your cellphone, and other expenses.
The key is to create a budget where your costs are less than what you earn. This is not always easy but has to be done. Looking at it written down will help you to work out where you can or must cut back. Try to stick to your budget. Look at it and update it often.
6. Have goals
Without clear goals, it will be difficult to save. You might want money for a house, a wedding, education, a car, or other reasons. Workout how much you need, write the goal down, and work it into the budget we discussed above.
Without a saving goal, you will find years have passed and you are no closer to reaching your plans.
7. Get the whole family on your side
You can’t do it alone. Involve your partner, children and other family members that live with you and rely on you. Explain your budget and your goals. Get everyone on the same page so that you can count on them for help. This will avoid situations where people waste money and defeat your plans and goals.
8. Smoking, lottery tickets, bottled water, and other money wasters
There are some things you need to avoid. Smoking is a personal choice and we are not here to judge you. Just understand that you are burning money.
Bottled water is great if you are traveling otherwise chilled water that has been boiled is just as good and free. Lottery tickets are a waste of money. Your odds of winning are very small and not worth the cost of the tickets.
9. Watch your cellphone costs
Communication is important for business and personal use but you need to watch the costs. There are so many plans and options that it can become confusing. Look at how and when you use your phone. Research the different options available to find the one that works best for you and will save you money.
Simply being on the correct plan can save a lot every month. Remember what plan you are on and try to use your phone accordingly.
We are lucky these days that, provided the data speeds are not too bad, we can talk on WhatsApp and other platforms. This is much cheaper than a normal voice call.
10. Keep basic costs down
You want to keep your basic living expenses as low as possible. This includes fixed costs such as rent or bond repayments as well as things like electricity and water. Spend within your means and don’t commit to something that will put you under financial pressure.
In terms of electricity and water, you need to conserve and ensure no one is wasting. If you can, invest in solar power as this will save you money over time.
Final thoughts
These tips should help you to save money and avoid waste. You do not have to go without any treats but if you cut back on a few wasteful spending habits and manage your money and expenses well, you will have less stress and more money. This will allow you to save and enjoy some of the good things in life.
Spend some time looking at your spending habits and workout where you can cut back. You won’t regret it.
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