Most of the time, the toughest thing about saving money is to get started. We might be knee-deep in debt, we might have even deduced the reasons which pushed us into this financial chaos, but we don’t have the courage and audacity to resolve to save money. While there are numerous pages online which advise us to save money and build our financial safe, how many of us actually follow them. It is actually difficult to figure out the simplest ways of saving money and how we can utilize our savings to pursue our financial goals. Here is a list of money saving hacks that you can follow in order to build a fat wallet.
- Keep a tab on your expenses: The best way to save money is to keep a tab on your expenses and know how much you’re actually spending. For a month, try to keep a record of everything that you’re spending on, which may include coffee, newspaper and every single pizza that you gulp out in the evening. Once you are ready with your data, you can easily organize the numbers, set them in categories like gas, mortgage payments, groceries and so on so that you may get the total amount.
- Follow a frugal budget: When it comes to money hacks, the list can’t be complete without this point. Now that you get a clear idea of the total amount that you spend in a month, you can build a frugal budget, curb your over-expenses and ensure that you put away some portion of your income in your emergency fund. Don’t forget to take into account those expenses which take place regularly but not in every month. Car repairing costs might be a good example.
- Make a plan to save money: You can’t start off with money saving unless you have a well-proof plan in your mind. Create a savings category in your budget so that you can allot at least 10-15% of your monthly income, irrespective of the amount that you make in a month. Look for places where you can reduce your expenses like dining out and entertainment costs. How about relocating to a new small home if you think that a major portion of your house is presently unused?
- Trigger off your high interest debts: A vital part of achieving success on your savings goal deals with triggering off your high interest debts. If you spend a major part of your income on paying off debts, this is simply wastage of your money. You might follow either the debt avalanche or the debt snowball method to pay off your debts on time so that you can use your dollars to save money and spend on necessities only.
Hence, if you’re desperately looking forward for the best money saving life hacks, you may follow the above mentioned tips. Follow your budget religiously so that you can stay within it and keep making changes according to changes to your financial behavior.