20 helpful tips to save money for different goals
Finding the best ways to save each month will get you significantly closer to your goals. The hardest part? Take the first step. With the right strategies and advice for you, saving will become a habit rather than a commitment. Read on and discover some tips to save each month, thus improving the management of your savings starting today.
One thing is certain: how appropriate it is to set aside depends on your lifestyle. But saving is also a question of mentality. Now, to make sure the approach stays consistent, you need to choose savings habits that don’t force you to sacrifice everything you love. Read down below and find out how to save money for different goals.
How to save money fast
Learn to plan and understand your finances
The best way to save fast is to learn how to set and stick to a budget. If you have control over your expenses, you also have full control over your finances. Financial independence is essential if you want to achieve both your short and long term savings goals. Measure your progress regularly and make adjustments if necessary. It may seem like a daunting task, but there are tons of apps available to help you keep your budget under control effortlessly.
Pay off debts
Before you can start saving, you will need to pay off any outstanding debt. The more you postpone paying your debts, the more interest accumulates over time. All the money you put aside may just be enough to cover the amount you have to pay back. This means that paying off your debts is a priority before you can think about saving for something else.
Use an ad hoc account for your savings
To save quickly, you need to separate the money you spend on your current expenses from what you want to save. To do this, all you need is a separate savings account. This way you can minimize the risk of tapping into your savings funds for daily expenses. On the contrary, it is an extra motivation to stay in line with your daily budget by keeping your savings away from temptation!
Automate your savings
If you have a steady income, try automating the amount to set aside each month. This means setting up an automatic monthly transfer to your savings account. By automating your savings, you further reduce the chance of them accidentally ending up in your current expenses.
How to save money on groceries
Make a detailed shopping list
At the beginning of the week it is advisable to monitor the pantry and the fridge, write down what is missing and should be repurchased; it is good to draw up a detailed list of what you really need, so you have the option not to buy what happens to avoid unnecessary waste.
Don’t shop on an empty stomach
It will no longer be a conscious and meditated purchase based on your real needs, but it will be on impulse; you will be so overwhelmed with the desire to have snacks that you don’t need, which are expensive, unhealthy. Shopping “head” and not “belly” is instead essential.
Prefer markets to supermarkets
Look for the neighborhood markets and the farmer’s markets and go there, you will find different varieties and fresh, seasonal and local products. If you can, go shopping directly at the farmhouse, you will save the surcharge linked to distribution and you will gain in freshness and quality.
Read the labels
To select the best quality products without getting entangled by special offers, pay 2-and-get-3 and find yourself with razor blades you don’t need! Don’t give in to the calls of slogans or advertisements you’ve seen on TV. They are bad counselors and will not save you.
How to save money each month
Establish a spending plan for each week or each month
This is about having a document in which you define a plan to spend your money each month (or each week). The goal is to spend your money on the things that matter most to you, whether it’s your home, clothes, or other products. This way, you don’t have to spend it haphazardly and you’ll have a small reserve in case you need money quickly. Be careful, it is not a question of not making you happy anymore. This approach is a way of teaching you to spend consciously and according to your medium and long-term objectives.
Start by asking yourself “why?”
This advice comes to us from Simon Sinek’s book, which urges its readers to take action by analyzing the greatest leaders of this world. We therefore advise you to define your “why”, to clearly define the reason(s) that lead you to want to save. Indeed, without knowing clearly why you want to save, you risk being frustrated when putting money into a savings account instead of consuming. Concretely, you may have to ask yourself this type of question when you want to save: Why refuse an evening with friends just to put some money aside?
Build up savings
When you are not used to it, saving seems difficult or even impossible. Indeed, it is less obvious to save at the end of the month while waiting to see “what is left”, especially in the event of a difficult end of the month. A simple way applied by all investors is to pay themselves first. This involves directly saving part of your salary as soon as you are paid. This transfer can be scheduled from the first week of each month. And this, before paying all your expenses such as energy or water bills, shopping, pleasure purchases, etc. For this, you can set up an automatic transfer of an amount each month. It would be like levying a tax at source but for yourself.
Reduce your shopping budget by planning your meals
Meal planning saves a considerable amount. The shopping list clearly helps to avoid impulsive, unnecessary and bad for your health purchases. Homemade meals are more affordable and more balanced. In the same idea, reduce your consumption of soda and other soft drinks or fruit juices, in favor of water. Indeed, water bottle packs are really cheaper than other drinks. Plus, water is better for your health!
How to save more money
Schedule your bill payments
Note that you can also schedule the payment of your invoices. Companies often charge late fees if you don’t pay them on time, so paying your bills before the deadline will help you avoid any additional charges.
Set your card spending limit
Want a great way to save money fast? Set a spending limit on your credit or debit cards. This will prevent you from overspending and encourage you to assess your daily purchases in advance. Many banks offer this service.
Save on your rent
Saving on rent is one of the fastest ways to save some money each month. If you live alone, one of the easiest ways to do this is to share a roommate. This will immediately cut your rent in half, and if you choose to live with two roommates, you’ll pay about a third of your current rent. So if you’re currently paying €1,300 per month for a three-bedroom apartment and you find a roommate, you’ll save €650 per month.
Cancel your unused subscriptions
Subscriptions like Netflix, HBO, Disney, are incredibly lucrative for many businesses because once customers sign up for their service, they’re less likely to cancel their subscription, even if they rarely use it. This is largely due to sunk cost bias. Applied to a subscription, sunk cost bias means that it is difficult to terminate a seldom-used subscription because you have already invested so much money.
How to save money on electric bill
Turn off standbys
Significant progress has been made to limit standby consumption: a European regulation limits standby power to 0.5 W for a certain number of devices. However, it remains 2 W for devices connected to the Internet or data networks. Turning off the standbys can save up to 10% of the electricity bill (excluding heating), but also preserve the equipment. Keeping audiovisual and computer equipment, cooking appliances and small household appliances (coffee maker, bread machine, etc.) on standby is not very useful. For washing machines and dishwashers, the watches are often used to detect water leaks and it is not wise to disconnect them.
LEDs, yes but not for decoration
LED lamps consume little electricity and last a long time (up to 40,000 hours), enough to compensate for their purchase price. They are the best home lighting solution, provided they last more than 20,000 hours and are rated well on the energy label. LED lamps allow you to play on the color of the light to create atmospheres adapted to different rooms (kitchen, living room, bedroom, etc.). Prefer warm whites of 2700 to 3500 Kelvin for the living room and bedrooms and opt for a more dynamic light in the kitchen or bathroom (3500 to 4500 Kelvin).
Don’t leave unnecessary lights on
Turn off the lights when leaving a room. Prefer light colors to decorate your interior (walls, floors, lampshades, etc.) because they reflect light better while dark colors absorb it. Place sofas, desks near windows and enjoy natural light as long as possible.
Do not systematically use the dryer
If you can, let your laundry air dry. Despite the progress made by manufacturers in recent years, the dryer remains an energy-intensive household appliance (about 200 kWh per year). Tip: to make your dryer run for less time, spin the laundry well in the drum of the washing machine. Mechanical moisture extraction is 100 times more economical than thermal extraction in the dryer.