Simple steps to save money 

There are two ways to achieve your financial dreams: by looking for ways to increase your income or simply by saving money.

And when we talk about saving money, it’s common for people to assume that it can’t be done simply.

But that’s not true.

Today we’re going to talk about some simple steps you can implement in your day-to-day life in order to save money.

Classifying expenses

Classifying expenses means recording all financial transactions and putting them into categories.

For example, all your spending at the supermarket should be placed in the “food” category.

On the other hand, if you go to the movies every month, you should put this expense in the “leisure” category.

Remember that you can also classify your sources of income.

You can divide it into categories such as main income, freelance work, rent, etc.

Going back to spending, you can use a simple rule to save money: 70/20/10.

In this rule, your expenses are divided into 3 categories.

And a certain percentage of your income is set aside specifically for each of them.

For example, 70% of your salary is used for essential expenses.

These include rent, electricity, condominium and supermarket bills, among others.

Secondly, 20% is used to invest in more profitable financial investments.

Finally,10% is used to investing as you see fit.

Reviewing habits to save money

To comply with the rule, we recommend that you review your habits.

By classifying your expenses, you know precisely how much you earn and how much you spend each month.

With this control, you understand exactly where your money is going and where you can reduce costs.

All of that, without having to give up what you like.

In this sense, it is essential to change daily habits in order to reduce spending.

Have you ever stopped to consider your subscriptions?

Perhaps you should subscribe to 5 streaming services, as well as have a pay-TV plan with 200 channels.

If you use 2 of the streaming services and the family watches 20 of the 200 channels, isn’t it time to cancel the service to save money?

Let’s suppose that when you analyze this question.

So, you decide to get rid of at least the 3 streaming services you don’t use.

By doing so, you save US$30 and you might think that’s a small amount.

But remember to think about the long term. In one year, the amount saved is US$360.

By saving this amount, you can pay for the annual plan of the 2 streaming services you’ve decided to keep.

This gives you a good discount.

So, keep in mind that no matter how little you save, it will always be more advantageous, especially when you think about the long term.

Credit card 

Many financial experts recommend that, even if you have a high limit, you should only use it when you have the money to pay for the purchase, in order to save money.

This is because if you commit next month’s salary to a credit card debt, what will you do if the unexpected happens?

If you don’t receive your full salary, how are you going to pay the card bill?

What about a family member has fallen ill?

The situation is even worse when you think about installments.

That’s because you don’t just have to pay next month’s salary.

In some cases, you’re committing part of your salary for up to a year.

This happens just because you’ve opted to pay for a product in installments.

To save money and protect yourself against future financial problems, use your card when you have cash.

That way, you’ll avoid any impulse purchases because you’ll have to take the money out of your pocket at the time.

Impulse purchases mess up your planning.

Basically, you don’t stick to your commitment to organize your finances, and don’t think if the purchase is really essential.

On the other hand, with cash purchases, you only buy when you have the necessary funds.

And you learn to have the patience to make a plan in order to save money and make the purchase at the right time.

We insist on talking about credit cards because more than half (61%) of Americans have credit card debt.

This information is from Clever survey.

To avoid being part of these statistics, you need to review your spending habits and learn to buy consciously.

Wish list

This can be done especially when you take into account the wish list strategy.

This type of list is not just for special occasions.

Acts as a shopping list for all areas of your life, not just the market.

This makes it easier for you to keep your spending under control and actually save money.

In a nutshell, the list is where you put all the things you want to buy.

Instead of simply deciding to take the family for a walk in the mall, going into a store and buying a product you don’t need, the wish list allows you to buy only what you need and make your dreams come true more quickly.

In the case of shopping, if you really like a product, instead of buying it, you add it to your list.

This gives you time to think about the purchase before you spend the money.

Also, note that you don’t need a complex system or a specific platform for this.

Your wish list can be structured in the notes on your cell phone or on a piece of paper.

Have fun and try to save money

According to a Bureau of Labor Statistics analysis of consumer spending, Americans spend $2,912 annually on entertainment costs ($243 a month).

Certainly, entertainment is a fundamental part of anyone’s life.

But what if half of this amount was applied to another area of your life?

Let’s suppose a person needs a new laptop to work from home.

By saving half the amount spent on entertainment, they would be able to buy the best laptop and still have money left over.

If this is your case, and you’ve noticed that you spend a considerable amount on entertainment, we’d like to show you that:

You don’t have to stop having fun, you just have to take advantage of cheaper activities to save money.

For example, you can go to concerts and festivals in your city – just do a simple Google search, and you’ll find plenty of free options.

You can also invite friends to watch movies at your house or volunteer at an animal shelter.

Hiking, playing board games with your kids, drawing, painting, coloring and reading a good book, are also good activities.

Going on a picnic, helping out at a homeless shelter and go to the beach to watch the sunrise.

Finally, put together a puzzle, go for a bike ride around town, build something, go out dancing or visit a farmer’s market.

There are endless possibilities for activities that will allow you to have fun while prioritizing the idea of saving money.

Watch out for small expenses to save money

American families don’t spend almost US$3,000 on entertainment overnight.

As I said, the amount is spent over the course of the year.

So, in the first week, the family spends US$50.

In the second week only US$20, and in the third week US$15.

However, small expenses can become big villains in your financial life.

So you have to be very careful not to end the month with a negative balance due to small unforeseen expenses.

To do this, learn to say no.

If your group of friends calls you out every week, and you’re embarrassed to say you’re short of cash, your financial situation will get worse.

Learning to say no will help you get rid of countless expenses that are detrimental to your financial life, as well as help you save money.

And, of course, you have to learn to say no to yourself.

Who doesn’t like ordering a different kind of food by delivery, right?

As long as it doesn’t become a routine, that’s fine. 

However, you have to be careful not to overdo it and end up spending more than planned on this type of expense.

Opt for the cheapest, trying to make your favorite snack at home at least a few times a month.

Still on the subject of small expenses, take a look at how much money you spend each month on private transportation services.

Although it’s more convenient, for every US$10 and US$15 you spend on this type of transportation.

At the end of the month the total can be US$150 or even more.

So try to review your spending and swap private transportation services for walking to work, cycling or even taking public transport.

Do it yourself to save money

D.I.Y. is the method of building, modifying and repairing things without the help of professionals.

We’re not used to some of the facilities of everyday life, so the first option that comes to mind is to outsource tasks that we can do ourselves.

Of course, there are exceptions and, in these cases, you need a professional.

But lose the habit of calling in a helper to clean your house, iron your clothes or even change a light bulb.

Do it in your spare time and save a lot of money.

Pay your bills on time to save money

Don’t let lack of memory get the better of you, organize your finances with a spreadsheet or schedule the days of each fixed expense.

This way, you’ll avoid bills being late and having to pay interest or fines in the future.

Saving money in the market

The average family in America spends around US$270.21 at the supermarket each week, according to a HelpAdvisor study that analyzed the US Census Bureau’s Household Pulse Survey.  

For families with children, the amount is even higher: US$331.94 per week.

Therefore, the amount spent is 41% more when compared to families without children.

In both cases, the costs are high and, as in the case of entertainment activities, it is possible to save money on the market.

To do this, the first step is to plan the week’s menu and a shopping list.

That way, when you’re at the market, you’ll know exactly what to buy, and you’ll avoid buying products on impulse.

Another good thing about having a shopping list is that it reduces the time you spend shopping.

But you might think: structuring a shopping list takes a lot of time.

Actually, it doesn’t!

As soon as you notice that certain products are missing, you can add them to the shopping list, so that when the day comes to go to the market, you already have the list ready.

Secondly, we recommend that you check the prices at the checkout to save money.

It’s common to pick up a product on the shelf at a certain price, but when you go through the checkout, it turns out to be a different price.

In some cases, the difference is just a few cents, but if this often happens, you could leave a lot of dollars in the market each week you shop.

Other tips

Also, keep an eye out for promotions to save money.

Among the most famous are the “take 3, pay 2” deals or those that combine more than one product in the same package.

But before you buy, it’s essential that you consider whether you really need the products.

Even pay attention to the expiration date, as low prices come with a closer expiration date.

Another tip for saving money is not to shop while hungry.

You’ve probably heard this tip a thousand times, but why do you insist on not following it?

When you go to the supermarket on an empty stomach, you end up picking products that weren’t on the list and fall prey to the temptation of bringing home treats, so beware!

On the other hand, avoid buying perishable products monthly to save money.

Although you will have to invest more time in going to the market every week, this is an interesting strategy because you can save more.

Items such as vegetables, fruit and meat undergo constant price changes.

They also have a shorter shelf life, making it ideal to buy them every week.

More frequent visits to the supermarket also allow you to keep abreast of promotions and offers for the day or week.

Children also go to the market

And despite what many people think, you don’t have to leave the kids at home to save money at the supermarket.

Talk to your children about the week’s menu and show them the shopping list.

Before you even leave the house, make an agreement that each person will only choose one extra product to take home and set a limit on the amount.

Teaching children to take better care of their money is a great way to help them grow up more aware and responsible.

As well as helping to look after the family budget, your children can also learn from an early age about the importance of valuing what you have in your pocket and taking advantage of the best opportunities

So the final tip for saving money is to involve your family and always seek information.

Let’s think about a couple with one adult child and two more children, who dream of owning their own home.

Everyone must be involved if the goal of buying a house is to be achieved.

In this sense, financial education should be part of the family’s discussions.

When everyone shares the goal, it’s easier to keep them engaged.

By making everything clear to their children, the couple will not only be teaching them about valuable financial concepts, but will also make them understand that there are priorities in life and not that their parents are tight-fisted.

Daniel 2 de April de 2024