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Simple ways to help you save money effectively

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Written by   299
4 months ago
Topics: Saving, Finance

We all have the tendency to spend money on things we don't really need. But the truth is, saving money can help you live a comfortable life in many ways. Saving money and making a plan for how you want to do so can be hard sometimes, but it can also be fun when you know how to do it right.

Saving money is important for many reasons. You can use your savings to pay for things you need, like a car or a house, or a new laptop (which is my current goal), or you can invest the money so that it grows over time. Either way, saving money helps ensure that you have the resources you need in case of emergencies.

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But saving money isn't always easy; some people don't know where to start, and even if they do, they might not think saving money is important enough to take the first step. It's true: saving money isn't difficult but it does take some effort on your part. Here are some of the tips I use to save money effectively

1. Set Goals

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First and foremost, setting goals is essential for anyone who wants to save money. Think about what kind of lifestyle you want for yourself and then set some realistic goals for achieving that dream. Setting goals might sound like it isn't doing much when it comes to saving money but trust me when I saw it makes a lot of difference when you have realistic goals.

It's very easy to lose track of your spending when you don't have any goals you are working towards achieving. I realized that months ago when I end up spending all my savings from last year without even realizing it. But right now, I have set up a goal of buying a new laptop, and every day I remind myself of that goal and it has helped me to cut down on unnecessary spending.

2. Plan your finances

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Most people are too busy running around and doing things to really plan their finances. This is okay! But it's important to plan ahead and make sure that you have enough money in your bank account to cover your expenses for the next few months

Make a list of all your expenses for each month and compare them with what others in your household spend on similar items so that you can see where savings can happen easily (think: buying generic instead of name-brand). This will help teach yourself budgeting skills early on so that when the time comes around again next time, things will come more naturally!

A budget can help you stay organized and focused on spending less than what you earn each month, but it can also help you prioritize the things that matter most to you. This is a very important thing to take into consideration when planning your finances.

3. Buy in Bulk

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A lot of people don't realize this but buying in bulk is one of the most cost-effective ways to save money on everyday items like food and toiletries. You might think it's the same expense as buying things singly but when you sit down and do the calculation, you will realize buying in bulk is a lot cheaper.

What usually throws most people off when it comes to buying in bulk is the "higher" price, but is it really higher? Take for example a family that uses 2 cans of milk every morning that costs $40 total ($20 each) but the pack of that same milk costs $550 and it contains 30 cans. In a month (let's assume 30 days), they end up using 60 cans of milk and the total is $1200.

But, what if they bought packs instead? In a month, they will use 2 packs of milk and the total is $1100! They end up saving $100 every month just by buying in bulk, instead of buying singly. Within a year, they would have saved $1200 and that's for only milk, what about other food items and even toiletries? It might look easier to bring out $40 every morning instead of coughing up $1100 all at once, but it's better this way in the long run.

4. Invest in yourself

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One of the most important things you can do to save money is to invest in yourself. By doing things like taking classes or learning new skills, you will be able to make more money in the future and it will help you grow as a person. And when I say "invest," I mean it literally; you should put your money where your mouth is and spend on things that will make you grow as a person.

Earlier, I made mention that I am planning on buying a new laptop, that's my way of investing in myself. I am currently learning programming and that's what the new laptop is meant for: it will make my programming journey easier. In the future, the skills I am acquiring now will be very useful when I start monetizing them. It's like investing in a coin and taking back your profits when it starts pumping; it's just a matter of time.

5. Eat Out Less Often

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Eating out can be expensive and if you're eating out several times a week, it will take a long time before your savings add up! Instead, try planning ahead and eating out less often, always cook your own food at home. This was was a bad habit I had in the university; I often eat outside a lot and I only cook at home once or twice a week.

It might not be very obvious but eating out is a lot more expensive than cooking at home. As a test, you can try comparing the expenses of eating out for a week and the expenses of cooking at home, there might be a slight difference (it mostly depends on the standard of living in your city) but you will realize that cooking at home is cheaper.

Other tips that can make saving easier:

  • Don't overspend on things like clothes or entertainment (but also don't be too stingy).

  • Shop around for the best deals when buying things online, especially when shopping for electronics or appliances.

  • Reduce or eliminate cable TV service and other subscriptions that aren't needed anymore (for example, Netflix)

Conclusion

Saving money does not need to be complicated. It helps to think of saving as a habit, a series of actions that you repeat day after day and that eventually add up to something more. I'm curious to hear how you're saving money in your life. Is there a tactic or strategy that's working particularly well for you? Or are you struggling to find the motivation necessary to save? If so, I would love to hear about them. Please, tell me about your tips in the comment section.

Thanks for reading 💖💖💖

Saturday August 6th, 2022

*Original content first published on hive

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Written by   299
4 months ago
Topics: Saving, Finance
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Comments

I don't have anything I'm saving for so I can't say I'm currently saving.

But one thing you mentioned that many people in our country don't do is bulk buying. Especially the average Nigerian; they feel bulk buying is for the rich but it actually helps anyone

$ 0.01
4 months ago

Exactly bro. I see people around me buying things in small quantities and I wonder why they haven't sat down to calculate how much they can save from buying in bulk. I won't say I blame them sha, not everyone can have the money to buy things in bulk, especially people that are receiving low salary every month

$ 0.01
4 months ago

It is really hard for low salary earners to do bulk buying, especially with the inflation in the country

$ 0.00
4 months ago

Just like they say, spend within your means. Nowadays saving a small amount day by day is a big impact already. Because everything now is so expensive so we need to save and spend wisely.

$ 0.01
4 months ago

Exactly ma'am, we should always try and save, no matter how small it is. Those small savings will amount to something big in the future

$ 0.00
4 months ago

These are fantastic tips Kushy. And I can attest to most of them especially the last one :)

$ 0.01
4 months ago

You can never go wrong with that last one 😁 it works well for me

$ 0.00
4 months ago

With piling responsibilities, they shouldn't even tell someone about the importance of savings 😂😂🤣🤣. Setting goal is important. When you have a project ahead which you are committed to, it becomes easier to save towards it and it naturally cuts down some excesses because we have a goal ahead and a target to meet.

$ 0.01
4 months ago

Having a goal you're striving hard to achieve will help saving much easier because all your attention will be channeled into actualizing that goal, that's something I have personally experienced

$ 0.01
4 months ago

Absolutely. When I know how much I am paying in Rent here in Lagos, no one would tell me to save and that still doesn't stop other expenses o 😂😂🤣😂😂. Saving is important.

$ 0.00
4 months ago

Thank you for this! A very beneficial article especially for me because I find some hard time in saving money. I will take note of this.

$ 0.01
4 months ago

Some of the tips I talked about here can help you save money effectively, you just have to be disciplined enough to do it 😊

$ 0.00
4 months ago

Being a shoppaholic is truly my problem leading me of always thinking to save. But then I always opt to save even a small amount because I greatly believe that every small earnings I save would become more in the future. And as of the moment I am also investing so my money would not just sleep on my bank but as well as having some profits for the future. Thanks for the good reminders about essential things in life kush.

$ 0.01
4 months ago

You're welcome Porsche 😊 saving should never be underestimated because the little money we are saving everyday will become huge in the future and can save us from a financial mess

$ 0.00
4 months ago

This are what I exactly do after I received my salary every week,I only buy things and foods which very essential for my family and have a little savings from it

$ 0.01
4 months ago

That's usually the best way to manage our finance, it's best to buy things that are essential first before looking into things that aren't too important

$ 0.00
4 months ago