There are two ways to save money:
1. Savings – This is the physical act of putting money into a savings account, mutual fund or other type of investment.
2. Saving Money – This is the process of spending as little money as possible to get some of the things you want, and all of the things you need, hopefully with a bit left over to put into your savings.
Now that we’re clear on the two ways that “Simple Ways To Save Money” can be interpreted, let’s examine both:
The first thing you have to do is figure out how much you have to use in order to pay your most important bills (rent, food, car insurance, personal spending money…) – Then you need to find the right type of savings or investment plan to reach your goal. It might be helpful to speak to a financial adviser about this.
*Automatic Round -up…. Every-time you pay with your bank-card, you’ll have some change put into a savings account – You can sign up for this ‘Round-up’ program. It’s simple. Let’s say you spend $1.25 and pay with your ATM card, then your bank will automatically charge your card $2.00 even. The extra .75 cents is deposited into your savings account.
*Set up a standing order. This is great if you have direct deposit. You can set up an automatic withdrawal on payday and have this money deposited into a savings account, mutual fund or retirement account…
*Lump Sum Investment… You can invest all or part of your inheritance, tax return and/or financial aide money
You need to take a good look at how much money is coming in and how much is going out. Then you need to decide what areas of your financial life could use a bit of a trim:
*Housing – Can you afford to live in the house you’re currently living in? Is there anything you can do to reduce the cost of your monthly mortgage or rent? (Re-finance, get a room-mate…)
*Food – Can you change the way you eat in order to reduce your weekly food bill? Perhaps you can eat at home more often than you eat out? Maybe you could start shopping at a cheaper store? If you find yourself wasting food, maybe you’re buying too much each time you shop (sometimes buying in bulk does not save you money).
It may help to set up weekly menus, so that you only buy what you need for a set number of days.
*Insurance – Do you get quotes from several providers when it’s time to renew? You may save money on your insurance just by shopping around regularly (house, medical, dental and life insurance)
*Personal Debt – Are you able to pay off the balance on your credit cards and over-draft every month? If not, then you’re probably paying too much money in interest. You can get out of debt by placing yourself on a budget and focusing in on paying off your debts one at a time, starting with the smallest and/or the most expensive in terms of interest. However, any debt that may have a negative effect on your credit rating should go to the top of the pile if possible and workable.
These are only examples of some simple ways to save money. Since everyone’s situation is different, it’s important that you come up with a plan that works for your needs, your lifestyle and your future goals.