6 Tips to Help You Save Money

Simon Mwangi

Everybody wants to save money. It’s hard when things cost so much these days, but there are a lot of ways you can save on money when shopping. These six tips might help you out.

1. Make a list of your must-have monthly expenses

You should know your fixed monthly expenses before you shop so that you won’t buy the stuff you don’t really need and blow your money on something that has no value. Write down all of the essentials like rent/mortgage, utility bills, food, gas, and insurance payments on a piece of paper. You should also factor in non-essentials like eating out, entertainment, gifts, and clothes.

2. MakeLimit the necessary expenses

Set a spending limit for each category so that you won’t end up going overboard. For instance, if you want to buy something expensive like a new TV or sound system, ask yourself is it really worth your time and money? I think it’s important to own it; consider putting off the purchase until you have adequate money (preferably in cash).

3. Avoid compulsive spending

Learn to avoid spending money on small things that don’t really matter. These include impulse buying, gift-giving, and eating out. If you are trying to save money, resist the temptation of buying a new phone or computer for yourself simply because the last one broke down. Think about how much money you are willing to spend to know what you can and cannot buy.

4. Increase your income

Try to find a way to bring in some extra cash by getting a second job or more hours from your current one. This will help you save up for something big that’s been on your wish list without having to spend money on unnecessary things. It’s better to get paid under the table so that it doesn’t affect your regular income.

5. Set financial goals

You should be able to answer the question “Why do I want to save money?” before you start saving. You need to have a defined goal in mind so that you know what you’re working towards. You can also set monthly savings goals based on your income and expenses.

6. Open a term account

Try to spend money wisely by opening a term savings account and putting in some extra cash. A term deposit will allow you to save for something special down the road while earning some interest at the same time. Once you get your goal, you can withdraw all of the money without any penalties so that you can buy what you want with it.

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As a freelance writer with a background in banking and accounting, Simon has the financial know-how to produce quality content on various topics. His experience gives him a strong foundation in understanding complex financial concepts and communicating them in an easy-to-understand way.