What you’ll think if I told you that you can save dollars without doing anything or without making any frugal plan? I guess you will be shocked or assume that I’m just kidding?
When you fall in debt, it’s hard to get rid of it. So, it’s better if you can save enough money to pay off your debts easily.
It was easy to learn about the conventional ways to save money by reading tutorials, or by following online videos, TV shows, or from Ebooks. But how about saving money without doing nothing, is there any way?
After a lot of research and discussion with my friends, I have found few ways to save dollars doing nothing or without any frugal plan. Let’s check them out guys.
Everybody should hate drinking and smoking. Actually it is ridiculous spending $120 on liquor or cigarettes. They actually have zero health benefits. Additionally, the cost of alcohol or cigarettes is high. There’s no meaning of converting your hard earned money into ashes.
Healthwise, both nicotine and alcohol can make you sick. Cigarettes causes lung cancer and alcohol may damage your liver.
The average cost of cigarettes are between $6 and $8. Expensive ones cost around $12.85. Recently, Mayor Bill de Blasio in New York announced that the cost of cigarettes will be increased to $13 from $10, each pack. So, if you are a chain smoker, then your total monthly expense will be sky high. Check out the price of cigarettes state-by-state and compare the prices. It’s better just quit smoking…you know.
Never trust a person who is into drugs; even in vacations. Drugs have dragged too many people into living hell. Drugs not only affect your health and finances, but also demolished your family life. You’ll become isolated from your family, friends, even from society.
The drug is an addiction. Stay away from people who used to have recreational drugs. Selling and buying drugs is an illegal offence. So, avoid drugs at any cost.
We, humans are selfish, greedy and unsatisfied in every aspect. They pine for costly things which they don’t even require. People want fast cars, want to watch latest movies, want to wear the trendiest fashion, use the latest sound system, play latest video games, etc. What we fail to understand that these are only waste of money, nothing more.
If you want to save money, then stop pining for the greatest things. You can buy a good conditioned used car, a second hand music system may also give you the same experience. You can play free online video games. You can read free eBooks. You can watch latest movies later online, totally free. It’s that easy.
Don’t forget one thing, the more you eat, the more you pay. Junk foods not only make you fatter, but also drain your savings. It is tough to ignore delicious burgers, pizzas, french fries, ice cream, cookies, and hot dogs. But you must draw a line.
Start avoiding junk foods for a month. You’ll be surprised that your body and wallet, both will become healthy..
Drive safely and obey traffic rules. It will help you to save a good amount on auto insurance premiums. The lower your premium, the lower will be your car maintenance cost. Accidents not only can ruin your life, but it can cause fatal damage to someone else.
Sometimes the difficult thing of money saving habit is just how you can start the habit itself. It is really very difficult to find out easy ways to save money and how you can use your savings to reach your financial goals. So, let’s discuss few basic tips that can help you to develop a realistic money savings habit.
The first step would be figuring out the amount of your spending. Keep track of all your expenses. This may include the cost of newspaper, coffee/snacks, etc. After getting the data, categorize them according to their total amount. You can use your credit card or bank statements as reference.
Once you have the idea of your monthly spending limit, you can execute a budget and try to fit your expenses into it. Apart from your monthly expenses, you must also consider expenses that occur often but not regularly. These may include car maintenance cost, home renovation, etc.
After planning the budget, try to put away 10–15 % of your income as savings. If you save money every day as well as reduce your fixed monthly expenses, very soon you’ll be able to build up a good saving habit.
Try to set a goal. You need a specific target for which you’ll cut off expenses and save money. Figure out how much time you need to save for it. If you need help figuring out a time frame.
These are some examples of short- and long-term goals:
Short-term (1–3 years)
Long-term (4+ years)
If you’re saving money for your child’s higher education and your retirement fund, then you may invest your money in IRA or a 529 plan. These investments might come come with risks but they also give you good, compounded returns if you plan properly.
Almost all banks offer automated transfers between your checking and savings accounts. You should decide the time, the amount , and the account where you’ll transfer the money to. You can also divide your income between your checking and savings accounts. Automated transfers are a great way today to save money as you don’t have to twice about separating money into two accounts manually.
Check your progress every month. Keep eyes on your checking and savings account. This will not only help you to stick to your savings plan but it also helps you identify and fix problems quickly.
These easy tips to save money will be very helpful to you and will inspire you to build a good money saving habit.
Twenties is the right time to practice good financial habits. Because, at this age every one should prioritize their finance in order to make a smooth financial life. If you’ve a habit of spending more than what you earn, it would be really difficult for you to fight with debt. The major reason that people incur debt is because they don’t know how to live within their means. If you have a couple of credit cards in your hand and indulge into heavy shopping without thinking about future consequences, then you’re in trouble. Once you fall in debt, you’ll realize how difficult it is to get rid of it. It is better that you start building new habits to become a money saver. My article can give you some suggestions.
Financial habits you can build in your 20s
Here are the 11 habits that can help you stay financially independent not only in your 20s but throughout your life.
1. Set up a goal
You should have some reasons to save money. Think what do you want? A home, financial independence, getting rid of your student loan debt . Take your first step and achieve one by one. Your desire will inspire you to save money and thus you can build a good money habits as well.
2. Give yourself a deadline
Always fix a date by which you can meet your goal. This will give you a push to save money. Think about your goal once a day. Thus, you can avoid big expenses and stay within your budget.
3. Create budget and modify accordingly
Budgeting helps you spend less than what you earn. This helps you to save more as well. As you expend less and save more, you incur less debts and even if you do incur some, you’ll have the money to pay those off. You’ll have to make a list of your income and your expenditures in order to create a budget . A budgeting calculator can help you prepare your budget. If required, you’ll have to analyze and also modify the budget from time to time as per the changes in your income and your expenditures.
4. List items of your requirement
At the beginning of every week you should list the names of items you would require throughout the week. This list should only include items of necessity and not luxury. You should then visit the mall once a week to buy things you’ve written down in that list. You should remember to carry the list with whenever you go for shopping.
5. Use cash for shopping as much possible
One of the major reasons why young people get into debts is credit cards. When you’ve a credit card in your hand, you can barely resist the temptation of buying anything that catches your fancy without thinking whether or not you at all need it. Instead if you use cash for purchasing, you would not be able to spend much even if you want. This is because you cannot carry too much cash always.
6. Stay within your means
You’ll have to change your style of expenditure in order to save money. That is, you’ll have to become more disciplined and lower your expenditures as much as possible. In addition, lower the usage of credit cards as these incur higher debts.
7. Make a habit of using coupons
Coupons are a great way of saving money. You can collect coupons from newspapers, magazines and even some websites which allow you to download free coupons. Thus, you can use these coupons to buy items on discount. Talk to your parents or elderly persons to get some information about couponing.
8. Make your own food always
Eating out, ordering food or buying lunch can make your pocket considerably lighter. It is better you skip eating out except for those very rare occasions when you want to go for dinner in a restaurant to celebrate anything. You should also carry brown paper bag to office so that you don’t need to buy food.
9. Set up an automatic savings account
Set up an automatic savings account to avoid spending money on something else. You can ask your employer to directly deposit a certain amount of money from your salary into the savings account. Pay yourself before paying others. Start small with just 1%-2% of your salary. Once it becomes a habit, you’ll see how fast your money grows.
10. Fight with debt
You should work on your financial obligations as soon as possible. The sooner you pay off your debts, the quicker you can start saving money. Try to pay the high interest debts first. Try to fix your credit card and student loan debts now.
11. Give priority to your career
Take your job seriously because your profession will give you a smooth financial life at the age of 30. A good job is always a steady source of income. Work hard and acquire advanced skills in order to stay financially secure in the long run.
Try to learn more about banking, investing, handling finances and so on. Read journals and financial magazines. Visit good personal finance websites and follow financial market on TV channels. These all are good habits you can build in your 20s. Thus, you can discover your own ways to deal with money as well.
Hi folks… This is the continuation of the last post of mine. Hope you’ll enjoy these one also.
Search new ideas to increase net worth – You can try new ways to grow your net worth. You can lower your debt, you can grow your savings or develop your income capacity, whatever you want to do. Always find new ideas for growth of income. As soon as you can see increase in your net worth, you’ll be boosted to work more hard than ever.
You need to develop good financial habits to achieve any goal. Similarly, if you want to gain financial stability and total success in your life, you must also need to work hard to grow constructive habits. As we all know, bad financial habits can make your financial life miserable, similarly good financial habits can also make your finances grow more than ever. So, let’s have a list of some common good financial habits which we can implement in our daily life.
Here goes the list in no particular order:
To be continued…