8 INCREDIBLY EASY TIPS TO SAVE MONEY

Cutting costs is never easy, but every new year is a good time to try again. Here are some painless ideas for trimming the budget and a few challenges to improve your money managing skills.

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What is your big goal with money? For most of us it would be to spend less so we can stop worrying about bills, maybe save a little and have something left over for fun.

It can be done, but not by making dramatic decisions such as cancelling insurance that might cost you in the long run. Small changes are easier to make and add up quickly. Soon, you may be saving more than expected without feeling like you’re depriving yourself or missing out.

See which of these ideas fit your style and try to make them your new good money habits.

1. SIMPLE DIVISION
One of the easiest budgeting methods is the 50/30/20 method. Divide your earnings into three batches: the 50 percent is for living expenses such as rent, electricity and food. The 20 percent is for savings and the remaining 30 percent is yours to spend. If you overspend on any of these, you’ll know where to cut.

2. PAY OFF, PAY LESS
Many people only make the minimum payment on debts each month. That means you're just paying off interest, not what you actually owe. You’d be surprised how much interest you pay if you carry a balance on a credit card, for instance. Pay off a little more to chip away at the real debt.

Related article: 5 Easy ways to cut costs and save more!

3. BE SURE ABOUT INSURANCE
Once you have insurance, you probably don’t check it regularly. It’s wise to look at your policy every six months. See if you’re paying for anything you don’t need or have anymore, such as your old phone (or car!). Or look at other offers – there might be better deals than the one you have.

4. SHOP ONCE PER WEEK
The more often you go to the grocery store, the more chances you have to buy things you don’t need. Try to go once with a proper shopping list and stick to it.

5. SHOP THE SEASON
Fresh veg often has a sticker that says “in season”. Look out for those. It means you're buying local and therefore paying less. Following this seasonal cycle is also a handy way to get variety in your diet. And the food will be fresher.

Get a rewards card from all your regular food shops. Usually, there is an additional discount for card members.



6. CHECK PRICES
One of the misleading stickers you’ll see in shops is "Buy bulk and save”. Do the maths. See if the kilo bag actually costs less than two bags of 500 g. It might not. Don’t buy the veg chopped or picked “for your convenience”. It’s really not that much work to chop up a whole head of broccoli into heads yourself. Why pay more for someone else to do it?

7. SAVE ENERGY
A cheap bulb or battery is just that – cheap. Rechargeable batteries cost more upfront but can last for years. Energy-efficient bulbs use less energy even if they might cost a bit more. Look for deals to make it even more of a bargain.

8. FIND SIMPLE PLEASURES
When last did you check out things to do for free in your neighbourhood or town? You’d be surprised how much family fun you can have without paying a cent. A holiday at home can be fun with visits to parks or museums on free days, time at a beach or lake or just playing a garden game in the sun outside. If your health plan or insurance offers discounts on things such as movie tickets, sign up and score.

9. GIVE YOURSELF POCKET MONEY
Your willpower will fade if you just put away savings without deciding what for. Decide how much of your savings will go to which goal. Choose at the start of each week or month how much money you can use for fun things or pampering. Just stay within the budget.



Related article: Where is my money going?

CHALLENGES TO HELP YOU SAVE MONEY
Here are three novel ideas that take a bit more effort but can make a big difference. Up for the challenge?

THE ENVELOPE CHALLENGE
If you don’t get paid in cash, draw a set amount after payday and divide it into categories: bills, goods, entertainment, school stuff and so on. Put the amount for each in a separate envelope or bank bag and use only that for its purpose. When it’s done, it’s done. Soon, you’ll figure out how to make each envelope last until the next payday.

Start this the easy way by choosing one thing you know you spend too much on. Try to get through the month on the money in the envelope.

THE 52-WEEK SAVING CHALLENGE
You might think you can't afford to save but try this. Commit for a year to put away something every week. Start with a small amount, say R5, for the first week. Double it the next week and double again the week after. Come the festive season, you’ll have a handy little reserve set aside.

NO-SPEND CHALLENGE
Instead of looking at your spending over a set time, pick a day of no spending. Nothing, except of course for regular bills and emergencies. Take what you save from this and put it in a savings account.

STASH YOUR CASH
If you save cash, keep it in a safe place and out of sight (to avoid temptations). If it’s digital, transfer the savings to a different account. Obviously, you can use it for an emergency like an unexpected doctor’s bill, but not for something you don’t really need.

Related article: Stretch your salary

The key to success with all of these isn’t just willpower. It’s building good habits. Once you start doing it automatically, you’re well away.

Sources: https://takechargeofyourmoney.blog, https://joywallet.com, https://www.definefinancial.com, https://wgntv.com, https://www.investopedia.com, https://www.forbes.com