If you want to save up a nice nest egg for retirement, build capital for a small business, or save up for emergencies, or stash enough cash away for great vacations in the future, you need to know how to save right. You need to start now. Adopt the six habits below to turbo charge your savings.
Always pay in cash
The most successful savers have the mentality that if they can’t pay for something in cash, they can’t afford the item they are trying to buy. Paying in cash keeps you away from debt, and this can help you save more because your extra cash goes to savings instead of paying off credit cards.
When you pay in plastic you don’t feel as if you’re spending the money, so it’s easier to buy more stuff. When paying with cash, you can only spend what you carry on you and not a penny more.
Avoid buying on impulse
The most successful savers aren’t immune from the urge to buy on impulse. What sets them apart from their credit card-happy spendthrift buddies is that they are able to resist the urge by asking themselves a wide barrage of questions that kills the impulse.
Next time you see some goodies you just need to buy immediately, you need to ask yourself how long it will take to pay off the debt you incur for the item. Ask yourself how much interest it will take to pay off and how much harder you need to work. Ask yourself if the purchase will open the door to more similar purchases and how will this impact your overall financial picture. Keep asking questions and you will find that the impulse will go away.
Buy only what you need
At some point in time, people’s”wants” become their “needs”. Resist this temptation. Focus solely on what you need to live. This doesn’t mean totally denying yourself and living like a pauper. It only means that you buy and enjoy stuff that is of decent quality, and you don’t feel deprived. Aim to live a decent and happy life, not a life of luxury. If you do you’ll start saving quite a bit of money.
Unplug your appliances
Did you know that your appliances suck up energy, even if they are turned off? In fact, this is the number one power drain on most households. Turn off your appliances when you are not using them. This is especially true of that big high definition television in your living room. If you’re going away for a 1 week vacation it’s important to unplug everything except the fridge.
Always be on the lookout for odd jobs and favors
People are always looking for people to do small favors or jobs for them. Instead of getting formal help, they ask around. Ask your social network and see if you can do odd jobs or favors for your friends. You’re not going to get rich off of this, but you will get paid. By doing these things, you can turn your spare time into spare cash. This can add up to a nice boost for your savings account.
Always compare prices online
Next time you head out to a department store, always scan the prices and see if you can get a better deal online. You can use money saving apps on your smartphone to compare prices. For example, use the ShopSavvy app on your smartphone to scan the barcode and compare prices on the spot. You can also use a coupon app like the popular Retail Me Not app so you can knock even more off the prices.