Considering the struggle nowadays, most of us have a hard time when it comes to saving money, over the next few moments we will introduce you to some simple but overlooked tips that are guaranteed to have you saving in no time.
The vast majority of people tend to believe that they’re in control of the financial side of life but guess what? If you guessed right you would realize by now that most of those people are completely wrong.
We often feel an urge to spend whatever we earn and what we don’t, this regularly comes in the form of debt, we’re humans, therefore we feel the need to be rewarded after witnessing our life getting buried at work every day, month after month.
On top of this, not a day goes by without the self-thought of dreams against accomplishment, every human being that does not feel fulfilled goes through this.
The truth is that ever since technology evolved in such a way that allows your cravings to be one click or swipe away the concept of spending money became less of a conscious choice and more of an automated one.
Here are 5 essential tips on how to save money:
1. Buy only what you can afford
This is a no brainer, right? Wrong!
Let’s say you want to buy a 500$ item and you have 550$ sitting in your account with no purpose, the logical step would be to just buy it and you technically can, however, we suggest you to establish a simple rule on spending wisely and it consists of saving at least double the amount, ideally the triple of the amount you’re investing, it’s worth nothing owning or bragging about any material goods if after purchasing you’re forced to downgrade your lifestyle.
If you apply this rule not only you’ll have an emergency fund for any casualty life throws at you but you’ll also have the time to look at your intended purchase from a cold-minded perspective which brings us to the next tip.
2. Make sure you need what you’re about to buy
How many times have you bought something you thought you needed but in reality you really didn’t?
It’s essential to allow some time to sit in between your cravings and the action you take towards them, the last thing you need is a guilty consciousness that will make you lose your precious time returning or selling any acquired goods, besides the mental strain you’ll also have to deal with a financial loss due to natural depreciation.
3. Don’t lend money to your friends
If you’re frequently among people who ask something from you which will bring no return or value to your life you should start asking for something in return or gravitating elsewhere as far as personal “favors” go, this is a very easily overlooked tip but a precious one.
The moment you start feeling your relationship with the people who surround you to be one-sided you should start making yourself known to people who think like you and bring something new to the table, a friend that asks you for money or makes you spend it on a regular basis will bring no personal good to you and neither to your wallet over time, if you’re trapped in a position where you feel that you have to favor a friend, make sure that it’s worth your while.
Note that this applies to extreme cases, you shouldn’t worry about it unless you start feeling like it.
4. Change your mindset
If you find yourself in a financially leveraged position play your cards wisely and once again, do not rush the spending unless you’re struck by a bright idea to make your money grow.
Believe in yourself, invest time and thought in your ideas, overtime this will set you apart from the crowd, you know better now than a couple of minutes ago, all the big players had to start somewhere and the place where they are right now it’s nothing but a set of small but right choices that led to their current position.
5. Lock your credit card in a safe
There are two words that come to mind when we think of a credit card, the first one is debt and the second one is also debt.
If you’re unfamiliar with finances, enjoy living on the edge, or are currently struggling to pay your bills don’t touch your credit card without a little research first, in fact, you shouldn’t even have one in the first place.
It’s crucial to understand how credit cards work before swiping, to put it in a simple way, you’ll end up paying more than the market value of whatever you’re purchasing due to interest rates, on top of it, if you have an addictive personality you’re all set to a lifetime of debt trap.