Wealth accumulation always starts with saving and who doesn’t want to be wealthy? Here are some tips on how you can save money properly in order to build wealth.
1. Pay Off and Avoid Debt
If you have debts, they will always be a burden. This is because the interest accrued on each debt will put pressure on your savings, hence, you will be saving less.
2. Open an Account That Bears Interest
You should make a point of opening a separate account for your savings so that your checking account won’t hold your savings. This is because there’s always a tendency to withdraw savings frequently when they are in the checking account since money is easily accessible. Instead, open an account that offers high yields in terms of interest.
3. Take Advantage of Customer Reward Programs and Loyalty Points
Many retail stores offer loyalty points to their customers. This is an incentive for the customers to keep on shopping at their store. The retail store rewards you for choosing to shop with them, hence, take advantage of these rewards. You can accumulate them and redeem them for cash or other benefits. This will enable you to spend less and thus save more.
4. Always Have a Shopping List
One of the greatest impediments to saving is impulse buying. People usually go shopping and end up making unplanned purchases. The secret to avoiding impulse buying is making a shopping list beforehand. This will enable you to buy only what you’ve written on the list and will also instill some shopping discipline in you. Writing down what you intend to buy will, in turn, help you save money that you would otherwise have spent on items that you don’t really need.
5. Avoid Fast Food
Fast food is one of the items that individuals spend an enormous amount of money on. In fact, it’s not cheap and is quite unhealthy, too. Instead, you can always find some simple replacements that are cheap but healthy.
6. Quit Smoking
Well, it’s said that habit is a second nature. You’d better form a habit of something useful rather than forming a habit that’s destructive and expensive too. Smoking tobacco is highly addictive and cigarettes are not cheap. So, make a resolution to stop smoking altogether for the sake of your health and for financial purposes too. If it proves too hard to stop altogether, then stop gradually or utilize the available anti-smoking aids.
7. Conserve Electricity
It can be expensive to be wasteful at times. When it’s day time, you have no business turning your lights on. When you leave a room or your house, turn the lights off. This will go a long way to saving money spent on electricity bills.
8. Maintain a High Standard of Hygiene
Washing your hands before eating, after visiting bathroom, or before handling raw foods might seem to be child talk but in essence, it will go a long way in helping you save on medical bills.
Carpooling is indeed a great way of saving. Instead of you and your neighbor taking both of your cars in order to go to the same place, why not go in the same car? This could help you save a lot, especially on gas, maintenance and also could reduce wear and tear of your cars.
Make a point of getting regular exercise. Go to the gym. Jog every morning and evening. Go for walks. This will improve your health drastically. Your health is your wealth.
11. Purchase Energy Efficient Utilities
Utility costs often drain your income. Make a point of purchasing appliances that are energy efficient. That will save you lots of money on utility bills.
12. Be On the Lookout for Yard and Boot Sales
Yard sales and boot sales are awesome places to get amazing deals. They have a reputation of selling items at bottom low prices. However, don’t buy what you don’t actually need on the basis of price. Instead, go with a list of things that you would like to purchase in order to eliminate impulse buying.
13. Avoid Credit Cards
If you cannot control your spending habits whenever your credit card is in your pocket, then, by all means, don’t carry it. Set a goal of quitting using credit cards altogether.
14. Try Second Hand Items
You can save a lot of money on items that are second hand. Make it a routine to get used items instead of new items. One of the items you can buy is clothes. They are readily available in pristine conditions.
15. Eat Home Cooked Meals
It’s cheaper to have a home-cooked meal as opposed to eating out. In fact, it’s much easier and much healthier to cook at home.
16. Get a Fuel Efficient Car
If you own a fuel guzzler then it’s time for you sell it and buy a fuel efficient car. This will save you an enormous amount of money on gas in the long run.
17. Find an Affordable Place to Live
One thing that many individuals don’t know is that rent is a recurrent expenditure. If you pay huge amounts in terms of rent, it’s high time that you realize the expense will always be there and, as a matter of fact, it will only rise. If you choose to live in a less expensive house then it will translate into less expenses and more savings.
18. Take Advantage of Free Events
Instead of going to paid events and spending huge amounts of money, why not try out free local events? You can use public utilities that are available in your local area such as parks, hiking places, sport courts and also public beaches. You can have a great time for absolutely no money.
19. Use Public Means of Transport
Why should you drive yourself to work, pay for gas and for parking, while it’s much cheaper to use public transport? The transit system in most cities is developed and affordable. You can save a lot just by using public means of transportation.
20. Avoid Subscribing To Cable TV Channels That You Don’t Really Watch
This is a common problem in many households, where people subscribe and pay for channels they don’t really watch. Isn't that wasteful? If you have subscribed to a cable TV, then review if you have channels that you pay for but don’t actually watch. Unsubscribe from those channels and you will save a whole lot more.
21. Make a Budget
Identify all monthly income that you receive. Afterwards, write down all items of expenditure for the whole month. Compare your income to your expenditure and establish if it matches or if you might need to readjust your expenses. Budgeting helps in identifying items that are not really needed and those that are essential. It also helps you to know your financial position.
22. Save Before You Spend
The action of saving should always come before spending. Don’t spend your income before setting aside some amount of money to the savings account. This will instill a disciplined saving culture.
23. Consider Generic Drugs
Generic drugs are way cheaper than brand drugs. If you have a physician, ask them to always write prescriptions for generic drugs.
24. Make Monthly Credit Card Payments Early
If you have a credit card, you should strive to make your monthly payments early to avoid being charged extra for paying late. You can save a substantial amount of money through this approach.
25. Check for Cheap Airlines
Cheap airlines will offer cheap fares for a trip as compared to major airlines. You can fly economy class instead of flying business class. You can save a good amount of money if you frequently use air transport.
In conclusion, the advice above, when followed diligently, can help you save a lot of money and enable you to start accumulating wealth. The best way to start would be writing down a plan on how you can implement the tips that apply to your situation. All the best!