Good financial habits are so important that many advocate financial
education should be taught in schools from an early age. Your financial
habits will have a huge impact on many areas of your life and will
affect things like what type of holidays you can take, where you live,
what you can do in your spare time, when and how well you can retire and
of course, the immeasurable but crucial ‘peace of mind’ feeling you get
from knowing you’re financially secure. Here are 7 top money saving
tips that almost everyone can do and that can have both immediate and
significant long term benefits in your life.
Whether you are a freelance designer, developer, writer or are a distributor for a direct sales company – many of the things you spend money on each month such as car mileage, phone and Internet costs, stationery and even your utility bills; a proportion of them can now become business expenses.
Also, how many times do you walk down shop isles and get tempted to buy something you don’t really need because it’s at a reduced price or part of a special offer such as ‘buy one get one free’? There’s nothing wrong with treating yourself or your family now and again, but stop wasting money on things you don’t need! As a final tip in this area, be sure to use any loyalty cards that various shops or Supermarkets may be running. The points you receive usually entitle you to a percentage off your shopping as well as access to special deals on products that you already buy.
There are other small money saving tips from car sharing and selling unwanted items on eBay, to preparing packed lunches and cooking soups, stews and casseroles in large batches for freezing… so why don’t you join in and share your best money saving tips below?
#1 – Make Saving Automatic
In 1926 George S. Clason wrote a seminal book called the Richest Man in Babylon. Possibly the key lesson taught in the book is creating a habit of saving 10% of your gross earnings to create a future for yourself and your family. How much you can afford to save each month will depend on your income and living expenses, but however much you decide to save, make it automatic via a direct debit or standing order so that it comes straight out of your bank account into your chosen savings account before you get the chance to see it, let alone spend it.
#2 – Learn the Difference Between Good Debt & Bad Debt
It has been said that there are three great destroyers of wealth: taxes, inflation and debt. In a nutshell, good debt is money borrowed for the purpose of investing in something, whether that be yourself, property or a business. Bad debt (consumer debt) is money borrowed for the purpose of spending it. Do not borrow money simply to spend it as this will not only reduce the amount of money you have left over to save, but it will very often lead to the habit of spending beyond your means, concluding with spiralling debt that will destroy your financial future.
#3 – Minimize Household Expenditures
“A penny saved is a penny earned” they say. Most people are paying more than they need to for household expenditures like their mortgage, home insurance, life insurance, car insurance and household utilities such as gas and electric. The key message here is shop around. This is easy nowadays with comparison websites and independent financial and utility brokers. Don’t neglect this simple tip – you could find you save hundreds.
#4 – Start a Home Business
Running a part-time business from home has two main benefits from a financial point of view. The first obvious reason is the extra income it can provide. The second, perhaps less obvious reason, is the tax benefits of self-employed income. Salaried workers get taxed, paid and then spend what’s left. Self-employed workers spend, then pay tax on what’s left. In other words, self-employed workers get taxed on profits and not on income and this is a big difference.
Whether you are a freelance designer, developer, writer or are a distributor for a direct sales company – many of the things you spend money on each month such as car mileage, phone and Internet costs, stationery and even your utility bills; a proportion of them can now become business expenses.
#5 – Rent Out A Room
Do you have a spare room in your home that is curently not being used? Renting out that room could be a good source of extra, tax-free income for you, not to mention a cost-effective way of living for someone else. Though tax laws are different in each country, here in the UK, homeowners are entitled to earn £4,250 per year tax-free from letting out furnished accommodation in their home. That’s a significant extra income – just make sure you get a good tenant!
#6 – Save Money on Your Groceries
You can save a lot of money simply by changing where you shop, changing what you buy or not buying ’stuff’ that you don’t really need. For example, do you tend to buy over-priced premium or top-brand products when you could get virtually identical products for much cheaper? Research has shown that for most products, less known or Supermarket own brands are as good as leading brands – but are often significantly cheaper. Try experimenting – just change a few top branded products in your shopping basket for lesser-known and Supermarket brands and see if the alternatives are as good. If they are – stick with them and then save more money by experimenting with more products.
Also, how many times do you walk down shop isles and get tempted to buy something you don’t really need because it’s at a reduced price or part of a special offer such as ‘buy one get one free’? There’s nothing wrong with treating yourself or your family now and again, but stop wasting money on things you don’t need! As a final tip in this area, be sure to use any loyalty cards that various shops or Supermarkets may be running. The points you receive usually entitle you to a percentage off your shopping as well as access to special deals on products that you already buy.
#7 – Have a Financial Plan
Last but not least, as with any other area of life, failing to plan is planning to fail and nowhere is this so true as with personal finances. If you’re a student or have just started working, your financial plan may be as simple as using a weekly or monthly budget planner where you record income and various expenditures. As you progress through life, you will focus on different aspects of your personal finances from increasing your income and saving, through to protecting, investing and planning for retirement.
There are other small money saving tips from car sharing and selling unwanted items on eBay, to preparing packed lunches and cooking soups, stews and casseroles in large batches for freezing… so why don’t you join in and share your best money saving tips below?
Hi. I’m Designer of Blog Magic. I’m CEO/Founder of ThemeXpose. I’m Creative Art Director, Web Designer, UI/UX Designer, Interaction Designer, Industrial Designer, Web Developer, Business Enthusiast, StartUp Enthusiast, Speaker, Writer and Photographer. Inspired to make things looks better.
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