Tips On How to Save Money (2020)

How to save money? It is an eternal question everyone has asked or wondered about at some point in their adult lives.

We all know how important it is to have some saving set aside for those rainy days. 

However, as per Global Findex, only 48% of adults around the globe reported having personal savings set aside in the past 12 months

We know how overwhelming it can be to save money. So, we bring you simple and easy tips and tricks that will help you save money. 

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Use these practical tips to start saving money for those unforeseen events that are out of your control.

Practical Tips On How to Save Money

Create a Budget

Draw up a budget to ensure you know how much money is coming in the bank and how much fixed expenses you have. This way you will know how much money is left and how to spend it. This will help you to keep yourself away from overspending.

Avoid Debt

Avoid pilling up debts by spending well within your limits and not using your credit cards often. Once you take care of your existing debts and you do not take up more debts you can easily save money.

An Average American household had $8,398 worth of credit card debt (data from June 2019)

Ways To Avoid Debt:

  • Pay with cash, wherever possible
  • Avoid impulse buying
  • Have only limited number of credit cards
  • Focus only on things you need
  • Make credit cards payments on time to avoid late fee

Emergency Fund

As per experts, you need to set aside 6 months worth of living expenses in case of any emergencies. These savings help you in case of any unforeseen emergency such as losing a job or any major medical expenses. 

Make Your Savings Automatic

Set up an automatic payment plan that goes directly to your saving accounts on every pay-day. This helps make savings a normal part of your monthly money management plan. Most banks allow you to set up automatic deposits to your savings account from your checking account.

“Around 69% of adult Americans have less than $1,000 in their savings account”

Avail Coupons and Cashback

When shopping online before paying try to find coupon codes and deals to save a few bucks. You can also use apps and credit cards that offer cashback on purchases made with particular retailers. Subscribe to coupon sites and apps that are free to get deals on a regular basis.

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Before your next purchase have a look at our very own best coupon sites to get that extra discount. 

Take Lunch From Home

Buying lunch from outside while at work is always expensive. Stock up food at the office rather than spending money on overpriced salads, sandwiches, or smoothies. You can keep snacks, fruits and other knick knacks at the office refrigerator to save money on the last minute cravings.

Use Public Transportation or Bikes, Avoid Taxis

In most big cities, taxis can be extremely expensive. So avoid using them and instead opt for public transportation or if travelling near by use bikes. Keep the public transport app handy to know the easiest and cheapest way to reach your destination. 

Take Good Care of Your Home and Car

Maintaining your home and car in a good shape helps to avoid expensive and unnecessary expenses on repairs and maintenance. 

Cleaning and maintaining your car and house from time to time will help ensure there are no damages. Get your car regularly checked to ensure there are no major issues. 

Pay Your Bills on Time

Pay your household bills like electricity, water, or rent on time to avoid heavy late fees. One way to ensure timely payment of bills is linking your bills with your bank account to automate the payment every month.

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Lower Your Utility Bills

There are many different ways to lower your electricity bill:

  • Use energy efficient equipment to save energy
  • Try to use less of major energy drainers like heating and cooling followed by water heaters, washers and dryers
  • Turn off appliances on standby
  • Choose an energy provider with a lower electricity rate. This could be a company that uses solar or wind energy.  
  • Switch to LED lighting bulbs to save energy

Plan Your Meals

Making a meal plan before buying groceries will help you decide the ingredients you will need. Having a list of ingredients handy will ensure you do not over buy things you do not need. Creating a meal plan helps you save money and time. 

Avoid Impulse Buying

One way to avoid impulse buying is to delete your card details from online accounts. Keeping a list of things you need helps you to avoid buying things you do not need. 

Take a “Staycation”

Instead of spending thousands on expensive flights and hotels overseas, try and look for vacation spots near your home. Search for vacation spots nearby with affordable hotels to take some time off and save money. Staycation can mean anything from a mini break, to a day trip, or a spa day.

Plan Your Trips Ahead 

If you are planning a trip to your dream destination, plan ahead to have a chance to get cheaper tickets and hotel reservations. Do not rely on a single airline instead try to find multiple sites to get low airfares.

Use sites like Google flights to get multiple flight options with comparison of air fares. 

Find Ways To Get Free Gift Cards

Earning free gift cards from brands like Amazon, Target, Walmart, and other big retailers helps to save money. You can earn points and redeem them to get gift cards for free by engaging in activities like:

  • Participating in surveys 
  • Testing apps
  • Watching videos

You can use these gift cards for your next online purchases. Also, check out our list of easy and free ways to earn an Amazon.com gift card.

Bulk Buying

Buying non-perishable items like toilet paper, washing powder, or pasta in bulk saves money. If they are on sale buy in bulk to avoid last minute purchases.

Just make sure you have enough space to put all the bulk shopping!!

Shop During Sales

Make major purchases like a laptop or a watch around sales periods. For example, usually major sales hit the stores during festivities like ThanksGiving, and Christmas. You can also look for deals around Black Friday, or Cyber Monday as well.  

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Use Libraries

Library provides you with free sources of entertainment like, books, audio books, and other stuff. If you love reading books, lend a digital copy from your closest library rather than splashing cash on your very own copies.

Track Your Spending

Keeping a track of what you are spending on might help you avoid incurring more expenses. We believe that spending on big things gets us in trouble. But the truth is that small recurring expenses can also eat through your money. 

Track every spending expense which means, every household item or coffee. You can also use a free spending tracker to do so.

Sell Unused Stuff & Buy Second Hand Stuff

Make money by selling stuff that you do not use anymore. And if you want to buy something for the house then look for second hand stuff which is far cheaper than stores. You do sometimes get unused and good quality items at the second hand stores and apps. 

And remember what Marie Kondo said Discard Everything That Does Not Spark Joy.

Conclusion

Saving money takes a lot of effort, focus and will power. But saving money is extremely important as it protects you from any unexpected financial emergencies. 

So, take a deep breath, go through our list and find out which of these tips of saving money would work best for you.

And always remember: 

“Do not save what is left after spending; instead spend what is left after saving.” ― Warren Buffett

Let us know what tips you follow to save money in the comment section below.

And do share our easy tips and tricks to save money with your family and friends.

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