Saving money is no easy feat. You need a motivation and discipline to be able to integrate it in your finances. To help you out, here’s a list of several money saving tips you might want to try.
On credit cards
- Opt to a credit card without annual fee
When choosing for a credit card, select one that do not charge annual fees. In case you choose a card that has an annual fee, make sure that the benefits of it are worth paying the fee.
- Pay on time
Make it a habit to pay your credit card balance before or on due date so avoid late payment fees.
On paying off debt
- Use snowball method
Debt snowball method is a debt reduction strategy that pays off debts in order of smallest to largest amount.
- Pay beyond minimum
When paying off debt, pay more than the minimum amount required so that you can finish paying it earlier.
- Make a grocery checklist
Before going to the supermarket, make a checklist of the things that you need to buy. This way, you won’t be able to forget the important stuff.
You can also create a meal plan before heading to the grocery store. List all the ingredients of the meal plan you created. This guide you to only buy the necessary items.
- Think twice before buying
Before buying that discounted item you see on the store, ask yourself first, ‘would I buy this item if it was not on sale?’ This will help you think if you really need the item or you are just charmed by the promo.
- Follow the 50-30-20 rule
50-30-20 rule is one of the popular budgeting rules. This guideline advices you to divide your income to three categories. The 50% of your income should be allotted for needs, such as utilities, bills etc. The 30% will go to your wants, such as dining out, travel, or clothing. Lastly, the remaining 20% will go to your savings.
- Do the 52-week challenge
One of the efficient ways to save money is to do the 52-week challenge. When deciding on the starting
amount, consider your monthly expenses since this amount will increase over time.
- Know your risk appetite and determine your investment horizon
Before investing your money, know your risk appetite and determine your investment horizon first. Risk appetite refers to the ability of an investor to take risks in the value of his/her investment. On the other hand, investment horizon refers to the time frame of your investment.
Identifying these factors will help you decide what type of fund you will invested in.
- Subscribe to newsletter of hotel and airlines
To score seat sales and hotel accommodation promos, subscribe to their newsletter so you will be notified of their sales and promos.
- Pack light
When traveling, pack light and bring only the necessary. This way, you can avoid paying baggage allowance.
Little changes in your lifestyle can make a big difference in the future. Start following these good frugal tips to secure your finances.