5 Top Money Saving Tips

Posted on 24. Jun, 2013 by in Finance

Saving money is not easy. After all, there are bills to pay, food to buy and entertainment to pay for, which can make it tough to put aside some extra money for the future. It is even harder if you have low self-control when it comes to discretionary spending, which leads to a lot of perplexing purchases and money wasting. If you are having a hard time keeping something in your savings account, then you should follow these 5 top money saving tips.

Go on a Spending Diet

If you find yourself spending too much money then try going on a “spending diet” or even a “spending fast.” This means that you should pick a day of the week or even a week of the month where you do not spend any money other than what is necessary. At the end of the month you will find that you have some extra savings that you can put towards debt or just leave in the account to draw interest. Try to choose a week each month where you do not go out to dinner, see movies or buy anything you don’t need. These savings will add up over time.

Cut Discretionary Spending

Did you really need that lobster dinner? Is that new leather jacket really going to make a difference in your life? The answer to these types of questions is almost always no. If you find yourself buying a lot of things you don’t need then you must evaluate and lessen your discretionary spending. Try this trick: the next time you want to buy something you probably don’t need, wait. If you still want it in a few weeks then go ahead and buy it, but you probably won’t.

Automate Payments and Deposits

Try to have your paycheck automatically deposited into your account, which is a great automated way to save. To reduce late fees you should also have your payments and bills deducted automatically, which is a great way to save.

Pay in Cash

Every time you purchase something on credit you are essentially sucking money out of your savings account. To avoid this, only purchase items with cash, which will save you money on interest rates and purchases you can’t really afford.


Audit Yourself

Take a look at your purchases. If you find a pattern such as spending a lot of money in the two days after you are paid, then you can help correct this behavior.

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