- Personal Finance
7 Tips to Save Money
Believe or not, saving is considered another income stream for fixed wage earners. If you do not save money, then you have to earn much more than you need.
For saving money you just need to know waste expenses. Do not cut down necessary expenses, but of course you have to cut down waste expenses for better saving. I personally use following tips to save money for myself.
1. Record: This is the first step to start saving money. Record the expenditure you make during the day. People may call you greedy, but it’s your duty to do so. Simple approach to do this is to make a list while going to shop and after purchase is made, record costs on the list against each item. After coming back from the shopping, copy paste the prices in your record book.
With the help of record you can monitor your expenses. Carefully analyze each and every expense and find out less important expenses and try to cut it down.
2. Bargain: Second step after record comes bargaining of prices. Only 50% of shoppers try to bargain prices for a better deal. Whoever haggles is certainly rewarded. Retailers do not charge one price to all customers, they generally charge less price for hagglers.
To bargain for best prices you should have some knowledge of prices. To get knowledge of prices you can visit three to four shops for one particular item. Discuss prices at every shop and you’ll automatically get idea of fair price. This is the best working trick. And a simple rule is that do not pay what the retailer asks for.
3. Cut down Medical Expenditure: You may be amazed to know that you can save much money by just a little knowledge of home remedies. There are plenty of home remedies for common disease. Home remedies are effective and better for health.
For example, you have common cold. If you consult a physician, then he will charge up to $2 for just visiting him. Then you have to buy prescribed medicine. Overall the expenditure will be up to $5.
Instead of consulting a physician for common cold, just add turmeric powder in boiling milk and drink it after it is cold. Turmeric has the same impact as the anti-biotic has.
Nowadays it is easy to get knowledge of home remedies through the internet. Search on internet about any disease and you’ll get the information. Thus, you can easily cut medical expenditure on common disease with home remedies.
4. Forecast Prices: Forecasting always has a major role to play in the world of personal finance. By forecasting the prices of commodities of daily use you can save much money. I’m not discussing about statistical data analysis of the commodities, but I’m discussing about simple price patterns. Prices of commodity always follow some patterns with respect to seasons.
Forecasting becomes easier with the help of record of the expenditure. Prices of commodities tend to change with the change of season. Analyze price changes of a particular commodity from the past record of the expenditure. Carefully note down the changes in price during a particular season. Thus, you can spot the right time for purchasing a particular commodity in a particular season.
5. Change Habit: Changing habit offers dual benefits in terms of money and health. Habit of chewing tobacco or taking alcohol is very danger for health and it consumes much of earnings. It is difficult to leave tobacco and alcohol but it is not impossible. Another thing to do is to cut down consumption of such toxic elements if you cannot leave it.
If you calculate, you can see that, by merely leaving tobacco you can save up to $170 per annum. An alcohol is far more costlier than tobacco, and then imagine how much you can save by just leaving tobacco and alcohol.
6. Save energy: It is simple rule, save energy and save money. Buy energy-efficient appliances. For example, Instead of incandescent lamp you can use CFL tube to save energy. Do turn off electrical appliances when no one is using it. You can also save diesel by driving car at the speed of 45-50 km/h. All these things add up to huge figure if we calculate it.
7. Budget: Budget is a future plan of expenditure. Once you have decided to save money then it’s very useful tool to do so. Only include expenses which are necessary for smooth running of life.
Create a realistic budget and not imaginary or you will not be able to follow it. Once realistic budget is created try your best to follow it.