Practical Ways To Save Money
A penny saved-Practical ways to save money.The old saying: “A penny saved is a penny earned” still has meaning today; yet remains increasingly difficult. With the cost of living on the rise and wages seemingly at a stand-still, this writer even feels like it is impossible to save money, sometimes!
The Rainy Day Fund
Exactly what is this rainy day fund and how much should be in it? When thinking about practical ways to save money, the rainy day fund is for when the unexpected happens. Examples of a rainy day:
- An unexpected flat tire or other minor breakdowns
- Your washing machine needs a belt
- A window gets busted
- A pet needs to see the vet
These are all unexpected yet minor inconveniences for the most part. This fund should contain a few hundred dollars at least, to begin with. It is a good idea to have this rainy day fund in a separate account or as some prefer, a safe place that only you know about. Keep adding to this fund whenever you are able, and this can be spare change or single bills. It all adds up.
Start Small, But Start now
Now is the time to start saving for that rainy day. Begin by using cash for some purchases instead of a credit/debit card so that change can be saved. If you get cashback on a card that you use, transfer that cashback to another account specifically for the rainy day. Don’t spend that cash back!
Income Tax Refund
Don’t spend that income tax refund, save it. This is the best opportunity to add a good amount to that rainy day fund. If you count on your tax return to help pay off existing debts, great but plan to put a percentage into your rainy-day fund as well. Think about how big a savings or retirement fund can grow if you are able to save most or all of your income tax refunds!
Stop Impulse Buying- The best practical way to save money
Do you enjoy shopping? Do you leave a store with more than what was on your list? That is impulse buying my friend. We are all guilty of it at some point and in fact, all stores count on that impulsive nature for their revenue! Here are ways to avoid impulse buying.
- Grab a handbasket, NOT a cart, if you have just a few items to buy.
- Avoid the aisles you know your items are not located on.
- Have a list and stick to it!
- Think about the purchase. Do you really need this or is it a WANT?
- Never grocery shop when you’re hungry and go alone if possible to limit the “I wants”
Common Tactics Used By Stores To Encourage Impulse Buying
- The entrance will probably have a nice showcase of seasonal items and so-called sale items that are really not sales if you took the time to check.
- Sleek packaging appeals to the eye
- Bundled Pricing is common but rarely saves you any money. 2 for 3.00? Compare that to a single and see for yourself!
- The checkout offers plenty to toss into your basket or cart
- Cross Merchandising will offer a related product nearby that “goes with” another product right next to it.
- Everyday essentials are placed near the back of the store, forcing you to travel through their landmine fields of impulse products.
- Interactive displays are popping up in a lot of stores
- FOMO- fear of missing out is often used to force a purchase. Unless it’s clearly a limited sale price on something you REALLY need, move on! It will probably still be there next month.
- Incentives to spend more in order to save a ridiculously small amount of money work on some people. For instance, spend $20 to save 5%? Hello…
Consider Auto Shipments To Save Money
One way to avoid spending more is by not going to the store for things you buy consistently, such as pet food. By having certain items shipped to your door you can rest assured they will be there when needed. Shop around for the best deal and relax. I enjoy having certain items on a subscription basis and having them added to my monthly budget amount makes it easy to remember and modify as needed.
The penny hoarder is a great site to check out for ways to save money and even earn more money.
Learning to do a lot of things yourself can help you to save money
Are you handy around the house or yard and like to get things done your way? There are many easy projects that can be done without hiring someone to do them. Check out how to create your own small workshop.
