As the saying goes, you can never have enough money. But for many people, that’s just not true. In today’s high-tech, 24/7 world, we all live in a digitally connected world where nearly everything is available for our consumption.
So much so that it’s now considered conventional wisdom that we can no longer afford to consume—or at least should try to keep our costs as low as possible. The level of affordability being suggested these days is not about how much you make or how much debt you’re in but rather what you spend your money on.
Many believe there is a “gap” between the amount they can spend and what they actually do spend their money on. So how can they cut back on frivolous purchases and save some money? Here are some tips on how to save more money as an individual consumer:
Budget your expenses first
The first, and most important, step in saving money is to put away money each month. This is the most significant investment you can make towards saving money in the long run. In fact, it’s the most important thing you can do because it enables you to “run on fumes” while saving for the future. If you don’t have money saved up for unexpected expenses, it’s very easy to fall into the trap of “buying expensive things that you don’t need”. This can easily lead to debt and reduced quality of life in the future. Make sure you have a plan for recurring monthly expenses so that you don’t fall into this trap. You can find a budget in any major publication or on the Internet. Make sure that all your monthly expenses are accounted for and that you are clearly prioritizing spending money on what you need and what you want to save for (i.e. the future).
Only buy what you need.
When it comes to shopping for foods and beverages, it’s important to look at the amount you are paying for each item as opposed to the quality of the item itself. This is known as the “perceived value” and it can significantly impact your grocery bill. It’s also worth noting that you should never make more money buying groceries at the store than you do working at a non-profit or doing repairs on your own home. Consistent with this, it’s also important to find a job that pays enough to provide you with the food you need while also paying enough to cover your groceries. This way, you are ensuring you are saving for the long term and not just today.
Shop around
You don’t have to spend money on everything in your area or on everything in your price range. It’s also important to choose items that are within your price range so that you aren’t accidentally spending more than you should be.
It’s also a good idea to shop around at different stores and see what other consumers are buying. This will allow you to save money by not buying the most expensive versions of certain items or by choosing the right size for a given item. If you’re unsure about something, always ask a member of staff. They are usually happy to help you out. When it comes to food, you can often find special offers and deals on online retailers. The selection and quality of items available can vary depending on where you purchase your groceries from. Look out for “buy one, get one free” offers when you’re grocery shopping.
Try to sell bargain items
In today’s market, it’s important to look out for items that are on clearance or “clearance”. These items may not seem like “essential” items but you never know when you might need them. It could be at the bottom of your shopping list or even in your car. When you’re looking for deals, don’t just automatically assume that clearance items are “worthless”. In many cases, clearance items are just discounted because they are “worn out”. Worn items are items that have been used. They could be clothes, household items, or even computer hardware or software. You can often find deals on clearance items by going to the store or web site where you normally shop and looking for the new items. When you find something you like, simply “purchase it in advance”. This way, if you wear it out, you can return it for a refund or even a free item of another type.
Track your spending and use an app
One of the best ways to save money is to use an app to track your spending. Apps can usually tell you how much money you have left on any given card or how much interest you are paying on a loan. It can also help you to monitor your credit score and understand your riskiness when it comes to making purchases. There are many different types of apps and some may be better suited to you than others. Some may also provide you with financial counseling. The one downside to many apps is that you have to sign up for each one in order to use it. This can be a bit of a pain especially if you’re someone who doesn’t like to read or type. What’s more, if you become short of money, you will probably lose some of your accounts if you forget to close them out. A better option would be to use an app that you can access on the go such as Apple Pay, Google Pay, or Windows 10 Wallet. You can find a full list of apps on the Microsoft website. Another downside of some apps is that they may have “settlement fees” if you miss a payment or if your card is lost or stolen. These fees can eat away at your savings if you don’t have the money to pay them back right away.
Conclusion
There’s no question that living within one’s means is a difficult yet important part of financial planning. It’s just important to make sure you’re saving for the long term and making smart spending decisions.
