Life is and will always be full of uncertainties. Just when we thought we have everything under control come nasty situations when we least expect them. This much is true when COVID-19 hit in 2020 which instantly put almost everyone deep in a hole. Finances became even more difficult to manage. Rent payments fell way behind. Everyone clung to dear life because they either have not enough money to spend on hospitalization or were just plain broke from unemployment. It sucks but we got no one else to blame but ourselves for not being prepared. So now more than ever is the best time to put in the work before the next unexpected happens, starting with our savings. Let me share with you 5 Effective Ways I Use to Save Money.
—Save first before expenses
It’s important that you have a sound budget that makes savings a priority over expenses. You can utilize useful tools online such as SavingsCalculator.org to know how much money you have to save each month for a certain goal. This lets you set aside an amount for your savings once you get your paycheck and what’s left of it would be distributed towards expenses.
Doing this is the most effective way to save money. When we do the opposite, we’re often left with nothing to put in our savings. More often than not, we’ve already exhausted our salary even before receiving it. Prioritizing saving up also forces us to live within our means which keeps us from unnecessary spending.
You should also put your savings where it isn’t easily accessible such as Time Deposits, UITF, or mutual funds. Having it in a separate bank account which you can easily withdraw money from is far from ideal. Unless you have enough discipline and control to leave your savings alone, you should consider the following options mentioned above.
—Think things through before buying anything
Shopping has already evolved a hundredfold differently than a decade ago. Online shopping is now a thing when not so long ago, malls and thrift stores were like our sweet little piece of paradise. With the emergence of various shopping apps like Zalora, Lazada, etc, shopping for our favorite brands such as Estee Lauder is now easier and hassle-free than ever. We can have goods delivered to us with just one click and all within the comforts of our homes.
While this may have made shopping simpler and seamless, it also put a lot of strain on our budget and our efforts to save. Taking every single item in our cart to the checkout is tempting especially with the presence of huge discounts and great deals. But no matter how great these deals may be, the one thing we always have to do is to think it through, not just once or twice, but several times over. We always have to assess whether we actually need this item or this will just quickly end up in clutter.
—Avoid borrowing money
One of the biggest mistakes that you can make when it comes to your finances is to keep borrowing money. When you borrow money, you put yourself deeper in a hole. It’s a temporary fix that has bigger consequences. Borrowing money whenever you’re short of funds seems ideal at first but repaying it, with or without interest, adds more weight to your finances. This puts you further behind rather than being one step closer to getting caught up. You should make more money instead of borrowing. Or better yet, live within your means.
—Look for additional sources of income
There would be times when out of the blue, we would aspire for something more. Like a new gadget or a brand-new car. Perhaps a new hobby or seek further education. It’s not wrong as people are meant to evolve and it’s completely normal to aim for bigger things. But we also need to consider whether our current financial situation can afford us our new dreams. Some are quick to take a loan but what’s more ideal is to look for additional sources of income.
When you choose to make more money instead of quickly getting cash from loan sharks to instantly gratify your wants/needs, you’re left with a higher net worth after several years instead of paying off debts. Time is never our enemy. It’s only when we lose patience to allow the right time for things to take their rightful place do we make time work against our favor.
—Take care of your health
Health is wealth. It sounds cliche but it’s true. When we take care of our health, we avoid putting ourselves in a situation where our piling hospital bills take every last bit of our savings. Taking care of our health doesn’t just involve having a healthy lifestyle (eating healthy and exercising). It’s also about accepting that we’re prone to illnesses despite our healthy habits. The question is, “What can we do so we don’t end up worrying about bills when we are sick?”
Plan ahead. Set aside an amount for emergencies or better yet, get Health Insurance. Most health insurance companies offer coverage of up to 2 Million for several critical illnesses at affordable monthly premiums. You may see this as far-fetched for now but you can never be too prepared.
There you have it, lovelies. I hope these tips/effective ways to save money help you in getting started with your saving-up journey today. If you see me as not someone to talk about this as I travel a lot, believe me, I’m much of a control freak and I hate it when I see my finances are all over the place. Until next time. Ciao!
