Imagine what would happen, if you find additional money in your monthly budget, that you may use for savings programs, debt and interest disposal or to build a fund for emergencies, as these additional funds may give you peace of mind or may take you to a tourist vacation with your family, the need to avoid thinking about ways to save money as restricting individuals, considering that the budget is ultimately a spending plan. Saving money does not mean stopping spending completely, but rather setting priorities and some financial goals.
A plan (20/30/50) to manage money in a smart way, by allocating 50% of the income to necessities, 30% to other requirements, and 20% to saving, taking into account distributions for some individuals and making adjustments to fit the equation, A sign to ensure that the acquired funds are placed in a high-yield savings account, to achieve the maximum amount of money, as some of the best online accounts pay interest rates estimated at 150 times higher than traditional banks
The 2008 crisis prompted many people to spend their savings and caused them to change their mindset regarding saving for their future, which may be beneficial for the next few years, as experts are quoted saying, “We are now in full development from a short-term investor to another focusing on medium and long investments.
Here are 60 Tips on How to Save Money in Your Daily Life, whether for daily or future purchases.
Tips On Saving Money On Day To Day Expenses
First: planning and comparison
1- Determine the budget
You can control your expenses with a monthly budget, always taking into account your monthly income, the amount you spend and determining what you will spend.
After we have a clear view of our regular incomes and expenses, we will know the expenses that we can do without.
There are various applications and options by financial institutions that facilitate this type of follow-up, and if we do not know how much we spend each month, we will not know how to manage our money better.
How do you drastically cut household expenses?
- Immediately write down all the fixed monthly expenses (loans, rent, food…).
- Make a list of the essential needs that cannot be dispensed with, and calculate their approximate cost.
- Subtract the total amount after estimating the expenditures of the first and second groups, then you can move on to the next stage.
- Select the things that you need to buy, according to a descending order from most important to least important, then you will find that you spend your money on a lot of things that are not essential and that you do not really need.
- Once you have an idea of what you spend in one month, you can start organizing the expenses recorded in a workable budget. In your budget, you must decide how to measure your expenses and determine your income in order to plan your spending and reduce excess spending. Be sure to consider expenses that occur regularly but not monthly, such as car maintenance.
- Related 30 tips to save money while shopping for food
2- List of purchases
Experts stress the need to distinguish between needs and desires, and to save money it is necessary to think about our expenses. This can be done on a daily basis even when going to the market.
We can start by lowering the mobile tariff, choosing an economical electric company or at least going out to eat in a restaurant.
4- The last day of work to fulfill your needs
A study of price control demonstrated that the average price is usually lower on Thursday or Friday compared to the rest of the week.
Second, saving is more than reducing spending
The report considers that these previous tips are the usual daily procedures that can help you save a few dollars, but the idea of saving is not stopping spending or spending less, but rather that the money that you do not spend will help you to earn more savings by l :
5- Find a good counselor and a good product
Experts believe that finding a good consultant and a better product can be a deal, as we can save more than two hundred euros, for example, annually in commissions if we choose the appropriate account, in reference to the type of bank you will choose and the type of service agreed upon.
6- Setting a savings goal
“If there is no clear reason for saving, it is likely that there will be no continuous effort to allocate a portion of our income to the future, and there is a risk of resorting to this money in order to achieve our desires.” And “saving is likely to be effective if it has a specific purpose, not simply from Just put the money in a box. “
7- Open a savings account
It is necessary to create an account to separate funds earmarked for month expenditures from savings funds. It is also a good idea to transfer a certain amount to a savings account per month based on what our economy allows. Through a savings account, we will get a reward for the money deposited.
8- A savings account that matches your plans
Savings accounts may not be the ideal profitable solution, given that some external factors, such as inflation or taxes, may make you make insufficient profits to cover your living costs.
This is why it is important to know what we are saving and the level of losses that we must be willing to take on a given time because financial services are not immune to risk.
According to experts, “If we plan to get this money during retirement, the retirement plan is likely to be more beneficial. Otherwise, if we are likely to need it at any time, investment funds will be the best solution.”
9- Base 50/30/20
Experts stress the necessity of applying this rule because it is so simple and effective that it be continuous, and it is represented in:
Allocating about 50% of our monthly income to basic expenses such as rent, mortgage, bills, and food purchases.
Allocating about 30% to personal and recreational expenses (gym, restaurants, and fashion).
10- Using a centenary ploy
Experts note, “This simple trick helps save one cent per day and increases the amount day by day. That way on the first day we will save one cent, the second two years, the third 3, etc. Even though we realize it is a method that requires perseverance, It will help us get 668 euros effortlessly in just one year. “
The best plan for the smartphone
After the kingdom lifted the ban on voice calls through social media applications, you can save money by using a phone package that suits your use of the Internet and monthly phone calls.
Appropriate car insurance
You cannot drive a car without being insured, as vehicle insurance is mandatory according to traffic regulations in the Kingdom. But you can choose an insurance policy that helps you to save money and fit your needs.
How To Save Money Every Day?
Find offers and discounts
Why not pay the full value of your purchases, while you can reduce the amount! Before shopping or paying your bill, search for relevant offers or discounts such as shopping vouchers, promo codes, discount coupons.
Your credit card rewards program
Check the rewards balance provided by your credit card every month. You may be able to get cashback or vouchers to help you save money on shopping.
Use discount coupon apps
There are many applications and sites that offer offers and discounts vouchers such as buy one get free. These offers will help you to save money and benefit from the services below their real prices. Examples of these applications are Groupon and Coupon.
Free services and products
You may be able to obtain some services and products that you use monthly at a lower or free cost instead of paying for a fee, such as distance learning courses.
A week without spending
I did not stop spending for a week. This will make you realize the daily expenses that you can permanently dispense with or replace them with inexpensive alternatives.
Try to reduce the cost of debt
Before getting a credit or financing card, compare your options so that you can choose the product that suits you at the lowest possible cost and thus save money.
The best way to start implementing the savings plan is to deduct the amount automatically at the beginning of each month and then arrange your financial affairs based on the remaining amount only. But try to make the amount allocated for savings realistic, so that you do not get stuck during the month and then return to using your savings to cover your expenses.
Increase your monthly income
Focusing on reducing your monthly expenses is important to ensure that the budget is running and you also have a surplus. You can also consider increasing your sources of income through part-time or consulting work for a fee.
Correct management of your financial affairs means freedom from unnecessary spending restrictions to achieve your future financial goals and aspirations. Therefore, changing your lifestyle to obtain financial independence and save more money is worth reviewing. By preparing a list of financial goals like saving and saving money in addition to its schedule, you will be able to implement them and achieve more results than you can imagine.
Review your financial position.
This step helps you in identifying unnecessary expenditures and stopping them or rationalizing expenditures for some consumption bills, as it is preferable to verify and review the value of your income and monthly expenses, and then make a decision regarding the amount that you can save after covering all of your essential expenses in a realistic way in addition to paying any installments due.
Determine the goal of saving.
Once you have answered the following questions, “What is your goal of saving? When should you start and finish saving the required amount? And what procedures must be followed for the success of your plan?” You will be able to develop a clearer vision towards achieving your goal. For example, if you want to travel, you must specify the money to be saved, and what is the period required to save the amount? And can you dispense with some expenses in exchange for expediting the achievement of your goal?
The idea of waiting and not putting money for savings aside during the start of the week or month may negatively affect the success of your plan. There are some banking services that help you solve this problem, such as the service (permanent payment order) between the client accounts for free, where you can transfer the amount that you want to save automatically every month from the current account to your savings account.
Interest in preparing the emergency fund.
Preparing the contingency fund is one of the main steps necessary for the success of the budget, as it serves as financial support to keep the savings and budget plans running even in the worst case. It is possible that you will be exposed to some financial emergency situations that lead you to pay for expenses that are not taken into account.
It is preferable that the money allocated to the contingency fund be deposited into savings account so that you can easily access it and obtain profits.
Avoid the benefits of credit cards.
Despite the many benefits offered by credit cards, they carry relatively high rates of interest and fees. It is charged if you misuse the card and you do not pay the sums due on the specified date, in which case your debt will increase in value and thus reduce your chances of commitment to the budget and savings plans.
Compare before buying to get better
You can save money by comparing the prices of the necessary products and services you want to buy, and get them at the lowest possible price. This step may give you an opportunity to redirect the amount available from the shopping process to pay off or save some debt.
Reducing the purchase of gifts for unexpected events.
A person might set up an ideal budget for saving, then discover then that there is an occasion and he should bring some gifts. The gift is an intangible, not material, value, so it is not necessary to buy gifts of exorbitant prices, but the important thing is to choose them well.
To ensure a good result, you must stick to this budget that you made for the month. And if necessary, the financial amounts can be divided according to your expenses weekly or daily.
Tip: Find a free expense tracker to get you started