Saving money has become a lot harder than it was a few decades back as the cost of living continues to rise and the average minimum wage stubbornly stays more or less the same with each passing year. What’s more, the crippling housing market seems to deter more and more millennials from the idea of homeownership. At the same time, food prices increase, and the job market seems ever void of sufficient opportunities.
Unfortunately, there is no hope of these issues being resolved any time soon. The best bet for younger generations to achieve financial stability is merely to learn how to adapt to the harsh economic surroundings. So, to help you get started on your journey towards becoming a money-savvy individual, we have rounded up some practical ways to reduce your monthly spend without having to lead an utterly frugal lifestyle.
Cut Out Bad Habits
Most of us don’t like to admit it, although we all have a few bad habits that can be pretty costly. However, because most bad habits are essentially small costs that add up, we tend to excuse the minimal spending and ignore that repeatedly spending small amounts adds up substantially in the long run. Whether you are a smoker, indulge in alcohol a bit too often, or even consume soft drinks more than you should, cutting out bad habits can ultimately help you free up some extra funds to put towards a money-savvy tax-free savings account. If you aren’t too sure what a tax-free savings account is or how it will benefit you, you can find out more with this TFSA Canada guide.
Withdraw What You Intend To Spend
Even though there’s so much reason to believe the world is fast becoming a cashless society, withdrawing money is not yet obsolete. While it is best to avoid drawing your entire income as transferring funds to pay bills is still essential, you should withdraw a set amount each month that you intend to spend. Instead of swiping for all your extra costs that could be considered either wants or extras, you should consider that most banks charge a small fee for swiping. What’s more, swiping gives you less control over your spending as you won’t have absolute transparency of what’s in your account when shopping around. On the other hand, spending actual money will give you a clear idea of what you have spent and what you have left.
Use A Budgeting App To Track Your Funds
These days there is an app for just about everything, and budgeting apps are nothing new at all. Instead of using old-fashioned budgeting methods, such as the iconic “envelope” method or an excel spreadsheet, you should use an innovative budgeting app that will give you complete control of all your accounts. Because there are many apps out there, you should compare your options before settling on one. Because a budgeting app will give you complete control of your funds, you will be able to avoid best going over your budget or forgetting specific bills that may build up interest.
Go Green To Protect Your Pocket
Most of the world is going green to protect the environment and help undo the extreme damage done to the planet. While there’s no doubt that you should go green to lend a helping hand towards saving the future of plant life and wildlife, going green can also help protect your pocket. This is because most principles of leading an eco-friendly lifestyle encourage reusing, recycling, and buying less. Therefore, your finances will ultimately benefit from your decision to go green. Even though you don’t have to install solar panels to be eco-friendly, you can make efforts to use less power and reduce your water consumption, which will ultimately help you save a small fortune every month and a large amount in the long run. There are also tons of other ways to go green and save money, from avoiding disposable plastics to starting your own vegetable garden and everything in between.
Make Your Own Coffee, Be Your Own Chef
There’s definitely novelty attraction involved in buying Starbucks coffees and eating out, although these novelties are not essentials, and they end up costing a fortune in the long run. So, instead of heading to the nearest coffee shop every morning before work and treating yourself to eat-out dinners every weekend, making your own coffees and being your own chef will save you a large total at the end of each month. You may even find you have a knack for trying out new recipes instead of paying a fortune for fancy dinners. This decision is also not just a great way of saving money as it is also a practical way to lead a healthier lifestyle. No doubt, making your own dinners will enhance your health and help you follow a balanced diet.
Shop Around For Discounts
Most of us get into the habit of grabbing the products we see at the store that we need. However, this habit can cost you quite a bit, whether shopping for groceries, clothing, household decor, or anything. Instead of habitually purchasing the first thing you want or need, you should shop around to find the best price. All retailers offer discounts, and as a result, you will be able to find discounted prices on just about anything. So, spending a bit of extra time shopping around will save you substantially each month regardless of what you are shopping for. You can even shop around online with the same concept as online retailers also offer ongoing specials and discounted prices.
Saving money may often feel out of reach, especially if you are living on minimum wage. Even though saving can be challenging, adopting a few healthy spending habits and enforcing discipline can make a massive difference. Even if you can only save a small amount every month, your savings account will grow over time, and you will inevitably achieve financial stability.
