Amid the rising cost of inflation, it is difficult to stretch a pound. Looking for opportunities with higher pay is not feasible for everyone. Some people are lucky that they have got a hike in pay, but unfortunately, the hike is not proportional to the cost of living.
In this scenario, it is more important that you have some money in your savings. More and more people are being pushed to borrow money due to collapsed emergency cushions, but this is a big mistake.
You are already in a tight corner. It could be challenging for you to keep up with payments. Borrowing money could take a toll on your finances, so make sure that you turn to loans only when there is an emergency.
You should rather find out some ways to save money. Budgeting is crucial to cut back on spending. You can put aside some of your income as savings. There are some common ways to save money, like cancelling subscriptions, cutting down on restaurant food and the like.
There are so many other ways as well to save money. Some of the methods are not concrete as they will save you money in abstract form. This blog discusses some simple and creative money-saving tips.
1. Avoid impulsive purchases
Impulsive purchases are one of the biggest culprits to killing your savings. In order to stop yourself from spending money on frivolous purchases, you should give yourself some time to make a purchase. A rule of thumb says that you should make a list of things you want to buy and then see how many things you need after a week.
You will see the list goes shorter and shorter every other day. If you are habitual of emotional shopping, you should divert your mind by doing something productive. Do not forget the difference between needs and wants. Buy things only when you need them.
2. Pay with cash only
It is quite important to bear in mind that you use cash to make all transactions. Most of the people use plastic money as it is more convenient to carry than cash, but sometimes convenience costs you a lot of money.
At the time of using a debit or credit card, you do not realise how much money you are spending. If you have cash, you know how much you have already spent and how much you are left with.
Making transactions in cash will prevent you from overspending. As you are habitual in using plastic, you would find it hard to shift your habit to using cash. The best way is to freeze your credit card or keep it somewhere where you cannot reach it so easily to it.
3. Cut down your shower time
A hot shower could be very relaxing. To get the therapeutic benefits of warm water, you may be tempted to stay longer in the bathroom. Unfortunately, there is where you slip up. Do not forget that the more time you stay in the shower, the more heating bills will generate.
Try to cut back on shower time. Try to know how much time you need to clean yourself. Set a timer, so you stop when the time is up. You will be able to save a lot of money by cutting back on shower time.
4. Shop on weekdays
Weekdays are the best time to buy groceries. Most of the people buy groceries at weekends, thinking that they will get them at a good bargain. You will likely see some money off the actual price, but such offers and schemes are simply bait.
The actual prices are hiked before offering discounts. You should rather buy on weekdays as you will be able to get groceries at a good bargain. Further, you should try to avoid buying a single item at a time.
Buying groceries in bulk for a whole week or month will help save you a lot of money. Make sure that you do not buy goods in bulk that are likely to go off very soon. It could be beneficial to buy toiletry products in bulk, like toilet paper, toilet cleaners, etc. You will likely be able to save a lot of money.
5. Ask for discounts
Whether you are to buy groceries or a piece of furniture, there is nothing wrong with asking for discounts. Prices you are quoted often involve a lot of margins. Even if they may seem affordable to you, you should still ask for a discount.
Most of the time, you avoid haggling for better prices as you believe that it is unprofessional. Remind yourself that you are not asking for free. Being a patron for a business, you can ask for a small favour.
The money you save on the deal should go toward your emergency cushion. This will help you avoid borrowing money when you come across some emergency. However, if you still need to borrow money, you should try to take out instalment loans for bad credit.
These loans will be much more affordable than payday loans as they carry lower interest rates and are paid down in fixed instalments.
5. Use a reusable hand towel
Paper towels are more popular in the kitchen and bathroom, but they can suck a lot of money away from your pocket. You should instead use a reusable hand towel. The best thing is that you can wash them, and they can last for years.
You can surprisingly save a lot of money by replacing paper towels with hand towels.
The final word
In order to fight against inflation, you must have savings. It can be hard to stash away money for a rainy day, but with the tips mentioned above, you will be able to achieve your saving goals.
Try to create a budget, cut back on your spending, use cash instead of cards for payments, shop on weekdays, ask for discounts, and use the reusable towel. There are so many other tips you can use to save money.