How to save money in your day-to-day life.

The best way to earn money is by saving it.

Photo by Visual Stories || Micheile on Unsplash

Saving money is not necessarily a numbers game; anyone can do it with proper planning and discipline. Rather than putting off practicing until you reach certain milestones, like the next pay raise, it’s better to make everyday saving a priority to secure your financial future. Follow these financial management techniques in your daily life to watch your savings build up.

Establish a money management system

If your spending has no rhythm or reason, it is easy to waste your salary. Using these techniques to create a systematic approach to daily expenditures and savings can further expand your funds.

1. Evaluate your spending before building a budget: Document what you buy, where, and in which spending category for 30 days to gauge your spending habits. This approach will ensure that your budget is rooted in reality.
2. Set a monthly budget: Use budget spreadsheets, software, or pencil and paper to plan deposits and expenditures. Once you have a budget, you should follow discipline.
3. Pay daily expenses in cash: Evaluate your budget and determine the types of expenses you can change to pay in cash (for example, entertainment or dinner). Although credit card payments will entice you to make impulsive purchases, cash can help you stick to your budget because you can’t spend money you don’t have.

Insource Everyday Spending

Now you can outsource many errands, but you can do it yourself to lower your cost of living. Follow the tips below to save daily expenses:

1. Reduce or eliminate dining out: Cooking more — or all — meals at home can easily save you $100 or more per month.
2. Prepare coffee at home: Brewing coffee at home instead of buying a three-dollar cup of coffee at a local coffee joint every day can save you over $1,000 a year.
3. Clean your car at home: Washing your car on your driveway instead of visiting a drive-through car wash can save you $180 to $360 a year.
4. Do your own personal grooming: If you don’t go to a nearby salon, ask a stylist or manicurist to cut your hair and do your own nails (or with the help of family or friends), you will save a little every month. If you cut your hair every two months, you can easily save $250 or more per year for the cost of a professional hairdresser.

Change your view of money

Even with a fixed budget, if you do not change your daily consumption philosophy, you may fall back into bad financial management habits. These savings tips can help you replace negative consumer behaviors with positive consumer behaviors.

1. Don’t play comparison games: Stop “keeping up with the Joneses” or anyone else. Let your budget guide your spending and saving habits.
2. Delayed gratification: When you feel that you need to buy on an impulse, please evaluate whether you need or just want the item. If you are sure that you need it, please wait a full day before buying to see if the relevant product is still attractive to you.
3. Don’t buy according to trends: Instead, buy things that are meaningful to you, not the most expensive fashion items; you will be more selective in your consumption, which can save you more money every day.

Adjust your shopping habits

From groceries to gasoline, some purchases are inevitable. Fortunately, you can save daily expenses by following these tips:

1. Buy in bulk: Buy groceries in bulk at wholesale stores (including Costco or Sam`s Club). Make a diet plan once a week so that you can only buy what you need.
2. Buy second-hand items: Browse yard sales, thrift stores, eBay, and Craigslist for the items you need.
3. Buy less: When shopping in a retail store, buy fewer items and focus on buying higher quality items. Over time, you will find that the cost-per-use of high-quality goods is actually lower than that of low-priced goods because they have a longer lifespan and often have classic designs that will not go out of date.
4. Compare prices: Look up prices online before buying something at a store to determine whether another store sells the same item at a lower price. When shopping online, always check for and use coupon codes.
5. Borrow instead of buying: Items that you can enjoy without owning can be borrowed from friends or neighbors. For example, you can use a library instead of a bookstore to get the latest books.

Repay your debt

Whether it’s sky-high credit card balances or bank loans, debt will deplete your cash reserves, making it more difficult for you to cope with daily expenses and savings. These debt management tips encourage you to pay off your debts so that you can retain more income.

1. Pay off debts as soon as possible: Over time, this habit can save you hundreds or even thousands of dollars in interest.
2. Consult with creditors: If you’re in credit card debt, call your creditors and ask them whether they can lower your APR (interest rate).
3. Set debt-payoff deadlines: Mapping your debt-payoff goals with amounts and a timeline can help you track your progress, remain accountable for actually paying off the debt, and visualize how good it will feel to make that final debt payment.
4. Use the avalanche method to pay off your remaining debts: This method involves paying a minimum payment for each account, then withdrawing the remaining funds and paying more on the account with the highest interest rate. High-interest debt will consume a lot of your living expenses, so it is wise to pay it off as soon as possible. The sense of accomplishment you get from paying off one debt can motivate you to continue paying other debts.