To save money means to accumulate money for future use. It also means to buy items with less the price.
The money saved could come handy to mitigate or take care of financial emergencies.
A simple saving habit can lead to investment that would bring in more money.
Some people find it easier to save money than others. For some other people, they lack a basic understanding of how best to save money effectively.
However, there are still money saving strategies that work for everyone.
Now, if you truly like to start saving money, then you should embrace the strategies that work for everyone.
Here are the 8 best ways to save money that work for everyone.
1. Make a Savings Plan and Stick With It
The first step to saving money is to make a savings plan.
You can start by allocating a percentage of your income for keeps and the remainder for necessary expenditures.
A savings plan is more or less a budget. If you draw up this plan, then you must stick with it.
People who draw up a savings plan are twice more likely to save successfully. So, take steps to make a savings plan today.
2. Apply the 24-hour Rule
This rule allows you to think over each nonessential purchase for at least 24 hours.
You will avoid purchasing expensive or unnecessary items on impulse when applying this rule.
Furthermore, it is an effective way to save money.
This rule is perfect for shopping online because you can add items to your cart or wish list and come back to them a day later.
3. Save Automatically on Your Online Account
You can save money by adopting an automatic saving option.
Here you can use systems that allow a certain percentage of your earnings to be diverted automatically into your savings account.
Once an income or salary hits your account, the application automatically diverts percentage to your accounts as savings.
You can also work with your bank to set up an automatic savings withdrawal.
4. Build an Emergency Fund
You can set up an emergency fund to save money. This fund is specifically used to tackle unforeseen emergency or uncontrollable situation.
Whenever any unforeseen events arise, you can draw from this fund instead of tampering with your savings.
Having separate savings account for emergencies is a way to go for many families that desire to save money.
5. Work on Paying Off Your Debt Fast
You should work to pay off your debt faster.
Whether you have credit card debt, mortgage debt, student loan debt, etc., it is important you take steps to pay off the debts faster, especially those debts that eat up a large portion of your monthly debt.
If you have less debt to pay each month, you will have more money to spend and to save.
So, an important strategy that will help you save good money is to pay off your high-interest debt fast. Luckily, there are many strategies you can adopt.
These may include credit counseling, debt refinancing, loan consolidation, and paying off high-interest debts first.
6. Use Rewards Credit Cards
You can save money like most people if you use rewards credit cards. The use of normal credit card will eat up your expenses.
However, if you make it a habit of using rewards credit cards, then you would always enjoy cashback on the purchases made with the credit card.
Since you are getting cash back on your purchases, it would be easier to pay off the card balance every month.
Similarly, you should also consider using rewards debit cards if you are not a fan of credit cards.
The extra cashback will help towards helping you save some money. So, whatever is your expenses card type, use it wisely to maximize rewards offers on them.
Make sure that you can pay off the balance each month because the cashback and miles are just as valuable if you don’t fall in debt every month.
Some types of purchase that attracts rewards cards include:
- Airline miles credit cards
- Gas Rewards cards
- Travel rewards credit cards
7. Take Advantage of Online Deals
There are lots of online deals that offer incentives that will you save good money.
You can shop online and enjoy good discounts on items. Talk about enjoying the shopping experience and getting rewarded with special offers and discounts.
The discounts or deals offers will help you get extra money for savings.
If you shopping grocery, clothing, house improvement tools, electronics, kitchen appliances, and so on, check out available deals on them from deals website.
Some online deals platforms that can help you save more include:
- Living Social
- Coupons.com, etc.
8. Shop With Cashback Sites
There are lots of cashback websites from where you can enjoy cashback on the face value of the item you have purchased.
These websites give cashback as incentives when you shop for specific items or when you choose products from a specific brand or retailer.
Specifically, they help draw traffic to retailers who in turn reward them with a commission.
The commission is then shared with shoppers as cashback. Some pay up to 100% as cashback on the face value of the item.
Cashback sites work with thousands of retailers to bring discounts and price cutting deals on your purchases.
Some good examples of cashback sites that can help you save more include:
- Rakuten.com – you can get up to 40% as cashback
- TopCashBack.com – You get up to 100% as cashback.