It was raining as Bob drove home that Sunday night. It was late and all he could think of was the presentation he was scheduled to present the next day. If everything went well, the presentation could potentially earn him a promotion. Bob decided he would start saving up after that. Or maybe he could finally buy a car.
As he contemplated the kind of car he should get, the tire of his rental climbed over a piece of rubber on the highway and swish went the car rotating out of control. He hit the brakes! But the car didn't stop until it hit the divider on the road. It was a rental and just to save money he hadn't brought insurance.
Like most, Bob didn't have enough savings for this rainy day. He had been saving money, but he was not aware of the right ways to save money. Count your blessings and start saving if you're not suffering from such financial burdens, here are some small steps that can save you a fortune.
Use Paper Money Instead of Credit Cards
When you use paper money you can mentally keep count of how much money you have spent. While using credit cards it is easier to lose track of your expenditures.
The best way to save money is to make a budget. When you go out shopping, make a list and take the required amount so you don't overspend. To avoid the use of credit cards you may either break them or freeze them. Freezing them will give you enough time to decide whether you really need it or not while the ice thaws.
Shop for Cheaper Substitutes
Using a cheaper substitute of certain products will save you a lot in the long run. Check the prices at various places before buying anything expensive. Do your laundry and ironing at home if possible. Make your own lunch, coffee and meals. Make use of discount offers and look out for sales. Before buying something, make sure you really want it.
Save Money on Entertainment
Borrow books and rent movies instead of purchasing them. While going out with family try to plan trips in advance. Find some low cost events, parks and other places. Family vacations can be very expensive. However the cost can be reduced by booking and planning ahead of time.
Set monthly and yearly goals for your savings according to your income and your objectives for saving. For instance if you are saving for a house, you need set a higher goal as compared to saving for something less costly like a car. Keep a record of your expenses. Set milestones for savings, and once your reach them give yourself a treat.