Aug 10, 2022
Saving money offers peace of mind and a more secure future. The better your finances, the more you can focus on whatâs important in your life. Become a money-saving expert by using these 10 proven tips we gathered from investors and economists.
Ding-ding! Oh, happy days â you just received your hard-earned salary. But who should be the first to have a piece of it? Your landlord or the bank? No, you!
Thatâs how money-saving experts suggest you look at saving. Not as an inconvenience or denying yourself nice things, but putting your (future) self first! Itâs valuing your long-term financial well-being over instant gratification.
âIâll save the money left at the end of the monthâ. We all know it wonât work because thereâll be none remaining. Warren Buffet, the worldâs greatest investor and a money-saving expert, has said: âDonât save whatâs left after spending; spend whatâs left after savingâ.
Set goals and calculate how much you should save monthly to achieve them. You can have short-term goals like creating an emergency fund (1â6 monthsâ living expenses) or going on holiday. Long-term goals could include saving for a house or retirement.
Before you put more effort into saving, stop giving your money away as interest. Use the money to pay off your costly loans, and youâll immediately save the amount youâd spend on interest.
There are two well-known strategies here. The debt avalanche method means paying off your biggest loans first for maximum impact. But it can often be overwhelming since seeing results takes time.
The debt snowball method suggests you start with the smallest loans. This gives you a sense of accomplishment and gets the ball rolling.
Avoid costly instalment plans. Your washing machine will eventually break down, and youâll want a new phone at some point. So be ready for these unexpected costs by saving up.
Warren Buffet, one of the worldâs wealthiest men, warns against unnecessary risks: âRule number one: Never lose money. Rule number two: Never forget rule number one.â
Maths proves that cautiousness pays off. Imagine you have âŹ1000 and lose âŹ200 (20%) in a get-rich-quick scheme. How much does the remaining sum need to increase to get back to square one? The answer isnât 20% anymore, but 25%, since 800 + 20% is only 960.
As you can see, itâs much harder to recover lost money. It can push you into a downward spiral of taking on ever riskier investments to compensate for losses. So, avoid setbacks by not losing money in the first place.
Budgeting can be tedious; we get it. But you donât have to count every penny. An easy budgeting method is the 50/30/20 rule or the needsâwantsâsavings technique.
This method recommends that your unavoidable fixed costs like housing, utilities, food, and transport comprise up to 50% of your after-tax income. If they donât, see if thereâs a way to bring them down.
30% of your income can go to âwantsâ or non-essential expenses like dining out, streaming subscriptions, and shopping. The remaining 20% should go to your savings or paying back loans.
Budgeting doesnât mean you canât have nice things. It gives you peace of mind to spend the money you have left from bills and savings.
Set up an automatic transfer to a savings account or separate current account. Also, make spending money uncomfortable. Use a savings account with a delayed payout or donât have a card for that separate current account.
You can have many different current accounts for greater clarity â one for paying bills, one for savings, and the third for spending money.
Government or employer-backed savings plans are often the most convenient and cheapest way to save for retirement.
Itâs okay to ask, especially if you havenât done so in years. Prepare for the meeting by writing down your recent accomplishments, any courses youâve taken that have increased your competence, and the praise youâve received.
Do your research on how much people in your position typically earn and rehearse what youâre going to say.
If the company canât afford a decent raise, ask for bonuses thatâll help you save money or for more free time that you can use for a side hustle. Donât forget to save that extra money!
Owning a car can be one of lifeâs biggest expenses, along with housing and food. And experts donât consider owning a car a good investment since it loses value yearly.
Besides the upfront price of your car and fuel, other expenses like insurance, maintenance, cleaning, and parking fees also drain your bank account. Read more about the hidden costs of owning a car.
Itâs possible to calculate if owning a car makes sense for you. But you may want to consider ride-hailing if you have to work more hours than there are in a day to afford a car. For most, owning a car isnât that essential â indeed, the average car is parked 95% of the time.
Where possible, see where you can cut costs by looking at cheaper alternatives:
Use the age-old proven rules: make a shopping list, eat before going to the store, shop less often, take advantage of discounts or coupons, and shop online.
You can prevent unexpected spending and food waste by planning your menu. Check out this healthy grocery list for reference.
Online grocery shopping services like Bolt Market will help you save money by reducing emotional purchases. Youâll also save the money youâd spend on the commute and an hour of your time.
With the Bolt Food app, youâll always see the cost of your shopping basket. Your purchase history will also help you with budgeting. Furthermore, you can just copy last weekâs order, stopping you from making unnecessary purchases.
You can save money by living on instant noodles, but where can you go from there? Money-saving experts stress that you can only save 100%, but you can increase your income infinitely.
Start a side hustle to make extra money. Think about the skills you already have or if you could learn one (there are plenty of skills you can pick up with free online courses). Check out our post about low-cost money-making hobbies.
One easy and hassle-free way to boost your income is to become a Bolt driver partner or Bolt Food courier partner.
We hope you got some great tips for saving money. Getting your finances in order may take some time, but it certainly pays off in the long run.
If you want to save money on groceries, try Bolt Market. You can also give it a go if youâre eager to start budgeting and donât want to spend the next hour in the supermarket.
Download the Bolt Food app and get groceries delivered to your door.
Disclaimer. The opinions expressed in this blog post are for general informational purposes only and are not intended to provide specific financial advice or recommendations for any individual or on any specific security or investment product.
