16 Effective Tips And Tricks To Help You Save Money

16 Effective Tips And Tricks To Help You Save Money

Saving money can be difficult for many reasons. There is little difference between what most people earn and what most people spend. Without any strategy, what little is left each month can easily be lost.

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Cutting expenses is a great way to start saving. However, if you're looking for a way to sneak in some extra savings, these 16 hacks could be the answer to your savings woes.

Get a bonus

Why did it work?

Cash bonuses help you reach your financial goals faster.

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Automate your savings

Perhaps the easiest way to save without thinking is to create an automatic savings plan. Most financial institutions allow you to set up regular transfers from your checking account to a savings or investment account.

Why did it work?

Automation is a great way to save money because most people have a hard time remembering to make a savings deposit, let alone having the willpower to do so. Automatic translation saves you from this work. Consider transferring funds to a high-interest savings account to save even more.

Increase your savings gradually

Once you sign up for an automatic savings plan, the best way to really grow your savings is to increase those savings by 1% every six to twelve months. For example, if you save 10% of your salary, zero in on a 1-2% raise next year and every year after that.

Why did it work?

It's easy to adjust to a higher level of savings in such small increments. And before you know it, you'll automatically be saving a big chunk of your bill.

Save the change

If you're not comfortable handing over control of your finances to an app, that's okay—keep switching. Every time you get home, whether it's after a hard day at work or a fun night out on the town, throw whatever you find in your pocket into the jar.

Why did it work?

Most people don't like to carry change, so this trick kills two birds with one stone. This will lighten your pocket and before you know it, you'll have plenty of money to put into your savings account.

Enter your bonus

This trick involves rewiring your mind to think about extra money like this. Whenever you receive a promotion, year-end bonus, cash prize or other monetary gift, deposit the money immediately.

Why did it work?

If you live within your means, you don't need to spend that extra income. On the other hand, most people spend their wages on 'needs'. Of course, to meet this need, you can use some money as a gift, but most of it should be used for your savings.

Define your goal

If you give one of your savings goals a specific name like "Tahiti" or "Maserati," you're more likely to try to reach that savings goal.

Why did it work?

Setting or setting goals can help keep you moving in the right direction and has been shown to be more effective than putting money into that nebulous "savings" category, according to a behavioral finance concept called "mental accounting."

Pay yourself first.

To truly make saving a priority, don't think of saving as an afterthought. Instead, make it one of your monthly bills, like your rent or car payments. Also, make it your top priority.

Before you do anything else, pay off your savings account. Then learn to live with the rest of the money.

Why did it work?

When you count your paychecks as bills, no matter what happens in a month, you're making sure you reach your savings goal. If you keep your money in a high-interest savings account, you'll reach your savings goals faster.

Using a credit card in cash

Cash back credit cards give you instant cash back on your purchases, usually in the 1% to 2% range, but sometimes as much as 5%.

This savings tip is a little more complicated than others because you have to be disciplined enough to pay off your balance each month so that interest doesn't accrue. Don't risk just using your cash back card and paying right away.

Why did it work?

As long as you pay your balance on time and in full, you'll get free money just for shopping as usual. While 1% to 5% may not seem like much, it can add up over time.

Difficult access

Convenience is great and most banks now allow you to access your funds 24/7, with a phone call, smartphone app or website.

However, easy access to your money can be detrimental to some people's shopping habits. A good way to save money, if you have a problem with it, is to make your money harder to find. One option is to open an account at a small bank in town. So if you don't want to deal with ATM fees, you should go to the bank with cash.

Why did it work?

If you have to work hard for your money, this can help you avoid spending it on unnecessary purchases. When you go to your bank in another city, you may decide that you do not need to withdraw money.

Start the contest

If the contest interests you, find a savings partner and run a contest. Set your savings options and see who can go the distance.

The winner may receive a personalized prize, such as a free lunch, or simply be given a badge of honor so the total game costs nothing.

Why did it work?

Some people are competitive by nature, so this is an effective way to use this trait. Regardless of who will "win" this race, both will be winners because they saved themselves during the race.

Set a waiting time

How many times have you had buyer's remorse after buying something? If you need to save, one of the easiest ways to use the money is impulse buying.

To guard against this common trend, allow at least 24 hours before making a purchase, especially a large one.

Why did it work?

This waiting period will help you separate the "needs" from the "needs," which should determine how you spend your money.

Visualize yourself in a prosperous future

Visualization can be a powerful tool for achieving financial goals. If you're struggling to save, visualize your performance as well as your ultimate savings goal, whether it's buying a home, a dream vacation, or a prosperous retirement.

Why did it work?

Research shows that creating a mental image of yourself doing something shapes your brain processes in how you do something. Achieving your financial goals as a good saver can help you take the necessary steps to achieve them.

Number of all purchases per hour

It's easy to get caught up in the "self-shame" mentality. You might feel like you somehow "deserve" that $500 leather jacket you've been eyeing for so long, and swiping a credit card is such a simple and painless task that you probably don't even have to think twice. However, if you take the time to mentally calculate how long it will take you to find that leather jacket, you will be less likely to buy it.

Why did it work?

Taking the time to mentally calculate your purchases against your work hours will give you pause before you pull out your credit card. If you make $20 an hour (after taxes), that means you have to work 25 hours out of three full days to pay for a $500 jacket. When you think about money through this lens, you're less likely to overspend.

Play the game "Who will you choose?"

Another mind game to play before you buy is to think about what you like: things or spend money. For example, if you want to buy jeans for $75, think about which you would prefer: jeans or $75 in cash.

Why did it work?

This is another way to stop and really think before making a purchase, preventing unnecessary or impulsive spending.

Pay yourself sometimes

It may seem counterintuitive, but one way to save more is to control the expenses you plan to make. Decide in advance how much you will spend and how much time you will spend so that the situation does not get out of control. It can be anything from a spa manicure from the pediatrician every few months to a bottle of fine wine every few weeks.

Why did it work?

In a sense, frugality is like dieting: it has a deprivation aspect. If you're on a diet and know you can never eat sweets, you'll probably want more and "cheat" yourself every chance you get. But if you tell yourself you can have cake once a week, you'll be less likely to crave it all the time and more likely to eat a healthy diet. The same goes for saving. If you tell yourself you're not going to buy anything fancy and that you need to save every penny, you're "cheating" by splurging a little here and there. These small expenses can easily add up, so it's best to plan ahead and stick to your savings plan at all times.

Continue paying off the loan

If you're thinking about paying off your student loans, car loan, mortgage or credit card debt, congratulations! But before you start spending that money on something else, consider putting it directly into your savings each month.

Why did it work?

If you've been paying off these loans over months or years, you've found a way to fit those monthly loan payments into your budget. When these payments are made, simply deposit the same amount into your savings account each month. You're used to spending this money every month, so don't waste it.

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Gabriel Olya contributed to the reporting of this article.

This article originally appeared on GObankingRates.com: 16 tips and tricks to save money

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1,255 thoughts on “16 Effective Tips And Tricks To Help You Save Money

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