One of the major reasons why people struggle financially is that they figure out a way to spend their money before they earn it. And as soon as we get our paycheck, the first thing we do is spend it on unnecessary expenses as decided.
It’s only later, usually towards the end of the month, when we start calculating our expenses and check our savings do we regret our decision. However, if you don’t want to end up in such a situation, then you can take small steps to create a better financial life.
One of the methods for enhanced financial safety and freedom is daily budgeting. As they say, “Little drops of water make the mighty ocean.” Saving small amounts on a daily basis will lead to accumulating enormous wealth over a period of time.
But how to save daily and live on a budget? Let’s find out…
Create a Monthly Budget at the Start
One of the simplest ways to create a better financial life is by creating a monthly budget at the start of the month. Make a list of all the things you will spend your paycheck on. Also, enter an approximate amount for the expenses.
This helps you get an approximate idea of your spending and savings on a monthly basis. You can, then, adjust your budget periodically to increase your monthly savings.
For this task, you can make use of budget spreadsheets software or use the old-fashioned pen and paper method. Once you have your budget finalized, exercise and maintain a disciplined routine to stick to it.
Make Your Own Coffee
Are you one of those who rely on restaurants and cafeterias for your morning coffee? It might be time to cut down or completely eliminate the visits. Why? Because if you consider the bigger picture, it is a costly exercise.
Did you know that the average Starbucks coffee that costs you 2 to 5 dollars can be easily brewed at home at just 0.16 dollars per serving? Thus, you can end up saving hundreds of dollars in a month just by switching to homemade coffee.
Review/Cancel Your OTT Subscriptions
Aren’t we all guilty of having subscriptions to multiple OTT platforms like Netflix, Hulu, and Amazon Prime Video, among others? We understand that we all are tempted to purchase a subscription at just 9.99 dollars a month. More importantly, it’s the Fear Of Missing Out (FOMO) on popular series and movies.
But, how many movies or series do we actually end up watching? Hardly any, right? Thus, keep reviewing your OTT subscriptions regularly and only choose the ones you truly need and use.
Alternatively, you can also opt for a shared subscription and split the costs to further save your money.
Save Electricity
You can easily cut down on your electricity bills by making a few simple changes in your electricity consumption patterns.
First, you need to replace all old, outdated appliances, lights, and fans with new, energy-saving ones. Second, you need to develop a habit of unplugging devices from the socket that are not in use. You can end up saving 25 dollars a month (300 dollars yearly) with these simple exercises.
Additionally, you can also switch to solar-powered electricity, which will not only help lower your monthly bill but is also good for the planet as well.
Pay With Cash
Credit cards have simplified our lives. We can easily pay for things with them without any worries at online and offline channels.
However, they can lead to over-expenditure as these are often guilty of making us impulsively buy things. This leads to huge, inflated credit card bills that slowly eat away from your precious savings.
Cash, on the other hand, inculcates discipline and helps stick to a budget. It helps manage our mood swings and impulsive buying decisions. Well, you can’t spend money you don’t have, right?
Cut Junk Food
If you eat junk food regularly, then you spend money unnecessarily in two ways. The first is in the form of the bill for the food items. The second way is in the form of unwanted medical bills as such foods can cause heart diseases, stroke, diabetes, cancer, and even death.
Thus, switch to fresh home-cooked food to save on the expenses mentioned above and maintain a healthy, fit lifestyle. You can have the occasional cheat meal if you can’t control your cravings.
Wait 30 Days Before You Buy
In this digital world, you can buy anything you desire with just a few clicks. This has instilled an impulsive buying habit in many individuals. This habit can quickly and seriously drain your money.
One of the easiest ways to wean from this habit is to wait thirty days to buy an item, no matter how small or big it is. Add the item to the cart and see whether you really need that item after a month.
If not, remove that item from your shopping list for good. You will be surprised at the amount of money you can save with this simple habit.
Don’t Be a Part of the Flex Culture
“We buy things we don’t need, with money we don’t have, to impress people we don’t like.”
Flex culture, popularized by social media, has led to people buying expensive items even though they can’t afford them. This trend is particularly popular among teenagers, but it can affect people across ages.
Thus, live below your means. Don’t live to show off to others. Prioritize comfort, functionality, and value overlooks and brands.
Parting Thoughts
Saving money provides financial stability, which is a key component of living a stress-free life. Agreed, saving money doesn’t come naturally to most of us. However, taking small steps, such as the ones mentioned above, can help you in achieving your financial savings goal.
You can then use the saved money to make further sound investments that will help your money grow further. Which of the above tips are you looking forward to including in your life? Do you have any tips of your own? We would love to hear from you.