Best Tips for Saving Money Part 1

Money Saving Tips Part 1 - Finance Blog

Set Goals

From past experience I have found that most people do better with saving money if they plan ahead and set themselves goals to achieve over a certain time period. A typical figure people aim to save is $10,000.

What could you do with that type of money? You could treat yourself to some very nice things, however for the most part people would use $10,000 as an emergency fund in case anything went wrong that was unplanned for.

However this could be quite a lot of money to initially aim for and could lead to your plans backfiring. To prevent this we suggest you to think about saving $10,000 but realistically aim to just save yourself $1,000 to begin with.

The reason for this is that money tends to snowball quite quickly and once you get the ball rolling it starts to add up.

Next Steps

So after you manage to save the initial $1,000 you need to make sure that all of your debt has been paid off, yes it is important to constantly save but there is no point in doing so if you are going to get a visit from a debt collection agent at some point in the near future.

Once you have taken care of all your debts then the next step is to prepare your mindset for success because if you are not ready mentally to seriously start budgeting then it will never work.

It’s Time to Get Serious

Ok so to start your year of saving we recommend you go on a huge and massive spending FREEZE in the first month. This is something which helps a lot of people to get themselves into the correct mindset for the rest of the year.

Here is a list of simple things which you cut out straight away from your month that should really make a difference to your wallet:

  • Gourmet Coffee
  • Hair Appointments
  • Random and Unplanned trips to shops or supermarkets
  • Gourmet Food
  • Takeaways
  • Fast Food

The last point about gourmet food I can’t stress enough about, if you are really serious about saving money then you need to start getting involved in Meal Preparation Sunday which is a practice a lot of money savvy people take part in.

Essentially you buy various ingredients in mass bulk and then one Sunday you just cook up something along the lines of two weeks worth of food, freeze it all and then take in some every day for work.

On average a typical person would save 50% of their monthly food bill by taking part in a Meal Preparation Sunday, there are various resources online that can help get you started, they even feature many different recipes so you don’t have to have the same food every two weeks.

Earn Cash on the Side

Arguably the most important topic of all is making sure you have an extra revenue stream outside of your job, however this will be discussed in the next part of our Money Saving Tips series, so make sure to stay tuned.

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