They say money can’t buy you happiness. But, you might as well cry inside a house rather than on the road. Most people live in a delusion when it comes to the idea of money. They spend too much and wonder why they’re poor. If you don’t save enough to live up to your dreams, you’re certainly going to have to suffer.
“Money isn’t the most important thing in life, but it’s reasonably close to Oxygen on the ‘gotta have it’ scale,” expressed Zig Ziglar, the famous American author, and motivational speaker.
Though managing money is an essential life skill, it is not taught in schools. So, we’ve got to learn the theories and tricks as we handle them and use them. Here are 12 tips the rich follow to save money. Follow them and see how the numbers in your account grow. Remember, it takes patience and time. The effort and self-control will be worth the result definitely.
#1 The 24-Hour Rule
Being humans is really difficult. We easily get caught up with the appearance of things and take hasty decisions. It’s not very healthy. Today, almost everything we desire and need, require a cost on our part. Wanting something is not an excuse. It should be a necessity. Therefore, instant decisions should aren’t that good. We should always think twice about what we’re spending money on.
This is called the 24-hour rule and the rich abides by it all the time. They take nearly a day to decide whether something is just one of your trivial wants or something that you really need. Even though they have the money to buy it, they still consider the options, whether to save it or waste it.
#2 Avoid Debt By Using More Cash
People prefer credit cards as they are easy to carry and less in number. But you have to remember, every time you use a credit card, you’re robbing your future self. It’s wise to use cash instead of credit cards to pay for small purchases. The rich always keep some cash with them to avoid debt as much as possible.
#3 Stick To Your Budget
Budgeting is a great way to pre-determine where to spend your money. This is way better than wondering where your money went afterward. Don’t just make a budget just for the sake of it. Stick to it and financial freedom will be just ahead. The 50/30/20 rule is a great way to budget your money; 50% on essentials, 30% for shopping, hobbies, etc, and send the remaining straight to your savings account.
#4 Spend On Necessities
Being overly prudent and saving too much will only make your life miserable. The smart way is to not waste money on unnecessary things. Invest in work outfits, a better laptop, or a convenient car.
#5 Invest To Save Your Time
Sometimes people get caught up with trivial home repairs or looking after kids that consume a lot of effort and time. Time is just as precious as money. So, to save time, focus on investing rather than spending it.
What’s life without a little adventure? Surely adventures cost a lot more than it used to in our grandparents’ time but it is still necessary. Shopping isn’t really a healthy kind of adventure. To add memories and improve your health, invest in going to the gym or skydiving, or other enriching experiences.
#7 Bills Before Rest
We all have fixed expenses. They always acquire a huge amount of a person’s income. Paying them off first before focusing on extra expenses will give you a clear head start on how to spend the rest fruitfully.
#8 Frequent Annual Sales
Sales are exciting indeed. Though we think we are saving money there, we end spending more money on non-essential things just because they are presented at a lower price. It’s not very healthy for your pocket. As a remedy, make your shopping list in advance and get the big buys ticked from a sale to save money.
#9 Invest In Your Health
If anything could lift up your mood, that is something you’re passionate about. So, invest in things that make you happy – if your budget allows you at the moment. If not, wait till you save up enough to proceed with your passions.
#10 Initiate “No Spending” Days
Don’t spend money on the things you can do yourself. For example, cook for yourself and if you really want to, eat out once in a while. This is much easier for those who are good at saving.
#11 Save Every Penny
Change can become a headache sometimes because of its amount. It’s not very convenient to carry around but if you use every penny you drop in your bag – and eventually forget about – to pay for coffee or snacks, that would minimize your minor expenses. After all, a penny saved is a penny earned.
#12 Repair Before Discarding
Sometimes it’s hard to let go of things and sometimes you just wait for things to break to get rid of them. Either way, unless something is much beyond repair, push back the idea of discarding. There’s enough trash on the earth right now and you wouldn’t want to become another irresponsible human.
If you follow any other money-saving tips, don’t forget to share them with us in the comments!