Are you under the constant impression that you are barely making ends meet? It is almost impossible to treat yourself with something expensive, as you seem to have just enough money to get by through the month.
Also, you have no major expenses on a daily basis, you pay the bills, you eat out maybe once or twice, and then you get your monthly subscriptions and maybe one or two new items. Yet, you still end up wondering where all your money went.
Furthermore, it has definitely occurred to you that you might need to get credit at some point, either for a new car or for an apartment, and that requires a positive credit history. All of these are valid and troublesome concerns, especially if you don’t have at least $1000 in your savings account.
So, here, we will go over how to increase your savings and become more prudent, as well as why saving money is tricky but necessary.
I got it, we save money today to prepare for a better future.
We are all fully aware of the reasons why it is important to save money. For starters, it is the first and most important step towards financial independence.
The second reason is that we need savings in the event things go south for some reason, or if we need money to buy or repair a piece of equipment that is necessary for our work or of us to earn money.
Lastly, you need to know how to properly manage your finances in order to have a positive credit score, which will make it easier for you to get a loan if you ever need one, and you will also have lower interest rates when returning that money.
But saving money always seems to be so difficult…
One of the main reasons why saving has become more difficult is due to micro transactions and monthly subscriptions.
If you want to save money, you need to give up a magnitude of smaller things rather than one or two of them. In other words, any attempt to save money by cancelling one subscription for example seems meaningless, since you aren’t saving a lot to begin with.
Another reason why we struggle with saving cash is because of our daily habits. We have developed certain tastes, and certain rituals that we tend to indulge on a daily basis, so very often, saving money warrants a fundamental change and people are not really fond of them in general.
Moreover, if you have a lot of bills that require immediate attention, it is difficult to think about saving money, when there are clearly more pressing matters.
So, spending money provides us with short-term positive feelings that we have kind of grown addicted to, whereas saving money does not. So, we are in a way stuck in this hedonistic treadmill, and we just continue to live on paycheck to paycheck.
What can I do to start saving money?
Now let us go over some of the techniques, habits, and tricks on how to start saving money on a monthly basis. If you somehow manage to adhere to all of these tips, you can look forward to a significant amount of cash. However, we are all aware just how difficult it can be to drastically change your life, so you can also introduce these new methods one at a time.
1. Say no to extended warranties.
Whenever we buy something we want to make sure that the item is high quality and that it will serve us for months or years to come. As a result, we are very often tempted to buy extended warranty, which is, in a way, a waste of cash.
First of all, if you are not particularly clumsy and if you do not cash in on your extended warranty, then there is no need to get one in the first place.
Second, we hate using the same thing for more than a year, so it is very likely that you will buy a new item or gadget even if the old one is still working.