Here are 20 best money-saving tips, that can save your valuable hard-earned money.
It is important to everyone, for rich and poor or high earning and low earning. Start saving money the moment you start earning.
1. Buying Car
To own a car is a necessity to many in different ways.
Always try to buy a used car, which is 3-4 years old. It will reduce the cost of the car almost to 50% from the new one. Once you drive out a new car from the showroom, 10% of the value will be depreciated and every year 10% on an average. A car which is 3-4 years old in good condition will be a good choice.
If you are planning to buy a new car, wait for the stock clearance when new models are coming to the market. This will be from June or July every year depending on your place or make of the car. Dealers will reduce up to 10% of the original price. You will be getting a brand new car at a discounted rate.
Never buy a new car when a new model is launched to the market.
2. Grocery Shopping
Cut down on groceries. Buy items what you really need. Plan for a week or month and buy only the essential items. If you buy without planning, you will end up in buying many items which is not required, and it will lie in your store or refrigerator for long. At the end you will just throw away the expired items.
Buy regularly used items or the items which is having a long expiry, in bulk whenever there is discount or promotion. Sometimes the difference will be marginal, if you sum up yearly or over a period of time, you will be saving a huge sum on this.
3. Avoid health club and beauty saloons
Do not take membership in health club. You can do exercises at your own to maintain health. Avoid regular visits to beauty saloons. Simple tips you can learn and do at home. This is an exception if your profession requires so.
4. Clothing
Be selective in clothing. You can save if you avoid branded clothes, quality clothes at cheaper prices are available. If you wait, branded clothes can be bought at discounted price during sale or promotion.
5. Skip Coffee shops
Do not buy coffee from expensive coffee shops regularly. If you calculate for a month or year, it will be huge sum. You will be wasting valuable money on coffee. Instead prepare yourself.
6. Cut down dining out.
Do not have lunch or dinner from restaurants regularly. Prepare and eat at home or you can carry to work. You can buy groceries for a month and make food at home with the same amount you spend for a week at restaurants. You can prepare healthy food as per your taste.
We are not talking about, dining out occasionally with friends and family.
7. Pay in cash and get discounts
Many people tend to buy household items in installments. You will fall easily in the trick of advertisements or salesmen and feel that you will be paying installments in small amounts. But if you see the total amount paid out, it will be much higher. Instead plan, save the money and pay in cash.
You can also ask for discounts while paying in cash, different discounts will be available. This can be followed while purchasing entertainment tickets like movies, sports, museum, parks etc.
Also get the benefit of students, children, senior citizen discounts.
8. Buying books
Do not buy books to read. You can take it from a library, better to have membership in a library if you are regular reader. Find people with similar interests and share the books.
9. Health care
Prevention is better than cure. Preventive health care is important, do regular health checkups to find out early symptoms and take treatments. This will avoid severe health problems and huge medical expenses.
10. Go generic
Do not buy branded medicines. Pharmaceutical companies are charging 10 to 20 times of the real cost, what they are spending for branding, advertisements, commissions etc. Instead search and buy generic medicines. You will get same quality and will be saving money.
11. Save on electricity
You can save money on electricity by following simple tricks. Use energy efficient appliances, LED bulbs, dimmer switches etc. Weatherproof rooms and house, it will maintain indoor temperature and minimize the use of air conditioner, heater or fan. Fix the leakage of pipes and taps and thereby save water and electricity.
Make use of the natural resources like solar energy.
12. Buying mobiles
Do not buy mobile phones immediately when a new model is launched. Wait for few months and you will find a noticeable difference in the price, on an average a drop of 5-10 % every quarter.
Do not buy mobile along with subscriptions or in credit. It is trap and you will end up in paying almost double the price.
13. Lower your telephone or mobile bill
Make use of technology and control the amount you are spending on call charges. Now a days you can have audio or video call anywhere in the world free of charge or subscribing for services at a nominal charge.
14. Save on internet subscription, TV, newspapers, and magazines
This is the area you will be spending unnecessarily. For the internet and TV, subscribe to the package based on your needs. Try to get free entertainment available.
It is not necessary to subscribe for printed newspapers and magazines. Instead subscribe for online editions. In this way you will be saving the environment and resources.
15. Get rewarded
Many retailers provide reward schemes. Subscribe to the loyalty programs. You will earn reward points or cash back offers once you shop. It can be utilized while shopping.
16. Unsubscribe
Cancel unwanted subscriptions. Once you receive trendy messages or mails, you will be tempted to buy the items even if it is not in need.
17. Do it yourself
A significant amount can be saved by like this. Try to do or fix things by yourself. You can learn basic things from YouTube. Fixing the taps, simple stitching, fixing small electrical problems, laundry, cooking etc. are few examples.
18. Credit Cards
Many financial experts advice not to have credit cards. From my personal experience if you use it wisely, credit cards will be beneficial. Pay off credit cards in full each month.
You will be getting discounts at various places – restaurants, movies, groceries, fashion, amusement parks etc. Also, will get the benefit of cash back offers, free entry to airport lounges, discounts for travel tickets like flight, trains or buses.
19. Pay off debts
Pay off your debts as early as possible. If you are paying 10-15% interest on a debt for a long term, you will end up in paying a large amount of money that can be used for your needs or saving. Instead of spending or depositing in the bank the additional money you receive as bonus, incentive or gift, use it wisely to pay back the debt.
20. Plan
Last but not the least plan your budget. Have short term plan as well as long term. Save for your future needs like emergency fund, health, children education, house, retirement etc.
Do not try to save what is left behind after spending. Expenses will never end. Even if it is a small amount save first, then plan on the expenses with the remaining.
Follow 50/30/20 rule – spend 50% of your income on your needs, 30% on wants and 20% saving.
Note: All the above might not be applicable to everyone. These are in general and most efficient tips to follow. It will vary depending on your situation, health, place of living etc.
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