Contributed by The Lazy Trader
In a time of economic uncertainty and the cost of living on the rise, knowing where to prioritize your money can be tricky, but saving is important as it helps with long-term goals and gives you a sense of financial freedom. Knowing you have money put aside is reassuring for the future as you never know when you’ll need an emergency fund; however, saving can be difficult, and knowing where to start is essential. Here are seven of the best money-saving hacks to help you achieve financial stability.
Use a digital budget planner
You will likely be on the move at some point in the day, whether to work or on a trip to the shop, and your budget plan can easily be forgotten. A digital budget planner is the perfect solution to managing your finances throughout the day and staying within your spending limit. If you need to make any adjustments, it is also easy to change and can be modified to suit your needs. A simple app on your phone or device is more accessible and saves on creating unnecessary clutter.
Use a smash piggy bank
A piggy bank is all about discipline and consistency. Putting money away that you can’t get back without breaking your piggy bank can be daunting, especially if you are worried about your current financial situation. However, it is a great way to save money without even knowing it, and whether it be for a holiday or rent, it is impressive how far a few pennies can go. A piggy bank is a constant reminder of your financial goals; even putting a penny a day away adds up to a lot of money over time. Investing in an inaccessible piggy bank, like this firefighter helmet smash bank, where you cannot collect your money without smashing it with a hammer will give you more determination to save until it is filled to the brim.
Start the 1-cent saving challenge
The 1-cent saving challenge is a yearlong money-saving method and requires saving an extra penny every day. This will start with the first penny on the first day of the year and then increase by a penny every day; for example, 2 cents on the second day, 3 cents on the third, and so on until you reach the final day of the year. Along the way, you’ll have saved $667.95 which can contribute to whatever financial goal you set for yourself. Do this with nickels and you’ll save $3339.75!
Avoid taking money out of your savings
Although it can be tempting to take money out your savings for spontaneous purchases, remember that they are savings for a reason. Whether it be for future retirement, a mortgage, or your dream car, that money has been put aside so you can afford the luxuries you saved for. You may want some new trainers or a Saturday night out, but remind yourself that savings are there for long-term goals in life.
Invest in life insurance when you are young
Age is the most important factor when investing in life insurance as it determines whether you pay a high or low premium for your policy, as a younger person typically has better health than someone within the middle-aged and elderly bracket. A 21-year-old is a lot more likely to pay a lower premium than someone older; the premium on a term-life policy will stay consistent and not increase with age, making it much more affordable in the long run. Although it may not seem like an essential purchase for a young adult, it will also benefit relatives if anything were to happen to you as it provides them with more financial support in the case of an unforeseen event.
Shop smart at the supermarket
It can be very tempting to place unplanned items in the shopping cart when you’re at the supermarket, but you’ll unknowingly cause the total cost of your shop to shoot up; stick to your shopping list and try to find cheaper alternatives in the process. Supermarket brands are a great way to cut down on costs, especially for cupboard essentials like pasta and rice, as you don’t have to spend a fortune on necessities.
Supermarkets offer benefits from loyalty cards that can discount your shopping by huge amounts and are free to access. In addition to this, the reduced section is always worth a look, as plenty of fresh produce is suitable for home freezing and can save you a lot of money instead of paying the full price.
Buying in bulk is also a great way to save money as, usually, the products work out individually cheaper and reduce the hassle of having to return to the supermarket for a stock-up.
Pay off your credit card balance
A credit card balance can work its way down the priority list when other finances come into play; it can be a great financial support network, but it must be paid back eventually due to its negative balance. The accumulation of interest on a credit card balance can grow quickly, so pay off the balance as soon as you have the funds.