If you have found yourself reading this guide to saving money then you are probably wanting to save money for something in the future such as a wedding, buying a house or a car. Or, you might simply want to start living life each day feeling free of all financial-related stress. There are thousands of money-saving ideas out on the internet, and most of them are achievable. With this, you should do your research and work out what might be best for your circumstances. You should keep in mind that not all tips work for everyone, so you should consider these lightly.
You’ve certainly come to the right place as this article consists of an array of money-saving tips that comprise the ultimate guide to saving money. No matter whether you are saving for something big in the future or looking to make things a bit easier now, consider the tips discussed in this article to get you on the right track. Let’s dive in!
What you can expect in this article:
The Ultimate Guide To Saving Money
Invest in stocks
One of the first things you can do to save money, in the long run, is to invest in stocks, such as gold ETF, for example. Investing in stocks is a great way to make the most of your spare cash to end up with more money over time. However, it is important to remember that only some stocks and other forms of investments maintain their value over a longer period, so you have to consider what is the most viable option for your circumstances.
Investing in stocks is only really useful if you are looking to invest your money over the longer term. This requires some patience and dedication, but the benefits almost always outweigh the costs. Experts believe that there is no perfect time to invest in the stock market but maintaining your investments for longer will most likely provide higher returns.
If you are currently investing or looking to invest, experts believe that gold ETF is a great way to expand your portfolio. To sum gold ETF up in its simplest form, it is a type of exchange traded fund that follows price trends of gold bullion. So, if you were to invest your money in a share of this fund, the value of your share will increase and decrease in line with the market. It’s important to remember that investing in stocks, and gold ETF more specifically, can be a lot more difficult than some people think. Therefore, if you are considering investing, then do your research and talk to a professional first.
Many people make the mistake of saving money in cash funds in their homes; however, this is not the best option in the longer term as they could be increasing the value of their money if they were to invest in a stock. Having money laying around your house will not allow it to increase in value over the longer term. Thus, investing in the stock market widening your asset portfolio is a good way to invest your money for future savings.
Budget
When it comes to saving money, people often think a budget planner or a spreadsheet consisting of all monthly incomings and outgoings is best practice. This is a great way to work out how much money you will have left at the end of the month. Budgeting is very important when you’re saving for something specific and it works really well if you are closer to purchasing that thing. For instance, this might be a car, a wedding and so on.
We recommend that you work out what is coming into and leaving your bank account each month so you can set a specific amount of money aside each month to save. It also works if you identify what your budget is for the thing you’re buying or the event that you’re paying for. This will allow you to allocate your budget and resources more effectively so you can set aside the money for the purchase. Managing your money efficiently doesn’t have to be difficult, but it is all about great planning and allocation.
Choose an easy bank account
There are now various ways you can track your spending online and make your finances so much easier for you and your family. In the past, many people have opted into tracking and recording their expenses by having a physical book or folder. However, thanks to the development of technology and banks, there are now ways you can do this online that save a lot of money and effort. As well as being able to use spreadsheets and documents to track your expenses, progressive banking apps make this so much easier.
For example, the online bank Monzo allows you to track your spending and save money at the same time via the mobile app. Firstly, it allows you to allocate and limit your spending on certain categories. So, if you only wanted to spend a specific amount on shopping or entertainment that month, you can place a limit. Secondly, Monzo also allows you to open different ‘pots’ entirely free of charge. One of your pots could be a vacation savings pot and you could transfer money over from your current account when you have spare cash at the end of each month. One of the best things about Monzo is that you’re also able to round up your spending to the nearest dollar every single time you buy. All these small round-ups count in the end, and you can find them all in your chosen money pot.
There are many progressive online banking services that allow you to track your finances and make things a lot easier for you – Monzo is just only one example. Choosing an easy bank account with all these great features is a useful way to track your spending and save money week by week or in the long run.
Spring clean your direct debits
We can all admit that we have let unnecessary direct debits go on for too long, and these mount up over time. If you are paying a small amount each month for something you hardly use, then it might be time to get rid of it and cancel the direct debit. Spring cleaning your direct debits is a good way to go if you are wanting to save a lot of money each month.
Do you really need that Netflix account? If so, can you cancel your gym membership and start working out at home? Of course, there will be many direct debits you want to keep so it is important to consider your happiness and enjoyment in the longer term. However, we recommend ditching those direct debits that are pointless. You don’t want to throw away money each month for no reason!
Limit your activities
Many people love heading out for a bite to eat with their friends each weekend or enjoy taking a trip to the cinema a couple of times per month. However, it is no secret that these outings mount up over time. Factoring in your leisure activities into your budget and expenses is a good way to go about tracking your spending and setting a limit on how much money you can extend to your leisure each month. Forgetting to do so can result in you wasting money on pointless things and items each month.
This is why we recommend limiting your activities as much as possible and enjoying these in moderation. This should especially be the case if you are saving up for something in the shorter term as even the smallest transactions will make a huge difference on how soon you get to where you want to be financially.
Rethink how you travel
Do you really need to take the car or an Uber to work each day? One of the most stressful financial burdens on everyone’s lives is transport. This can be to and from work, out for activities and even just general errands. Cars are expensive as is fuel, insurance and so on. If you are looking to save money, ditching the car to work each day and getting the train or a bus might be the better option if this is possible for you. Rather than wasting your time in traffic and hundreds of dollars on fuel each month, you can take more time to get ready in the morning and head for the train. This ultimately depends on your personal circumstances, but it’s worth some consideration.
Final thoughts
This article has compiled some of the most effective ways you can save money in the long and short term. From investing your money in stocks and gold ETF, choosing an effective banking and money tracking service to make more effective financial decisions, there are ways you can reach your financial goal. Before you make any big decisions, you should consider the current state of your finances yourself or with your partner and work from there.
