How to save money.
Saving money takes a conscious effort to evaluate your finances and make the required changes, which is the easy part. To apply the required changes is far more difficult.
Knowing how to save money isn’t enough, you’ll have to completely change the way you spend. Don’t be dismayed as even minor changes make a big difference over time.
the basics: avoid unnecessary spending and reduce the amount you spend on your needs.
causes of overspending
We buy many things (products/services) which I’ll call ‘their offer’. We don't need but buy and never use and in some cases we even buy things that we didn't want or need purely because a salesperson promoted that thing and made us feel at the time that it was a worthwhile decision. Many salespeople care less for your satisfaction than they do about their commission.
Inefficient budgeting;
not saving, forgetting about upcoming bills and paying them late. late fees kill your budget.
Have it now,
(don’t use credit, unless you can do so wisely) I do have a credit card but I pay it out before any interest occurs. Otherwise the only other reason to use credit is to invest in things that have a higher income than what the credit costs. never use a payment system of any kind to purchase offers that are not gaining value or producing an income at least required to produce and income such as a car.
Quantity;
I know people who go to the shops daily and buy the food that they are going to cook for their next meal if they shop weekly they would not only save on petrol and time, But they would also save by buying in bulk; let's say a single steak was $2 but buying a pack of 4 was only $6 they are getting the fourth one for free.
Quality:
Some things must be replaced 4 times as often as something that might be twice the price, in some cases spend a little more.
Ego.
We also pay too much for many things where a cheaper version will do the same job and even sometimes a better job. We just want the appearance of having more money.
Brand Loyalty
You still need to ask yourself: what can I get to do that job with quality at the lowest price?
Not only do businesses want you to repurchase, they also want to save money by having you advertise for them, by telling your friends or even having the production public. To do so they must have it appear as if their product is the best, even more they seek to persuade you to have a need for that product every business wants their product to be the must have product sometimes you may even find similar products elsewhere that are even better at a lower price.
Unconscious Spending
Do you really notice the $2 when you hand it over? Did you really need what you spent it on?
Price Balloons
First month free have you looked at 2 12 month phone plans one at $19.90 per month first month free and the second at $18 per month (no free month). $18 per month without the free month is cheaper by the end of the year. 3 months free often grabs our attention even more.
Wastage
Many people will not keep leftovers.
Some people will keep leftovers and still cook a fresh meal the next day and after that day when they have no space in their fridge to put the leftovers they take the previous days leftovers and throw them out.
How to regain control of spending
Be systematic, assess everything you spend money on:
Rent,
If moving can save you money (after the costs of moving) consider it.
Bills:
pay them before extra costs incur And only on credit if you pay that credit out before it incurs its own costs.
Insurance bills: If you're likely to live more than 10 or maybe 15 years don't take out funeral insurance as somewhere within that 10 to 15 year period you will have paid more than what they're going to payout. After that you're getting no more, they are just making more money off you the longer you live. car insurance if you have a new car then it is possibly a wise thing but if you have a cheap old car consider this; if you do not have a claim in 2 to 3 years the chances are you have paid as much insurance as the car is worth; let's say it's a $5,000 car if you ensure it fully it is likely that in 3 years you all of paid at least $5,000 insurance. you've now paid $10,000 for a car that is likely to be worth $3,000 at that stage if you get the $5,000 insurance you would now have a $3,000 car and $5,000 to go towards your next one.
Power - Heating takes the most power and cooling the next. With air conditioning 24 degrees is usually best in any season in winter don't set it above 24 degrees and if you can handle it, set it below. In summer 24 will still do, you don't need 22. The same applies with your fridge. Maybe you don't need to have it quite as cold as it is. Check it's temperatures and recommended food temperatures and how hot is your tap water? Remember the hotter it is the more it costs to keep it hot. Can you get more efficient lighting and use it less?
Groceries,
Don't buy them at a convenience store if you can buy them at a supermarket especially if the supermarket is only a few blocks more. buy what you need in bulk as much as possible, don't waste it personally. I will not cut a lettuce if you don't use the whole lettuce, it will rot in a couple of days to a week or so (depending on the knife that you use). As I live alone and don't eat that much lettuce I will pick a leaf off for a meal and then slice it if I want it sliced for say my tacos. It normally takes me 2 to 3 months to eat a lettuce. I hate waste (yes they can last that long).
Clothing.
Personally I buy clothing at charity stores for more reasons than just saving. Buying from a charity store gives money to the charity and stops good items from being just thrown away (environmental). You even find expensive brand clothing that looks brand new and people you meet think that you paid a lot for it.
entertainment and eating out holiday costs
If you really need to save you cut these out if keeping them is still important then if you think about it you will find many ways you can reduce those costs
New purchases
Is it impulsive? Should I think about it and decide tomorrow?
Is the reason valid? Do I really need it?
Can you afford it?
Can I get it cheaper elsewhere?
Does the brand really matter?
Is it renegotiable? (how to negotiate, read below)
What will I have to give up, that I can't get, if I spend the money on this?
Will it increase my income? (turn the savings into income, see below)
There is a lot you can save if you are determined to do so!
You will have to step into the pressure zone outside your Comfort Zone The latest model of The Comfort Zone
Saving is just one of many ways to improve your life outcome. I teach people how to maximize their lives whether it be through saving, gaining a better income, improving relationships or gaining status etcetera. You can learn to increase happiness in your life in most areas such as affection, finance, control, respect and security. I teach these things for free (by donation) if you'd like to gain a better outcome in life than where you're heading now then please start by looking at one of these two pages; happiness or persuasion and choose the path that is of interest to you. These include skills like negotiation and ways to increase your income.