Essentials

Pound Wise Penny Wise

Leave the foolishness to the fools. 6 Simple ways to save money and feel in control of your life. Money matters are part of being a grown-up. Those that stress less about their money situation simply have a grip on that part of their life. Mind you, it is important to get a grip of your finances before it gets a grip on you. You maybe employed, an entrepreneur or an executive, your lifestyle habits dictate how you spend or save money:

Here are six habits that will get you on the way to being Pound Wise, Penny Wise; essentially financially free –

  1. Create a clear and transparent budget
  2. Avoid unnecessary fees at all costs
  3. Cut down on casual spending
  4. Substitute drinks with water
  5. Do shopping in bulk
  6. Keep cash on you 

Create a clear and transparent Budget:

Knowing how much you earn (what comes in your bank account) verses how much goes out gives you a clear picture of your income. Creating a budget from that will subconsciously limit you from spending what you don’t have. Using spend tracking tools such as apps will allow you to see quickly if you are getting out of hand, especially if you have access to credit facilities.

Avoid unnecessary fees at all cost:

With a clear picture of your budget and spend. Start looking to save on small fees that may be hidden in your accounts statements. Start scrutinising your monthly bills for additional charges, subscriptions, memberships or even value added services that don’t add value to you finances. Another great idea is to avoid multiple ATM withdrawals, limiting those trips to weekly instead of daily, saving you a quite a bit. Another idea is to withdraw money at shopping tills if there are such services in your area.

Cut down on casual spending:

Your life being what it is, generally revolves around what you want it to be and the freedom to buy what you want when you want. However the trade-off is quite the contrary if you intend to become financially free. Grabbing that juice, coffee, doughnut or even after work drinks or dinner may seem to fulfill the drive of freedom but all those little buys add up. Without keeping track of them, you will definitely wonder were all you money went.

Substitute drink with water:

This maybe a little tricky to conquer in this modern society, as the culture of fast-food and instant gratification is engraved in our culture. But this can be one of the most easiest  way to add some positive in your bank account and also to your health. The next time you want to grab that soda drink, opt for tap water instead.

Do shopping in bulk:

Growing up, your parents ensured that the family had enough supplies to sustain their needs till the next month-end, thats if you grew up in that kind of homestead. Nowadays things have changed, the modern society prefers everything on the go. Perishable items such as bread and milk make sense but bits and pieces of an unplanned trips to the shop will have you finances begging for mercy before you know it.

Keep Cash on you:

Financial institutions have driven the message that it’s cheaper to swipe your card than use cash, which is true based on the cost ratio. However, financial educator, Danny Kofke cites a study which shows that we spend 12-18 percent more when we swipe than when we carry cash, due to the emotional connection.

Maybe you might have developed your own money saving tips and would like to share, leave some comments  below to help others save as much as possible in areas that they never thought off, thus being paramount to true financial freedom.

Original article appeared in Valet

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