5 WAYS TO START SAVING MONEY

Blog - July 8, 2020
5 WAYS TO START SAVING MONEY

Saving money comes with discipline. However, we understand that students often need to make ends meet with very few resources. Therefore, if you are getting serious about saving money, we have a useful word for you: budget.

The idea of putting together an emergency fund or going off credit may sound daunting, if not entirely impossible. Especially as a student. Nevertheless, remember that other have done it too. Just remember that everyone starts somewhere.

Then, how do you start saving money? You may ask.

Understand Your Spending Habits

Most people have too many expenses. Expenses come in many shapes and forms. Some of them are small, big, or even mandatory. Before you know how to save, you need to know where to save from.

Start paying attention to how many times you eat out with friends, go for a quick coffee break, or find yourself overspending in parties.

Make sure to track your spending habits for a couple of months to understand where you are at.

Find Solutions

So, after tracking your spending habits, you have noticed your monthly coffee spending is too high. Great, it is time to find cheaper ways of getting this delicious coffee into your system. You may decide to only drink coffee at home and bring some to school or look for other energy drink alternatives, like tea.

Spending too much in gas? Maybe it is time to consider using public transit for a while. Or find a person you can do carpool with and share the costs for gas.

Sell Things You Do not Use

Sometimes you may not have enough room to start saving or make investments like a coffee machine to start saving.

To help you get started, you can sell the things you don’t use anymore.

You can throw a garage sale, or sell them online. Now you can use this money to invest in things that will help you save or put your earnings into an emergency fund.

What Is An Emergency Fund

You probably heard the following before, “everyone needs an emergency fund” or “get yourself an emergency fund.” However, you may find it impossible to believe that you can get an emergency fund in the current estate of the economy.

No one said it was easy, but as long as you are getting income. You can save some money to build your fund.

Unexpected matters such as the COVID-19 pandemic will often come up and disrupt our personal finances.

It is important that you can look after yourself and your loved ones before you do anything else. Having an emergency fund enables you to do so. What is more important, it allows you to think with a cold head.

The fund will make you more likely to invest and less likely to become anxious and stressed when dealing with regular expenses.

Follow This Rule: The Pay, Save, Spend rule

Saving money can be a mental game. Be sure to overcome any excuses during your journey. There are many excuses that can be valid, especially during hard times, that may get in the way of distracting you from saving.

Therefore, next time you get paid, try using the pay, save, spend rule.

First, pay all your bills and regular expenses. You may be able to set automatic payments that deduct the amount when your paycheck rolls in.

Now, put away the predetermine amount you decided to save.

Lastly, divide what is left evenly for the remaining of the time until the next paycheck. This is now your daily, or weekly allowance.

If an unexpected expense throws off your financial plans, you can determine whether it is appropriate to save the same amount you expected.

We hope these tips have brought you some clarity when it comes to saving money.

Do you want to help any loved one that has a pressing financial matter? Looking for ways to send money to Iran or Canada? LUMENWIRE is the most cost-efficient platform in the market. Make your account, look at the exchange rate, and send money instantly.

Leave a Reply

Your email address will not be published. Required fields are marked *

For security, use of Google's reCAPTCHA service is required which is subject to the Google Privacy Policy and Terms of Use.

I agree to these terms.

Open chat