We often spend money subjectively, instead of objectively. Emotions are what make us human, however, they are also what makes us spend money. Handling finances with emotions is a bad idea.
Research when the sales start
Find out when to get the best deals. Need a TV? Wait until January, when last year’s models are discounted to make room for the new ones. Looking for Christmas gifts? Wait until Black Friday.
Shold I cut-up my credit card?
Many people play the credit card rewards game. You can easily gain airfare and cashback for spending… But it’s only free if you don’t spend more, to get those rewards.
Maybe you are the type of person who always pays your credit card balance in full at the end of each month, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game and know how to make credit cards work for you.
If not, you may want to consider ridding your life of the burden that credit cards bring.
The average APR for people who carry credit card debt is well over 15%. Banks jumps for joy when you don’t pay off your balance because banks get rich from all that interest.
Some banks have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation or credit score any favours. If you’re prone to late payments or have a large balance due on your cards, cut them up!
Without proper self-control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use the money you have for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).
Save money and stop eating out all the time
Everybody loves eating out, however it will almost always cost more than cooking a meal at home. While the average cost of eating out varies dramatically depending on the restaurant you go to, most restaurants charge a massive mark-up price on the items they serve.
Shopping for food
When shopping for food, make sure you’re not hungry! A great way to combat those in the moment cravings is to make a shopping list and stick to it. Making your own breakfast and lunch and dinner each day will save you a fortune.
Be skeptical when something seems like a deal
Free shipping if you spend just another $9? Step away from the shopping cart. It’s so tempting to spend a little more to get something for ‘free’ but is it really ‘free’ and do you need it?
Cancel subscriptions for non-necessities
The best way to save money on subscriptions is to go through your bank statements line by line, and Identify all of the reoccurring subscriptions and how much they cost. Cancel the ones that you no longer use or feel are too expensive. Downgrading subscriptions can also save you a handful of money.
Monthly subscriptions and memberships can drain bank accounts each month, sometimes without you even realising. One of the best ways to save money is to look carefully at gym memberships, streaming services, subscription boxes and anything else that you automatically pay for. If you haven’t used it in the past month, it probably belongs in the bin. Also, be on the lookout for any free trials you forgot to cancel. Most free trials automatically renew and charge you the full price.
How do I get stuff for free?
There are plenty of ways to get stuff for free or have fun on the cheap. “One man’s rubbish is another man’s treasure“
- Use Facebook, preloved and ebay. Before you shell out for things like furniture or baby gear, check out Facebook marketplace to see if someone local is looking to get rid of something similar.
- Downloading App’s for freebies. Plenty of restaurant chains offer freebies or BOGOF deals for downloading their apps. You can always delete them after you’ve used the discount.
- Happy Birthday! You can score birthday freebies if your big day is coming up
- Check out your local library or second hand shops. Why buy new when you are only going to read the book once?
- Trade/Borrow goods or services with friends Learning how to barter can help you get what you need without spending cash.
Should freelancers have an emergency fund?
Whether you are a self-employed freelancer or you work for a company. Everybody should have an emergency fund. Ideally, emergency funds should cover 6 months of your everyday living expenses. The emergency fund needs to be in liquidity, so if you need to use it fast, you can.
Before saving, it’s wise to pay other obligations first, such as loans, credit cards or other debts.
What is financial freedom?
Financial freedom is when you have a constant flow of cash from your assets to cover all your living expenses and needs.
When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. The trick to becoming financially free is actually very simple. You just need to make sure that you are spending less money than you are making.
This can be achieved with a plan. While not every person will accomplish financial freedom, anyone can achieve this success, regardless of income level or background.
The changes above may seem small, however over a set period of time, the changes you make will turn into something big.
Following the simple steps above is a great start to making your money work for you. Saving money helps one become more financially stable, resulting in more freedom. Should you need more money, look into side work which you could do in the evenings and weekends to clear up any debt and hopefully in time you will be happier.