21 Ways to Save Money

The path to wealth or poverty is determined by your actions. What do you do when you make money, however little? Do you save it or squander it? If you save money, you are on your way to wealth but if you keep squandering the little you make, poverty is knocking at the door and the earlier you realize that the better for you. Below are 21 ways to save money:

Join a Cooperative and Thrift:

This is one of the very effective saving methods for people who cannot discipline themselves financially. It denies you immediate access to your cash and it has a lot of advantages, such as:

1. The ability to pull resources together from various individuals to take advantage of idle funds. This enables them to loan to their members at a cheaper rate than other financial institutions.
2. They acquire assets for their members at a very low cost because they can negotiate properly because of volume. Of course, you will agree with me that if you are buying an item, you will pay more than someone buying 100 pieces of the same item.
3. Other financial institutions regard the facilities granted to cooperative societies as highly secured, and this enables cooperatives to get loans from those financial institutions at a very low rate.

You can save money daily, weekly or monthly with them, and your savings will grow over time.

You can join PiggyVest here

Reduce Liquid Cash.

The more cash you carry around, either in the form of physical cash or cards, the greater is the tendency to spend. It is highly recommended that you reduce the amount of cash with you, and this will help you to stop spontaneous buying. I have bought things not needed because I had excess cash in my pocket. Have you ever noticed that something could look so attractive to you the first time you see it, and you feel like buying it but couldn’t afford it because the cash was not available? And by the time you look at it again, the attractiveness is completely gone and the desire to have it is no longer there.

Do some of the jobs yourself. You can encourage your children to do some of the household chores rather than employing a housemaid. You are helping them to be responsible, and at the same time saving money for their other needs.

Make a Budget. This is very important if you are going to be able to increase your savings. If you don’t have a budget, you are likely going to forget your priorities. I have seen a situation where I forgot that school fees would be due and spent all my money on something else. If I had prepared a budget, that wouldn’t have happened.

Preparing budget will help you to keep your finance under control. Read our blog on the “The Four Golden Rules Of Personal Finance”

Look for a Cheaper Market. You can still buy quality things cheaper if you take the time to survey your environment. Some markets are so expensive, not because of quality, but simply because of premiums paid for rent and other expenses. Some are expensive due to the class of people patronizing them.

Reduce your Energy Consumption. Reduce your wastage in the form of electricity, gas, water, etc. Switch off all electrical gadgets such as air conditioners, television, sound systems, and others when you are not at home. It is also important to turn off the lights in the daytime except where it is practically impossible. This will reduce your monthly consumption, which will consequently increase your savings.

Cancel or Reduce your Subscriptions. You can reduce your monthly subscriptions on paid television, the Internet, mobile phones, and newspapers. It is economically wise to cancel what you don’t need and stick to the most important, or the must-haves.

Stop Gambling. Gambling will only make you poorer, and it is high time you stop it. Gambling can come in the form of a jackpot or pool, cards, or even in the form of “TEXT N100 TO WIN A CAR, THE MORE YOU TEXT, THE MORE THE CHANCES OF WINNING.”

Bulk Buying. One of the “21 Ways to Save Money” is by buying in bulk. You can get great reductions in cost by buying in bulk. For example, you can buy your meat, chicken, tomatoes, pepper, and other food items that will last you for weeks in bulk. I have seen people grouped to buy a cow and share it to reduce their costs. I have seen ladies coming together to buy baskets of tomatoes to reduce their costs. Bulk buying is a very good way of saving money.

10.

Plan your Vacation. It is important to plan your vacation properly to increase your savings. There are so many ways you can reduce your costs while on vacation. For example:

Using trains rather than cabs
Group tours rather than individual tours
Hotels with breakfast
Cheap tickets and lodging

11.

Reduce Eating Out. Whenever possible, eat at home rather than in eateries and joints. You can as well take your lunch to the office. This will reduce wastage and help you to be closer to your family.

12.

Stay out of Loans. Staying out of loan will help you live a better life. I have discussed this in length in a book titled “Saving Money Amidst Challenges“. It is important to reduce your loans to reduce your interest charges.

13.

Avoid Late Payments. Where it is impossible not to borrow, avoid late payments because late payments attract penalties and interest. Late payments also affect your credit rating, and the penalty can be huge.

14.

Good and Cheaper School for Kids. Do not enroll your children in a school because of class. Make sure you can afford it, and you will be able to cope with the other associated expenses such as excursions, exchange programs, donations, and others. People are so proud these days to the extent that some parents do ask for an increase in school fees to look big.

15.

ATM Cards. If you cannot discipline yourself, stop carrying your cards in your pocket. Keep them at home.

16.

Online Purchases: If your bank is online, there is a high probability of online purchases. If you are not disciplined, you could spend most of your hard-earned income buying things that will not be useful to you. Avoid spontaneous online purchases to increase your monthly savings.

17.

Alternative Market: It is advisable to always look for alternative markets especially the local market before importing items. You will lose so much by sending your items by air or through courier services. You can get the same quality at almost half the price if you buy locally rather than importing.

18.

Medical expenses: Can you take out healthcare insurance that will help you save money on medical expenses? Can you start exercising, eating healthier, and cutting back on items that cause your body harm to save money?

19.

Fuel or gasoline: How much do you spend per week on fuel for your car? Use your thinking cap. Can you see carpooling? Can you see walking to get milk or bread rather than driving in town? Use your taking cap and think along the same line when considering travel time

20.

Household items: Did you know that you could learn how to save money by considering household items? Sure, you cannot use banana leaves as a substitute for toilet paper, but you sure can save money by buying sale items, using coupons, or buying cheaper brands.

21.

Accessories: Do you buy the accessories that are necessary, or do you buy every accessory that comes your way? How much do you spend on accessories and how much can you cut back and still live your normal life?

This “21 Ways to Save Money” is not exhaustive as there are other methods as well. Review them and pick those that are suitable for you. Be consistent and you will smile at last