Whether you’re planning for retirement, saving money to buy a house, or trying to get out of debt, it’s clear that we must all make personal finance a priority in the coming years. This is due to the fact that the economy took a huge hit during the COVID-19 pandemic, and we haven’t yet dealt with the full consequences of this.
Thankfully, there are plenty of methods out there for those looking to better their financial situation. For example, you could keep a lookout for the many ways in which you can start saving money in your daily life. Here are some great ideas to get you started!
Take care of your car
On average, we spend approximately 10-15% of our annual income on our car, making it one of our more significant yearly expenses. The reasoning behind this is clear, access to a working car is essential in the current world, especially if you’re no longer working from home and have to commute once again. It also means that you’re sure to struggle when your car breaks down, especially if you cannot afford to repair it. However, you can prevent breakdowns by keeping on top of car maintenance. For example, if you drive a Ford, you could reach out to a Ford Authorized Service Centre that can help you carry out maintenance tasks that increase the lifespan of your car and keep you safe on the road. To find out more, click here.
Stick to your budgets
We’re often reminded about the importance of budgeting, especially if you’re trying to get a better handle on your finances. Despite this, a recent study found that only 67% of adults actually stick to their budgets. The issue with budgeting often lies in accountability, as it’s easy to go over budget if you don’t try to reign yourself in when you’re out and about. Luckily, you can remedy this by installing budgeting apps onto your phone, which will send you an alert when you’re about to overspend. They’ll also provide you with an easy way to monitor and track your spending, making it much easier than trying to figure out the math in your head.
Diversify your income
Diversifying your income isn’t necessarily a way to save money, but it will help you grow your bank account and improve your financial stability. As a result, you’ll feel less like you’re living paycheque to paycheque. This means that you’ll be able to send more of your surplus cash over to your savings account or work on paying off debt. Again, there are plenty of ways in which you can begin to diversify your income. For example, you could look into ways in which you can generate passive income in your sleep, such as through investing. Alternatively, you could look into starting up a side hustle.
Bad money management and unrestrained shopping habits often go hand in hand – but by shopping local and supporting smaller brands, you could actually save a lot of money in your daily life. For example, local grocery stores and butchers often offer much better value for money than supermarkets. Their produce is also often much fresher and tastier as it isn’t packaged to stay on the shelves for weeks on end. While going from shop to shop may take more time, it will be much kinder to your wallet. This also means that you’re helping a small business to grow and flourish, which means your money is going towards a good cause.
Stop getting takeout coffee
Saving money often means becoming more frugal, meaning it might be time to kiss goodbye to your daily Starbucks. While it tastes great, and a few dollars here and there might not seem like much of an issue, it can quickly add up. As a result, you should aim to cut down on the amount of takeout coffee you buy on the way to work, viewing it as an occasional treat instead. There are plenty of delicious coffee recipes you can try out at home so that you don’t have to sacrifice your caffeine fix to save money!
Focus on paying off debts
We all deal with financial problems from time to time, but when it comes to debt, it’s better to pay it off sooner rather than later (when you are able). This is because it reduces the amount of money you’ll have to pay in interest – and it can also help you reduce any stress you may be dealing with as a result of your financial woes. Factoring debt repayment into your budget is a great way to get started, but you may also want to consider debt consolidation loans.
Have an emergency fund set aside
From time to time, you may be stuck with an unexpected bill that lands you in hot water. For example, this could include legal fees, medical expenses, or home maintenance costs. To protect yourself financially, it’s crucial that you start putting aside some of your money that you can then use in an emergency. To keep track, store this money in a separate bank account from the rest of your savings.
Cancel those subscription services
From Amazon to Netflix, most subscription sites offer free trials of their services to generate custom. However, 48% of users forget to cancel free trials once they expire – and many people pay for subscription services that they rarely (if ever) use. This means that if you want to start saving money in your daily life, you should make sure you go through your monthly expenses and keep an eye out for any subscription services you forgot to cancel. It’s also worthwhile canceling those you don’t use – as you can always get them again should you miss having them in your life. If you live with flatmates, it will also be worthwhile to consider splitting the cost of these subscription services, as there is little point in every member of the household having their own Netflix or Amazon account.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)