There are a large number of people in the world who earn a good amount of money and don’t feel they spend that much and yet at the end of the month they are left with barely anything to save. If this sounds like you then you are likely spending too much money because you have learned some bad habits along the way. With some simple approaches, you can get your savings in order without impacting your purchases all that much.
Branded items are very successful today. If you are buying a car you tend to know that Toyota will not require lots of maintenance. If you are buying a phone you know that Samsung or Apple phones work well. On these occasions, it makes sense to buy brands. However, this thought pattern has led people to buy brands on nearly every item when it is really not required. Buying name brand toiletries or name brand washing up liquid is pointless. Bleach is bleach. Start saving money easily by letting go of brands when the name doesn’t make a difference. In the majority of cases, you will find it doesn’t matter. Even in the case of the smartphone above there are many new names emerging that have the specs that rival and surpass Samsung and Apple at a lower price.
Forget the warranty
If you do buy large items like a new speaker, a new dishwasher or a new television, it will come with a warranty as standard. However, you will be offered an extended warranty. As a simple rule, do not buy it. If your item stops working in the first year or so you may be covered by the consumer guarantees act even if you don’t have a warranty. Extended warranties are free money for the retailer because few people ever end up recovering their payment.
Shop second hand
While vintage shopping is starting to take off most people are still afraid of buying other goods second hand. Sites like eBay and others are full of bargains. If you know there is something you need for your house always check a second-hand store first because someone is always moving house and trying to get rid of items quickly.
A great way to save is to set a challenge every week. Set aside the money you need to spend and decide how much of the remainder you are going to have left at the end of the week. Give yourself a small (non-financial) reward if you succeed and punish yourself if you don’t.
Setting challenges with clear goals will help to incentivize you and make savings more achievable. One of the greatest difficulties with saving money is that it is for some unknown thing in many year’s time. Give yourself short term goals so that you get a sense of accomplishment along the way.
Learn to be patient in your shopping. The moment a new item is released is when it is at its most expensive. Do you really need it now? There are sales throughout the year and if you wait long enough whatever you want will end up on sale. Learn to be patient and let the bargains come to you.
The bus and train are amazing. They are a place where you can sit down and read a book or watch a movie. Everyone else chooses to get stuck in traffic and experience mild road rage as they wait in a jam. Choose public transport more often. It may mean you have to walk a little more to get there but that is a healthy bonus. Better yet get a bike or start to run places. This will save you money in the long run and keep you fit.