10 Ways To Save Money

Budgets are tight, jobs are scarce, cost of living is on the rise, all the negative indicators are going haywire. So how can you manage to save in this harsh economic climate? Here are 10 ways to save money:

1. Compare prices – the wise shopper compares prices as well as the quality of goods and services, BEFORE going ahead with a purchase.
2. Buy affordable brands – the same item may cost significantly less based on brand (yes, the same product is often rebranded and repackaged and sold at different prices). Don’t be a slave to brands; go ahead and shop around, be a smart shopper.
3. Car pool – this is an effective way to save on petrol, and by extension, save money.
4. Buy in bulk – grocery bills add up when you don’t shop in bulk. Places like Costco should be your friend.
5. Shop around for the best deals – visit those quaint tucked away stores on the side streets where you’re likely to find bargains that are unlikely to be available at the more prominent stores.
6. Force yourself to save – investigate investment and saving plan options which require compulsory monthly or weekly savings (for e.g. via salary deduction).
7. Ask yourself, “DO I REALLY NEED IT?” – when shopping for clothing, household appliances and personal effects, always ask yourself if the item being purchased is to satisfy a ‘need’ or a ‘want’.
8. Shop wisely – by items that are durable and will last; for e.g. clothing and household items.
9. Know your rights – when buying items, ensure that you’re getting a guarantee/warranty, check for servicing and the availability of spare parts. etc.
10. Demand a receipt – demand a receipt for each purchase, and keep that receipt for as long as possible … supposed you need to exchange or return it … you need the receipt. Money saved right there!

Invest In The Future – Teach Your Children How To Save

We all know that children are the future, so let’s teach our children how to secure their own futures by developing their saving habit.

Get Started…

Convincing children to do anything is challenging, much less convincing them to do so regularly. Developing a saving habit may be difficult for children because they may not understand why there is a need to save since their parents take care of all their needs. Here’s an approach to think about. Just as you save for big ticket items, help your children to set and achieve savings goals. You could make a deal with them for special “nice to have” purchases – for every portion they save, you will match it. That encourages saving and regularity!

Then, Find the Money to Save…

You may be thinking where do children get money to save? Well, as it turns out there are lots of sources. First, cash gifts for birthdays or special occasions can be saved in whole or in part. Second, encourage them to save some of their allowance and lunch money. Perhaps you can tie increases to their ability to demonstrate disciplined savings! Third, other than standard chores, maybe you can offer to pay them for special tasks and then encourage them to save all or part of those earnings. Think creatively, apply some discipline, and your children will easily develop the saving habit.

And Now, Decide Where to Save…

A “piggy bank” is always a good starting place because it develops the habit of putting money aside. Experts say use a clear glass jar so children can see the money “growing” with every “deposit”.

The real benefit to your children will come when they begin to understand the power of compound interest, which is what you can get from a savings account. Don’t forget also that long term saving is rewarded; therefore, it is good to start as early as possible.