June 3, 2023

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7 Simple Ways to Start Saving Money

7 simple ways to save money - Prime News Ghana

There’s that saying about saving for a rainy day. Saving for the times when you will need money later in the future. Just like a savings retirement plan that workers chip in some dollars into monthly for the proverbial rainy day– old age and retirement. 

We all have our rainy days. Be it money for college, medical fees or buying a house. A savings retirement plan isn’t the only way to save for a rainy day. Other saving money tips exist and each with its unique strength and weakness. 

Also, saving for the rainy day doesn’t mean saving your money in the bank only. It covers investing in companies, starting a business, buying government bonds and more. What it means is that you are setting aside some money somewhere that will come in useful for you in the future. Even if the time comes and you don’t need the money, it gives you peace of mind that you have more than enough, if the need ever arises. 

Financial institutions like reliable banks you know can show you the many paths towards saving for the rainy day. Look at some ways you can start to save some money below.

  1.  Create a List of Your Expenses

The first step isn’t looking at how much you earn but how much you spend. Spendings usually tower right over savings and even your salary. 

The list should show you what items, people, or services have taken a huge chunk of your money. You should have things like groceries, utilities, rent and the likes. Do a total of all and calculate against what you earn. 

  1. Find Alternatives You are bound to find items or services that have alternatives that cost less and even better from your list. Do this especially for your groceries. There are numerous brands of toothpaste on the supermarket shelf that are cheaper and more effective than the expensive ones you use. Most shoppers think that the price of a product determines its quality. Not in all cases.
  1. Buy In Bulk 

Do bulk purchases to save on some cash. You buy more and pay less for it instead of just picking single items off the counter and going back when you need more. You can pay this extra cash into your savings account.

  1. Buy Only What You Need 

Don’t buy out of impulse or because there is a sale going on. If you don’t need it, don’t buy it. 

  1.  Switch Off All Lights in Empty Places and During the Day

During the day, ensure all light bulbs are off. Switch off lights when you leave a room or place inside the house. Light bulbs eat up a lot of energy.

  1.  Ask Your Bank for an Automated Savings Plan 

Banks will allow you to automate your savings. That is you authorize them to regularly (daily, weekly or monthly) remove a specific amount of money at a specific time to a special account you have for a specific period or indefinitely. 

  1.  Cook Instead of Buying Junk Food 

Apart from being packed with loads of calories that can cause some serious weight gain and other health problems, junk foods are expensive. You pay for the packaging, cutleries, paper bag, which you won’t need again. Cooking and eating your food saves you money and is healthier. 

Creating a list of what you spend your money on is how you first learn to save money. And following the others are the other ways to back it up.