3 Simple Savings Hacks You Can You Use Everyday
Unfortunately, there is no secret formula to saving money.
Unfortunately, there is no secret formula to saving money. Bills and other expenses always need to be paid, and sometimes it can be difficult to put money aside for saving when those funds could be put to good use right away. Investing is a common saving strategy – you are spending money now on stocks to try and acquire more funds at a later date – but it brings its own set of risks.
Yet while there is no foolproof way to save, there are some steps you can take to put away money for yourself and your family. Review these tips for saving money and determine a strategy that works best for you:
1. Pay in cash, especially with big bills
Paying for items with a credit card may seem like the fastest and easiest way to make purchases. However, there is interest on a card, and if you are unable to pay the full total of your bill at the end of the month, you will end up owing more money down the road. By only using the cash in your wallet to make purchases, you are ensuring you have accounted for the full cost of the item, and once the transaction is done, you no longer have to think about paying it back.
"Knowing the right time to buy can save you a lot of money over the course of the year."
To take this step even further and really maximize your savings, go to the bank and request higher denomination currency, such as $50 and $100 bills, instead of withdrawing $1s, $5s, $10s or $20s. Those bills will stay in your wallet longer, as you will be less likely to make an impulse purchase when you have to break a $100 to do so.
In The Denomination Effect, published by the Journal of Consumer Research, analysts found there is a psychological factor associated with larger bills that intimidates many people and discourages them from spending. Statistically, spending is lower when money is represented in larger denominations. Acquiring larger bills can help you use that cash as a strategic device to cut down on spending.
2. Map out your purchases
There are certain times of the year when specific items go up in price, and other times when they drop. Knowing the right time to buy can save you a lot of money over the course of the year.
For example, because the most-watched television program every year is the Super Bowl, played in early-February, stores often hold sales on new TVs in January, U.S. News and World Report stated. By shopping for your new flat-screen then, you can save a considerable amount versus buying a TV later in the year.
Search ahead for the times of year when discounts take place so you will be ready to buy when items are on sale.
3. Treat yourself to a gift
Buying items for yourself doesn't seem like a good way to save. In the case of gift cards, however, you can actually earn more from your dollar. Many websites sell gift cards to various businesses at a discount, Forbes reported. Paying $25 for a $50 card to a grocery store gives you instant savings at a location toward which you were already budgeting money. In fact, you can sometimes use the gift cards to buy more gift cards, increasing the savings you receive.