There are two main forms of saving money. The first one involves depositing your liquid cash in a savings account in a bank or another financial institution. The second one is cutting down on your overall expenditure to ensure that you have more disposable income. The first form of saving depends on the success of the second one because you cannot deposit what you don’t have. Here are a few great ways to save money- both through depositing liquid cash and reducing expenses.
Better ways to save money
Avoid shopping at rush hours
Prices of commodities tend to vary from time to time. For instance, you expect the price of seasonal greetings cards to be high in December than in January. Most people make the mistake of shopping for goods and services when everyone else is shopping for the same goods and services. You can easily save a lot of money when you shop during low peak seasons when demand is very low. If you have ever gone to a renowned holiday destination during peak seasons, you have an idea of what I am talking about. Additionally, avoid impulse and stress buying. Buy only what is necessary- you can make some things like gifts yourself. Where possible, buy used rather than brand new items. They will always be cheaper.
Don’t live beyond your means
One rule of saving money is examining your expenses and budgeting for only what you can comfortably afford. Don’t let the desires of your heart and body force you into a financial crisis. For example, if you want to buy a new car, start a savings plan for it instead of taking a loan now. Mortgages are good. However, it will be better if you can postpone buying a house up to a time when you can buy the house in cash.
Get a life insurance policy
Most people are yet to understand how insurance works. Insurance companies offer very flexible saving plans to their policyholders. The main savings product offered by life insurance companies is life insurance. There are several products under the life insurance umbrella, and you can always get the best one for your needs.
Deposit your money in savings accounts
Open a savings account instead of a current account with your bank or financial institution of choice. With a savings account, you cannot withdraw your money anytime you feel like as it is the case with current accounts. You are required to deposit an agreed sum of money for a specified period. At maturity, you get both your principal and interest. Be on the lookout for any perks by various banks out there and take advantage of them whenever you can.
Join a savings cooperative society, not a credit one.
Savings and Credit Cooperative societies offer flexible financial services to their members. Members are required to deposit their funds with the society and use this money as security to take a loan. The savings part is okay. It is the credit part that requires careful thought.
The most important rule in saving money is self-disciplined. I have explained great ways of saving money above. You will realize that all of them need the self-discipline to thrive. If you are self-disciplined, you will not spend what you don’t have. You will not smoke or drink excessively. You will do simple tasks yourself at home instead of hiring someone to do them. You will switch off the lights whenever you don’t need them on. You will make a shopping list and stick to it. You will also keep yourself healthy at all times. Health is wealth.