Looking for the best ways on how to save money fast? Whether you’re saving for a goal such as a house deposit, car upgrade, or just to boost your bank balance, there’s plenty of easy tips and best practices to save money without totally sacrificing your lifestyle. Here are some that you can get started with right away.
Clever Ways to Save Money Fast
It’s a lot more motivating to stick to a goal the faster you see results. Now, these ideas won’t necessarily make you an instant millionaire, but they can quickly grow your savings. By following a plan and having discipline, you may find yourself with a new attitude towards spending and more money saved. Here are tips on how to save money fast.
1. Create a Savings Account You Can’t Dip Into
One of the most effective ways to take control over your savings is to put your money into an account that you cannot easily access. You can have multiple accounts for different purposes, one of which is a term deposit for your savings. From an account where your income goes into, set up automatic transfers of a portion of your salary to your term deposit.
Penalties are usually charged with a term deposit if you take out your money early. This will help avoid or altogether stop your impulse spending and make your savings locked away until the term ends.
To grow your savings even more, arrange with your bank to roll over your term deposit when the term ends. You could add extra savings that you’ve accumulated to the lump sum and start a new term deposit.
Another savings trick that can work is to ask your bank to add extra steps before you can withdraw money from your savings account. Some of these steps could be to have you come into the branch to do it in person or block your ability to withdraw using ATMs. These hurdles to your money will help to make you pause and ask yourself whether you really want to spend the money you’ve been working hard to save.
2. Know Where Your Money Is Going
Have you ever checked your bank balance and got confused where your money went? You may have a clear picture of certain expenses such as your bills, rent, or mortgage payments but it’s also possible there are some costs you don’t notice like your subscriptions and other fees.
Find out exactly where every cent goes by selecting a time period of your spending. For example, for about three months or so, make note of everything you spend. Put them into categories such as bills, rent, food, childcare, transport, mortgage payments, fitness, subscriptions, and entertainment. This will help to identify which of your spending habits has to be prioritised, changed, or get rid of altogether. You can also use a tracking app like PocketBook or MoneyBrilliant to go through your transaction history.
After you’ve figured out where your money goes, work out how much your monthly income is on average. Take a look at your payslip and focus on your net income. It is the amount that goes into your bank account after tax and super are deducted. Subtract your average spending from your average income. This is the money you’re left with which can be put either towards clearing your debts or increasing your savings.
3. Reduce Your Spending
One of the best ways to cut spending is to have no-spend days on your ‘wants.’ You can aim for some no-spend days each month or even have an entire month not spending on things you don’t necessarily need. Simply be adamant and decide that you are not going to buy anything at all.
Not only do you save money on no-spend days, but it can also help change your mindset on your spending habits in the long run. It will train you to start coming up with creative ways to meet your needs, rather than just buy new things.
Have you noticed that if you hit the grocery store when you’re hungry, you end up impulse buying? Avoid shopping when you’re hungry. You’re vulnerable to overconsumption if you shop on an empty stomach. Researchers found a shopper who was starving spent as much as 60% more on non-food products than shoppers who weren’t hungry.
Another way to avoid impulse buys is to make a list of items you need to purchase. Stick to the list and don’t get swayed by other things you see along the way. Also, keep a list of upcoming big purchases so you can time your shopping strategically when these items go on sale.
4. Look Out for Recurring or Automated Expenses
Cut out subscriptions you don’t use everyday such as food boxes, TV packages, magazines, and paying instalments on gadgets. These are all regular costs you should seriously consider letting go. Ask yourself if you need to use it everyday. If the answer is no, it’s time to remove it from your bills.
Also, unsubscribe from email newsletters and catalogs from your favorite store. You may get excited when special offers or coupons are mailed to you. But the truth is, all of the promotional offers will just make you want to buy something. Avoid these temptations in your life.
5. Budget Well
Creating a budget is a sure bet for success. The key to budgeting is it has to be tailored to your current situation and financial capability, and it has to be aligned with your future goals. Consider the following:
- Net income. How much do you earn?
- Recurring expenses. When and how much do you spend?
- SMART goals. How much do you have to save?
- Personal situation. What stage of life are you at? Are things going to stay the same or do you expect things to change?
First, determine how much of your income you have to put aside on a regular basis to reach your savings goal. Put that amount away from, perhaps in a high-interest savings account, as soon as it goes into your transaction account.
Work out your recurring expenses and make these fit within your budget. It takes time to adjust to your new spending habits, but better to start now and reap the rewards sooner.
With a starting point, work towards improved money management habits by focusing on your end goal. Track your progress and hold yourself accountable with whatever the outcome may be.
6. Pay Off Your Credit Card
Always check your credit card statement for the due date and make sure you pay on time, or better yet, before that date. By doing so, you’ll avoid paying late fees or extra interest, and it also helps to keep your credit score healthy.
A simpler way to pay is through direct debit or auto-transfer from your bank account each month. Arrange it for the day after your salary goes in, so you have enough money for payments.
Pay as much as you can. Paying only the minimum will result in a lot of interest and years to fully pay off your debt. If you make higher repayments each month, you’ll pay off the debt faster. If you find it difficult to pay the minimum amount, talk to your bank, credit provider, or a free financial counsellor right away to take action early on.
Also, ask your credit provider to reduce your credit limit on your card. Reducing your credit limit will help to avoid the temptation to overspend.
7. Plan Your Meals
Dining out can be expensive. By planning your meals, cooking, and eating at home, you save a lot of money, eat healthily, and enjoy great meals. There can be leftovers too. Simply put them in the fridge, then heat them up the next day or for packed lunch.
Keep the receipts when you grocery shop to know the exact costs of the meals you usually make. Compare the costs when you alternately buy cheaper ingredients and update your grocery list for more affordable recipes.
When you plan your meals for the week, you can take advantage of supermarket flyers as supermarkets put their products on discount on certain days. Take note of which on your grocery list are included to make the most of the discounts.
Try also to be smart about using cooking oil. One way to cut down oil is to switch to spray rather than a bottle. With spraying, you’ll go through your oil more slowly and save more bucks.
8. Set Financial Goals
Having a set goal in mind is usually the starting point of many accomplishments in life. Setting a goal will give you something to work for, whether it be your first home, a new car, or even a holiday.
This should also hold true for your financial goals. Start with an initial goal in mind and apply a methodology to expand on it. An effective way to define and set your financial goals is by using the “SMART” goals criteria, which stands for:
- What do you want to accomplish?
- How will you know when you’ve accomplished it?
- Is your goal possible and achievable?
- Is the goal relevant to you?
- Time-Bound. By when will it be accomplished?
Always write down your goals whether in a planner, sticky note, in your phone, or on your laptop. It will serve as a reminder and keep you accountable. In a study conducted by Dr. Gail Matthews, a psychology professor at the Dominican University of California, concluded that a person is 42% more likely to achieve his goals if he writes them down regularly. Dr. Matthews stated, “My study provides empirical evidence for the effectiveness of three coaching tools: accountability, commitment, and writing down one’s goals.”
9. Use Apps to Make It Easy
Budgeting and saving don’t have to be overwhelming. You can take advantage of free budgeting apps you can find online to make money management easier. These apps make tracking your regular spending simpler so you can see where to make little changes and improvements. Here are some of the best budget apps on the market we have reviewed.
- Your bank’s app. Designed to help their customers, some bank apps have features where the extra amount from your transaction account is transferred into your linked savings account.
- Good Budget. This app uses a system where your money is split up into different virtual envelopes with each having a purpose such as bills, rent, or savings. You can only use the money in the envelope based on its purpose.
- It links up to your bank accounts to automatically track your expenses and categorise them such as shopping, groceries, and transport. You can then set a budget for each category and the app notifies you if you’re getting close to your limits.
- It shows you all your assets and liabilities such as bank accounts, loans, investments, and insurance so you can have a better understanding of your finances.
10. Sell Things You Don’t Need
Decluttering every year takes away the visual disturbance and gives you a sense of accomplishment. It also doesn’t hurt to put your pre-loved goods on sale. Selling your secondhand items is a smart way to get rid of the things you don’t need while you earn quick bucks.
The classic way to do this is to have a garage sale. Clean up your items and sort them into categories like household, sports gear, linens, etc. Set it up with visible signs and clear price tags.
There are also popular online places to list your items. You can put your secondhand goods on Classifieds, Facebook Marketplace, or GumTree to reach more buyers. You have options here: you can join local groups or pages or make your own page to promote.
11. Identify Your Weaknesses
Financial weaknesses can vary from person to person. What may seem easy for someone can be stressful to another. But as you try to improve yourself, you can turn these weaknesses into strengths by tackling them head-on.
Social media is a platform to connect to your community. But it also creates an unreasonable expectation for yourself relating to where you live, your relationships, or your travel plans. If you are more concerned about what everyone is doing or buying, you may also be tempted to buy more than you can afford. And this can turn into a financial weakness.
Being aware of your weaknesses early on can help to catch yourself and put it back on the right track. Whether you’re struggling with overspending, investing, or taking control of your finances, you can overcome these money-related fears by focusing on what really matters in life.
12. Set Life Goals to Keep You Motivated
Setting short-term or long-term life goals is an important step towards financial security. Planning gives you an opportunity to review your goals, review your progress, and update them. Having your goals fit into your overall life plan can help you stay on track so much easier.
Additional Ways to Save Even More Money
- Take a positive mindset. Consider saving money as “paying yourself” to make the process more rewarding and motivational.
- Vision board. Create a visual representation of your savings goal to make it feel more real.
- Put copies of your budget everywhere. This will be a constant reminder and will reinforce your will to save.
- Be flexible. If an unexpected cost comes up, whether it’s a broken household item or hospital visit, it’s really important to deal with it as soon as possible before it gets worse.
Sometimes the unexpected happens. If you need Payday Loans for your funding needs, you can turn to Quickle. We can assist you with your loan application by finding you the most suitable lender and financial solution. Upon approval, your funds will be transferred to your account within hours or the same day so you can use it for any purposes that need urgent attention. Apply now!