Wealthy personalities say it over and over. Creating wealth comes from saving. But saving is easier said than done. Saving more from your paycheck is possible if you develop some habits and become disciplined enough to stick to them. Here are a number of ways you can save more from your paycheck.
Track your expenses
You cannot reduce wasteful expenses if you don’t know what they are. It is important to track your expenses and record them. This will help give you an idea of what share each expense is taking from the paycheck. You can do it the old-fashioned way and record on paper, or you can download a smartphone app. The latter is easier as you can see it in graphical form.
One common financial mistake is operating without a personal budget. After you have an idea of where your money is going, the next step would be to optimize the expenditure. Prioritize crucial spending like medical bills, rent, and food. You can then look for ways to reduce wasteful expenditure by cutting back on eating out, going out, entertaining friends and other non-essential expenditure. You can then set a savings target per month.
Instead of letting the money hit your account then spending it, set it such that the money is deducted automatically and sent to your savings account or plan. You can instruct your bank to do direct debit at a specific date each month. Most employers will also allow you to deduct a certain percentage of your paycheck to be sent directly to your savings. Out of sight out of mind.
Take up a healthcare membership
Medical expenses can take a hefty part of your paycheck when they happen. As these expenses are unpredictable and of the irregular amount, it is best to take up health insurance and possibly a healthcare association. Advantages of health associations include medical bill discounts, prescription discounts, and emergency evacuation. Some healthcare memberships like MedCard, allow you to call a doctor for consultation at no cost.
Reduce credit card expenses
It is easy to accumulate large credit card debt in a short time as these expenses are out of sight, unlike cash that dwindles visibly. The bad thing about credit card debt is the high-interest rate that is applicable and compounded on outstanding balances.
Buying in small quantities is expensive unless you are single. Foodstuff, laundry products, and other consumables are best purchased in bulk. This will help you enjoy discounts at many stores. You no longer need to buy a warehouse club membership, bulk pricing can be found online these days.
Look for alternatives
Is the cable plan you are using the best on the market? What about the internet? You can reduce your expenses a lot by going for more affordable options. Consider calling your current providers and asking for a lower price to keep your business with them.
Save for something
It is hard to save if you have no objective. Choose something to save for e.g. children’s education, retirement, or vacation.
These are just a few ideas to help you save more of your payday funds. If you have an idea make sure to let us know below...