Managing your money is important if you want to save money.
It sounds obvious, but spending less is often the key to saving money.
Taking the time to analyze your incomings and outgoings will enable you see where your money goes each month.
21. Examine your outgoings
Look at your outgoings, and see where your money goes each month.
- What are your largest expenses?
- Could you reduce them?
Knowing this will help with managing your money.
If you’re spending almost as much on takeout coffee as your car payment, or you eat out more times than you do at home, then there are some obvious ways for you to save money.
22. Which stores / places do you spend the most money in?
Understanding where you spend the most money will help you to determine how you can cut back, making managing your money much easier.
- Are you really be spending more on coffee than on paying your credit card off?
- Do you spend more on clothes than food?
- Is it time to change your car to something that gets better gas mileage?
- Should you get the bus to work instead?
- Are you spending more on lunch than rent?
23. What non essentials or luxuries could you cut down on?
- Beers after work?
- Movies twice a week?
- Eating lunch at a restaurant Monday to Friday?
By reducing these sorts of spending, you’ll soon notice the difference in your bank account at the end of the month.
24. Check your credit card rates
It’s a good idea to check your credit card rates.
Even if you’re a loyal customer, you might still get a better deal elsewhere.
- Remember, credit card companies want to make money, not friends.
Why not see if you can get a lower interest rate or additional benefits by changing your credit card?
25. Check your insurance policies
Check your insurance policies to make sure that you have the cover for the things you need.
- Have you got the right amount of cover?
- Are you insured for things you no longer need or do?
- Could you reduce your spending on insurance without affecting your cover?
- Have you spoken to other insurance companies to see if your cover could be cheaper?
26. Pay back high interest loans and credit cards first
It makes sense to pay back your higher interest loans and credit cards first.
This means that you will pay less interest, and so save money.
The money you save from not eating out 3 times a week could mean your credit card is paid off a lot sooner.
27. Keep an eye out for offers
Although we told you to be careful about offers, if you keep an eye out for the things you know and like, you can make substantial savings.
- Know when the clothes shop you like has a sale?
- Know that a colleague got a good deal on a new car just by asking for a discount?
- Know that some shops use social media to advertise their offers?
Why not see if you can get a better deal by looking, waiting, or simply asking?
28. Don’t get carried away with offers though
If you’re constantly bombarded with special offers and discounts, you might be tempted to spend money you can’t afford on things you don’t need.
In addition, you probably won’t buy what you need, when you need it, because you’ll be waiting for a better deal.
Whilst waiting might be a good approach for a vacation or new car, it’s not the right approach for kids’ clothes or food!
29. Rename your savings account
If you’re saving for something in particular, why not see if you can rename your savings account?
Calling your online savings account or the bottle you put your change in something like:
- New Car
- European Holiday
- Wedding Fund
Will mean that you’re more likely to put money in it.
You’ll be able to visualize it better too. Perhaps a certain amount of money will equate to your wedding dress, flights, or the wheels of your new car.
30. Ask for a better deal!
If you’re talking to a salesperson face to face, or over the phone, why not ask for a better deal?
The worst that can happen is they say no.
If you’re buying an expensive item, whether it’s designer clothes or a car, never be afraid to walk away.
You’ll be surprised at what a “quick chat with the manager” can do for a price.
Saving money can be about spending smarter, as well as spending less.
We’ll be posting our next 10 money saving tips next month.