Day-to-day spending can all add up. If you need help with your family's money management, expert money saving expert Alvin Hall is here to give you his top tips.
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Throughout our daily lives, each of us can sometimes spend money almost as if our hands are doing it with no connection to our rational mind.
Over time, each of these spends can add up to some serious amounts of money. Here are some ways to take control of this tendency and to save money without feeling deprived. Again, select one or a combination of several tips that will work best for you and your lifestyle.
Top money saving tips:
- Set a daily or weekly spending limit. Every time you spend money, place the receipts in an envelope and keep a running total of what you spend on the back of it. Carry this envelope with you throughout the day. As you approach your limit, you'll be surprised at how much your spending will slow down.
- Declare one day each week a complete no spending day. Don't use your debit card, cash point card, or credit card. Don't buy a coffee, sandwich, newspaper, or magazine during the entire day. This simple act of discipline will help you reduce the amount of money you spend thoughtlessly each week by approximately 10-20 per cent.
- Carry in your wallet only the amount of money that is your daily spending limit. It's always much harder for people to spend cash than use a credit card. Watching the amount of cash in your hands dwindle will certainly make you reduce your spending.
- Plan your purchases in advance. Going out for a bit of spontaneous shopping is always dangerous to your budget. Most of the time you will find something that you really did not need to buy, no matter how low the price was. Always think about what you are going to buy before you leave home or log on to your computer. Planning will help you to avoid temptation.
- Use the Internet to research prices and to comparison shop. Even if you don't buy the item over the Internet, use the information to negotiate a better price at a shop. If you don't ask, you don't get!
- Set a fixed budget for presents for relatives and friends so that you contain those emotions that cause so many people to overspend on gifts. Consider it your good fortune if you find the item on sale. And resist temptation to "top-up" the lower-priced present with another one. Instead, save the money you did not spend.
- Learn the sales cycles at your favourite shops and only buy certain items when they are at reduced prices. Sheets, towels, socks, kitchen utensils, and other basic household goods are routinely on sale at certain times during the year. There is no reason to pay full price unless you are impatient and want to pay too much. And avoid the temptation to overbuy when the prices have been reduced.
- Avoid overdraft fees, over-the-limit fees, late fees, and interest charges on all of your accounts. In a time when it is easy to track all types of accounts online, there are few valid reasons for incurring any of these fees. Paying them is a total waste of money that could have been used for a better purpose in your life.
- Know your financial weaknesses and develop ways to control them. The best, most practical advice will not be helpful to you if you constantly do things that undermine your intentions. Learn "tricks" that will help stop you from being your worst financial enemy, and instead be your own best financial friend.
- Spend time with your money. Money does not take care of itself, so you have to devote some time each week or month to keeping your finances in balance and to seeing how you are spending your money. Only by doing this can you begin to see where you can save, and see where you can reprioritise your spending in ways that will improve your life.
