Good advice & tips on saving money

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Saving Tips

Here, we’ll consider five brief, yet important tips to save at home, make the very best of your domestic budget and achieve the highest possible levels of savings.

This is not designed to condemn you to a deep austerity, but rather to aid in cutting back on all that is unnecessary, because often we do not even realise it. With a little care, we can identify those things we do not use or that are totally expendable, and yet still cost us money.

However, everyone should be able to adapt these tips to save and make cuts necessary to their way of living, because much of it is totally dispensable and only required by some.

Know your costs

Keep a written record of your income and expenses. This is the first basic step to savings. Put in writing that you are generating revenue and how and what you spend. The more detailed the concepts and the amounts of money, the better results that will be obtained.

Pay only for what you use

Avoid unnecessary charges, such as gym, clubs, magazine subscriptions, cable, collections etc. There are many people subscribed to these services, but due to time constraints, they do not take advantage of them. Obviously, there is no use having all these expenses if you don’t regularly use the products or services that create a monthly and ongoing cost. Identify unnecessary expenses from your monthly budget and cut immediately.

Avoid impulse purchases

Stop and think about and record what you will really need and you’ll begin to realise that many of the purchases you make every day are irrelevant, unnecessary products. Definitely go to the shops with a list in hand, as it makes you focus your attention on what you really need.

Record your income and expenditure, so when you make purchases throughout the month, you will look at your monthly budget and notice areas where you could improve more.

Try things and see the results

If you feel that your telephone, water or gas bills are very high and want to achieve some reductions, try different things in different months, and compare results. For example, changing traditional light bulbs to energy saving light bulbs; not leaving the computer on if it is not in use for a long time; not leaving the taps open unnecessarily or dripping; make calls during off-peak hours if they are not urgent, etc.

At first you will notice that the savings from these practices are small but after 6 or 12 months the sum of all those little savings can be significant.

Buy a piggy bank

Little used today, but the idea of having backup savings at home is still a good idea. It is very important to have the money for life’s unexpected expenses, such as the car failing or the washing machine or television breaking down, payment of fines or medical advice or any other incident.

Moreover, it is always useful for the savings to not only be devoted to emergencies and contingencies, but also something fun like a holiday or a “treat”. Remember, that if you regularly spend your total income, it is more likely you’ll end up in financial trouble because any contingency cannot be organised quickly and this mismanagement leads to many problems and headaches.

And finally one last additional advice that applies to almost everything in life: common sense. Use your head and think twice or more when you assume responsibilities for long periods of time, especially when it comes to purchasing and debt concerns. Have an accountant to help you sort through any aspects that you might be worried about and need some expert opinions on, especially when it comes to savings.

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