Regardless of whether your dream is to change your car, buy a house, start your own business or travel the world, the first thing you should consider is how to save money for it.
Will you ask for a loan at the bank? Are you looking to have an extra income? These are the most frequently asked questions when you begin to decide how you are going to raise the money necessary for your goals.
The answer is only one and it is simple: you have to do proper planning.
While having a financial plan is crucial to the success of your venture, understanding the basics of money management will give you a solid foundation to build the foundation for what you want. Starting at the beginning: save.
Take note of these essential tips on how to save money, as they will help you start on the path to your goal, in good financial health. Below you will find these highly relevant points:
Learn about financial management Make your own budgets Evaluate your possibilities according to your resources Reduce your expenses Negotiate to save money Separate your personal bank accounts from commercial ones Eliminate high-interest debts Cover yourself against unpredictable expenses Look for offers, promotions and special prices Plan with austerity Set real goals Save money by bartering Become a fan of DIY Take advantage of social networks Use cash for purchases Seek a lot of information about your goals Use your credit cards wisely Get an alternative source of income Learn to invest Choose the savings method right for you Saving money is the goal, but time counts too
1. Learn about financial management
Financial education is essential to know how to manage our finances, even more so if you need to know how to save money.
What you should focus on the most is to start saving and, for this, the financial administration has all the answers.
We recommend this video that will put you on the right path to be able to realize your dream of your own business, the long-awaited trip or the financial well-being that you want to have:
2. Make your own budgets
Budgeting is an important part of any activity that involves money, so if you haven’t created a budget yet, now is the time to do so.
And, for that, there are several ways, from an old-school pen and paper system, to the use of budgeting software that allows you to manage your household costs, in addition to your business finances. Thus, you will be able to control your various sources of income, all in one place.
You can also use a combination of the two or other methods that work for you, as long as you start on a budget and stick to it.
Remember: budgets are dynamic, so feel free to adjust as you go.
3. Evaluate your possibilities according to your resources
What are your goals? Let’s give you an example, in case you want to save to have your business, study what your current situation is like.
While some will tell you that if you want to start your own business, don’t immediately quit your day job, others will advise you to go one way or the other.
Evaluate what your financial and emotional resources are to get through a stressful situation, in either case.
A middle ground is to practice efficiency habits in your business, optimize workflows and the time you spend on each thing. That is, start developing your venture in your free time and on weekends until you see if it is working as you want.
If you take this path, only the moment you can replace your fixed income with your earnings: quit your job!
Adapt this reasoning to each objective and draw your personal conclusions on how to save money according to the resources you have.
4. Reduce your expenses
As you create a personal budget, you should keep track of your daily expenses. If an expense is not essential, then cut it. For example, it may be part of the morning routine to have coffee for the commute.
But making your own coffee and taking it in a cup instead of stopping halfway to buy one will help you save cash after several weeks of work.
Review your monthly expenses and eliminate those that are really unnecessary. Here are other considerations:
- Do you use your gym membership often enough to justify the cost?
- How much can you save by buying basic items in bulk?
- Would it be cheaper to use public transport, taxis or transport services than to have a car?
Take advantage of technology and take your budget with you. Budgeting apps can help you keep track of personal and business expenses from wherever you are.
Managing money with the help of technology is the most efficient way to do it. You will see how saving money quickly becomes a habit!
5. Trade to save money
Only half of consumers negotiate prices when they make a purchase. Even if you find a good price online, some services allow you to negotiate with some sellers.
When you buy items in person, pay attention to the way you make a deal. Negotiating usually works best when you can see the person face to face. Here are some strategies:
- Ask if there is a discount when you pay with cash.
- If you notice a flaw in an item you want, like a loose button on a shirt, ask if there might be a discount because of it.
- Ask for a discount when buying in bulk.
6. Manage accounts separately
Whether you want to save to start your business or to move house, try to separate the savings from the main bank account. A wise tip is to avoid mixing your business and personal accounts.
This financial advice may seem basic, but you’d be surprised how many people get it wrong and make the process of saving something difficult to carry out.
For example, becoming a business owner is not just getting out of the garage or basement of your house and renting a commercial space. You really start your business when you open your own business account to better control your money flows and expenses.
In this way, you will know exactly how much you have to start saving and allocate money to reinvest in your own venture.
7. Eliminate high-interest debt
If you don’t already know how to save money, this is a good start!
Having high-interest debt is an additional financial burden that you don’t need when you start saving. Calculate how much the interest on the loan is costing you each year and compare it to the interest you are earning on any investments you may have.
If the difference is substantial, it may be wise to pay off those debts immediately. Keep in mind that high interest debt can also affect your credit.
This is a great way to save money and thus have more resources for the goal you have in mind.
8. Cover yourself against unpredictable expenses
You probably already have auto insurance and homeowners or renters insurance to protect some of your largest personal assets. Once you have a business, it’s wise to protect your assets as well.
The easiest thing to do, if you already have a good working relationship with an insurance agent, is to simply let them know about your new situation. If you’re running a business from home, for example, at the very least, you may need a broker to cover the computer equipment used in your business.
If your business involves inventory, you’ll probably want it covered by business-paid insurance. And if you have employees, you’ll also need workers’ compensation insurance and liability insurance.
Although this type of expense may seem excessive to you, it is a great tip to save money, since it guarantees coverage for unexpected expenses.
9. Look for offers, promotions and special prices
Thanks to the Internet, today we can have all the information in our hands and in real time for product offers, special promotions, discounted prices and discounts.
It is also very profitable to take advantage of annual subscriptions to services, courses, work platforms, etc., as well as special sales days: Black Friday or Cyber ​​Monday, for example.
This is a simple option to start saving money in which you only have to invest a little of your time.
10. Plan frugally
When planning an important goal, it’s easy to get excited and a bit out of touch with reality. Somehow, this can get you into serious trouble.
The best advice for this moment is to keep things as basic as possible for as long as possible.
If you have a company, lean towards hiring part-time help or independent professionals; If you are saving to go on a trip, do not buy luxurious things. These are some examples that you can take.
11. Set realistic goals
One of the keys to start saving is to make a goal plan in the short, medium and long term.
This can help you better understand what your possibilities are to have the financial resources you need in a certain amount of time.
Again, training is a great help. Read about SMART objectives, learn to establish your strengths and weaknesses and define your goals with that clear data.
12. Save money by bartering
We are used to paying for everything we need, but there is another option: barter.
Bartering was a popular way of doing business for hundreds of years. It recently lost its popularity, but it is still a viable option.
If you don’t know how to save money, this is an easy alternative that is within everyone’s reach, especially today, thanks to social networks and sites dedicated to the subject on the Internet.
So if you need something, find out if there is someone in your community who is willing to help. In return, you can provide them with a free product or service.
13. Become a fan of DIY
To save money, start with the DIY ( do it yourself or “do it yourself”). There are sites on the Internet that allow you to create your own resources, learn how to repair things in your house or car, a craft or a new skill to apply in your home or business.
You know that labor is expensive, so if you can take charge of improving the appearance of your home or your business, you will be greatly reducing your expenses on gardeners, painters, etc.
If you don’t know how to save money, this is a great option to start!
14. Take advantage of social networks
In all social networks you can find people who teach saving tips and financial planning. Also, there are offers and promotions that will help you save money.
The platforms are free to use, and a smart way to use them is to build relationships with entrepreneurs, potential customers, and people who share your interest in financial education.
Of all the social networks, use the ones that are easiest for you to manage yourself and you can take advantage of them and relevant information to learn how to save.
15. Use cash for purchases
Try to pay in cash as much as you can, as this is not the right time to accumulate debt.
Take advantage of sellers who offer a cash discount, as small discounts really add up when you’re still not sure how to save money.
16. Look for a lot of information about your goals
If your idea is to save to start a business, connect with universities. In these institutions they have excellent business development programs and business incubators that help and advise entrepreneurs to start or make their ideas come true.
This is a way to save money by avoiding consulting or mentoring, plus it helps to have a different vision of your business and a lot of information.
Use technology to search for data about your goals, you will surely find other people who have carried out a plan and have managed to save money to achieve it. Experiences are a valuable source of information.
17. Use your credit cards wisely
Credit cards are a great tool for saving money if you use them wisely.
With them you will have open credit if you do not have cash and its good use will add a score to your credit history.
When saving money for your goal, consider what your needs are in the future… having available credit may be one of them.
18. Get an alternative source of income
If you still don’t know how to save money in a short time, we tell you that there is a way in which investing time offers you good extra earnings.
Currently, thanks to technology, there is a wide variety of jobs from home that you can do without strict schedules, which at the same time allow you to develop new skills.
You can also earn money online by working for pages, performing different tasks such as taking surveys, playing games, selling products, etc.
19. Learn to invest
Money has the ability to make money if you invest it wisely. Although saving is the first stage to have capital for your business, expanding your perspective to the world of investments can allow you to increase your economic resources much faster.
Do some research and choose simple financial instruments that you can find in applications today and that allow you to have a fixed or variable income to increase your savings.
Of course, evaluate your level of risk and invest your money taking into account that your objective is savings.
20. Choose the right savings method for you
There are many ways to start saving and you have to choose the one that best suits your needs.
For example, the Kakebo method, of Japanese origin, teaches you to organize your expenses into categories thanks to a meticulous record of all the money you use every day.
The 70/30 method forces you to reserve a third of your money for savings, while the 52-week method is progressive and allows you to reduce your expenses and increase your savings gradually.
Choose the one that best suits your expectations!
Start today with these saving tips and you will see results very soon!
Remember that time is money. The sooner you start applying these tips, the better for your economy and your financial future.
From the tips that we have shared here, choose the ones that you can adapt to your business, keeping in mind that the basis of everything is planning.
Every second that you spend without applying these tips is equivalent to wasting time and diminishing the potential money you could save.
Lastly, one of the most important things when it comes to saving is to evolve your financial mindset and move from saver to investor. If you are interested in taking that step, we suggest you read our article How to invest money? 10 tips to generate profits, an introduction to the world of investments that can help you a lot to advance your financial goals.
