Saving is never an easy venture, it is rather a very difficult task. In fact, it is a lot easier and pleasurable to spend because the world around us is designed to make us spend even on things we don’t need.
Saving is a skill you keep learning and platforms like koloPay makes it easier to save. With easy-to-use, well designed applications and different incentives such as high interests on saving or discounts on goals you’re saving towards, one is certainly more encouraged to save more.
This post is an extract from Dave Ramsey’s ‘the-secret-to-saving-money’ blog post enumerating few ways to save more ;
Practical Ways to Save Money
Imagine how your life would change if you suddenly had money left in your monthly budget. What would you do with that cash over time? Beef up your emergency fund? Pay off your car? Finally take the vacation you’ve always dreamed of?
It can happen! Just take stock of your spending and identify areas where you can save. When you make a few tweaks to your expenses, you could be surprised at how much money you have left in your budget.
1. Get rid of your debt.
Monthly debt payments are the biggest obstacle to saving money. It robs you of your income! So, get rid of that debt. The fastest way to pay off debt is with the debt snowball method. This is where you pay off your debts in order from smallest to largest. It sounds intense, but it’s more about behavior change than numbers. Once your income isn’t tied up in monthly debt payments, you can finally use it to make progress toward your savings goals.
2. Cut down on groceries.
Most ‘budgeters’ are shocked to find out how much they’re actually spending at the grocery store each month. Save money on groceries by planning out your meals each week and taking inventory of your pantry before you head to the store. This will help prevent you from overspending and wasting food. And think about cutting back on snacks and junk food that can send you over your budget!
3. Cancel subscriptions and memberships.
Chances are, you’re paying for multiple subscriptions like Netflix, Spotify, gym memberships, trendy subscription boxes, or Amazon Prime. Cancel any subscriptions you don’t use regularly. If you really miss one, subscribe again—but only if it fits into your new budget.
4. Buy generic.
In most cases, the only thing that’s better about brand-name products is the marketing. Generic medication, staple food items, cleaning supplies, and paper products cost far less than their brand-name, marked-up competitors.
5. Spend extra or unexpected income wisely.
When you get a work bonus, inheritance or tax refund, put it to good use. You’ll be better off using those funds to pay off your student loans or credit card balance than stashing it away. If you’re debt-free, use those extras to build up your emergency fund.
Bonus tip: If you regularly receive large tax refunds, adjust your paycheck withholding so that you bring home more money in your paycheck each month.
6. Automate your savings.
Save money without thinking about it. Set up your bank account to automatically transfer funds from your checking account into a savings account every month. Or, set up your direct deposit to automatically transfer 10% of each paycheck into your savings account.
The sixth nugget is a good place to close and it is basically addressed by the Autosave feature on the koloPay app, it allows you set auto-debit on your ATM card to your kolopay account. AutoSave allows you save a fixed amount of money daily, weekly or monthly.