How To Save More Money

“A penny saved is a penny earned”, said Benjamin Franklin. You might be tired of your parents asking you to save money all the time as saving money might sound like an ancient or traditional mantra. Moreover, with the sky rocketing prices of essential items, any amount you earn might look like peanuts. However, the recent economic meltdown has inculcated a sense of responsibility in the present generation who have started feeling the need to save and that too in a big way. Nevertheless, the frequent question faced by most of the people is how to save more money? Everything looks like a necessity and it becomes quite difficult to draw a line between necessities and desires. If you too have questions on how to save more money, then here are some money saving tips that will teach you to differentiate between your needs and desires and will help you save more money. Read on to learn more about them.

Money Saving Tips

Monthly Budget

It is a good habit of maintaining or planning a monthly budget for yourself. A written plan will remind you of the length of your blanket and how much you can spread your legs.

Cut Expenses

The key to saving is cutting down on your expenses. You should be able to draw a line between necessities and desires. Prepare a list of items which you can’t do without before you step out for shopping. In this way you will spend only on necessary items and not indulge in unnecessary expenditure. Give up on the membership of a club or gym which you have not been using since ages. You can also think of cutting down on your telephone and entertainment expenses and other such irrelevant expenditures that add on to your monthly spending.

Open Up A Savings Account

Opening a savings bank account and earning interest is one of the best ways by which you can save more money. If you have extra money at your disposal, you may unconsciously create new expenses. Therefore, it is advisable to search for a bank that offers a higher ‘annual percentage yield’ (APY) and open a savings account with that bank.

Avoid Credit Cards 

Though plastic money is the need of the century, it is better to keep away from the credit cards. Though the cash back bonuses and other pay back schemes of credit cards are tempting, keeping too many cards especially ones which ask for annual fees are indeed a repository of debts for you. Therefore, it is advisable to carry only one credit card, and that too one which does not charge you any annual fee.

Buy Non-Perishable Items

Buy non-perishable items in bulk that will meet your needs for few months. Items like toothpaste, toilet paper and shampoos can be stocked up. Purchasing these items in bulk will prove to be much cheaper than buying them in small quantities and that too very often.

Save On Electricity

Try and conserve energy by cutting down on the use of electricity. Make it a point to use electrical appliances only when required. Remember to put off the lights, fans, air conditioners and other appliances when not in use. Also, make use of energy efficient appliances if possible. These steps will not only save you emoney, but will also help you conserve a lot of energy thus contributing to the environment as well.

 Use Public Transport

With metro rail connecting all the major cities and the bus services improving every day, it is advisable to use public transport both for long and short distance travel. Using public transport will save you enough money every month and will also help protect the environment by reducing sound and air pollution.

Second Hand Is Not That Bad

We generally have a bad impression about anything pre-owned and we look down upon the idea of re-using used items. We spend a great deal of money in purchasing new stuff and other household items that we use. You can cut down on your expenses by shopping at auctions and consignment shops.