A PENNY SAVED…
If you’ve heard this saying used once too many, then you’re not alone! But the truth is, it’s right on the money. The best way to accrue wealth is to save and invest in a combination of short, medium and long-term options. As we mentioned in a previous article, diversification is a key element to a successful investment portfolio, but how do you start to save pockets of money to direct into these portfolios?
There are hundreds of saving tips out there but there was an article written on thesimpledollar.com just months before the recession of 2009 that had some simple, fresh and ingenious suggestions to saving money. We’ll share a few now and give you chance to mull over and maybe apply them if you like them!
We’ll aim share a few at the end of each month.
1. SWITCH BANK ACCOUNTS
The concept is simple: switch your bank accounts to a bank that respects your needs. You shouldn’t be spending your hard-earned money on maintenance fees – you also should be earning some serious interest on your checking and savings accounts. Interest is always dependent the prime rate, so it will fluctuate, but it’s always a good idea to reassess your accounts periodically to ensure that you’re still getting the very best deal for you personal banking needs.
2. TURN OFF THE TELEVISION
How’s this for a new idea?? One big way to save money is to watch less television. There are a lot of financial benefits to this: less exposure to guilt-inducing ads, more time to focus on other things in life, less electricity used, less need for DSTV and so on. It’s great to unwind in the evening, but seek another hobby to do that. Read a book, cook a nice dinner, do puzzles with your kids or take a long walk with your spouse. You’ll feel better for it and spend less money!
3. TURN A CRITICAL EYE TO YOUR ‘COLLECTIONS’
Most people collect something – what do you collect? Stamps, watches, sunglasses, coins, shoes, toy trains, and limited edition comics – the list is endless. If you want to get serious about your spending habits then ask yourself these questions:
- Is it something that consistently brings you joy?
- Is it something that you just do out of habit?
- Does the collection itself have value?
- Could you perhaps “trim the fat” from this collection by getting rid of duplicates or getting rid of the items you no longer use?
- Also, could you perhaps cut down on your spending on that hobby?
Focus on cutting back the things you don’t feel strongly about and you’ll find that you have more money to invest.
4. SIGN UP FOR EVERY FREE CUSTOMER REWARDS PROGRAM YOU CAN
Even if you rarely shop at that place, having a rewards card for that place will eventually net you some coupons and discounts.
Here’s the basic game plan for maximizing these programs: create a Gmail address just for these mailings (so you don’t get spammed on your normal email account), collect every card you can, and then check that account for saved points or cash whenever you’re ready to shop. No matter how small the amount may be, it’s money for jam!
5. MAKE YOUR OWN GIFTS INSTEAD OF BUYING THEM
Just five minutes on Pinterest and you’ll have more than enough ideas that you can make at home, quite easily and inexpensively! These make spectacular gifts for others because they involve your homemade touch, plus quite often they’re consumable, meaning they don’t wind up filling someone’s closet with junk.
Even better – include a personal handwritten note with the gift. This will make it even more special than anything you could possibly buy down at the mall, plus it saves you money.
Have these five points given you some fresh ideas? We hope so!