Saving money may seem like an impossible task, especially when you think about all the things you have to do, from paying bills, helping your friends and family whenever the need arises, investing in a certain project, or even splurging on something nice for yourself once in a while. The problem, however, is that most of our financial woes result from poor spending habits. The little low-priority things we spend our money on leave us in financial trouble.
There are simple things you can do to save a few bucks here and here. Remember, a little goes a long way. It’ll come in handy on those tough rainy days when you most need it.
1. Make Coffee at Home
A hot cup of coffee brewed and flavored just as you like at your favorite coffee shop seems irresistible. This is especially so during those cold chilly mornings when you need something to kick-start your day. Coffee is one of the beverages consumed by billions of people worldwide daily. While people have varying preferences, Perfect Daily Grind suggests that most espresso and coffee are made with 100% Arabica beans.
Coffee has numerous benefits, including boosting weight loss, improving brain function, and supporting heart health. Instead of buying coffee daily, invest in a coffee-making machine and get your morning cup in the comfort of your home. The key to making the perfect coffee lies in the grinds-to-water ratio.
2. Reduce Spending on Vices
Everyone has some form of financial vice draining their accounts. This could be excessive borrowing and spending, smoking, one of the most common and expensive addictions, drinking, gambling, eating out, and take-outs. Statistics show that the average smoker spends roughly $1,000 yearly on cigarettes alone.
Before you go any further, break down your budget and track your spending habits for a month to establish where your money goes. Replace any harmful habits or vices about financial management with productive and positive financial habits. You don’t have to buy every stunning dress or shoe you come across, and you can equally prepare a simple home-cooked meal. Additionally, while quitting vaping or smoking may be ideal, investing in an e-cigarette that’s reusable may be a more affordable option. Just keep in mind that while e-cigarettes are 100% tobacco-free, according to the FDA, they still contain tobacco-derived nicotine.
3. Schedule Maintenance to Avoid Major Repairs
Car repairs are an unfortunate necessity to keep your vehicle running, but you don’t necessarily need to pay an arm and a leg every time you need to fix your car. According to Your Mechanic, parts like your driveshaft ought to be replaced every 75,000 miles for optimal performance. Scheduling routine maintenance like changing your oil and opting for replacing old parts with used parts rather than new ones can help to keep car repair costs down.
4. Set Goals and Open a Savings Account
It’s said that failing to plan is planning to fail. Ask yourself what you hope to achieve through the savings initiative. Secondly, establish both short and long-term goals. For instance, if you want a car or a home, take a step back and illustrate in detail the steps you need to take to achieve your dream.
If you have a fixed monthly salary, consider setting up a standing savings contribution each month. You can also set the spending limit on your card so you don’t overspend. If you don’t have a steady income, open a dedicated savings account for your business to separate your expenditure from savings.
Those routine expenses, however inconsequential they may appear, can easily land one in financial trouble. While a cup of coffee at Starbucks may seem like a good idea, you’ll be shocked if you aggregate how much you spend on coffee per year. Add to this alcohol, smoking, and other routine expenses people make, and you’ll realize where you’re leaking financially.