Growing your savings is not an easy feat. It takes discipline, hard work, and some professional guidance. Fortunately, many money experts today aren’t selfish with their knowledge. They share saving tips on various platforms, helping people to grow their savings and achieve financial security.
It’s never too late to change your mindset and spending habits and achieve financial freedom. Sometimes, all it takes is thinking outside the box and a little encouragement from financial experts. Here are 4 helpful tips given by financial experts. Use them to grow your savings.
1. Save First Then Spend
“Don’t save after spending, spend what’s left after saving”—Warren Buffet, Investor and CEO of Berkshire Hathaway.
Saving before spending helps you cultivate financial discipline. That way, you achieve your saving goals within a short time.
Many people find it hard to save first then spend, but with a proper strategy, it’s doable. A simple trick is to have a standing order. As soon as money lands in your bank account, a certain amount can be deducted automatically and transferred directly to your savings account.
2. Apply the “Deferred Gratification” Approach
Best Money Moves CEO Ilyce Glink extensively talks about deferred gratification when discussing spending and saving. According to her, many people tend to buy things to meet their psychological needs and end up buying them expensively.
She advises that the best approach to take before buying something is to wait for a week. When the second week rolls around, check whether you still need it. If you can defer a purchase for an extended period, you’ll realize you don’t even need the item at all. And if you decide to buy it, you’ll be more strategic and end up not overpaying.
3. Pay Off Your Debts
Paying off all your debts is the best investment you can make, according to Mark Cuban, an Entrepreneur and Investor. Some lenders give discounts to debtors who pay loans early or on time. For instance, if you pay your student loan early, you might qualify for forgiveness (for a federal loan) or receive an actual discount. Prioritize paying all your high-interest loans early–such as credit card bills and even auto title loans. The last thing you want is paying penalties because you made late payments.
4. Learn How to Cook!
Americans eat out between four and five times a week, on average. But eating out is expensive, because people spend $67 a week on takeout. When you cook your own food, you save money and also eat healthier. You can learn how to cook and buy fresh food in bulk to save money.
Julia Child said you should only use real ingredients when making meals, and you can only do this when you cook at home. She also said that there’s no point in paying someone to cook for you when you can learn to cook and save that money.
So, as you can see, saving doesn’t have to be an uphill climb. Once you know how to manage your money, you only need to change your mindset to achieve financial security.