Tips to spend less and save more

Posted on 18 de November de 201916 de March de 2023 by Carlos Martins

The key to reducing your spending and saving money is to cut back a little in all areas. Start by simplifying your life. We fool ourselves by never thinking about the total annual costs of the things we spend our hard earned money on. Spending R$60 for cell phone service may not seem like a lot monthly, but that’s R$720 in a year!

I want you to rethink your values, particularly those related to money. Focus on whether what you have determined is really important in your life and in the lives of your family members. We get so caught up in our lifestyles that we fail to realize that we’re spending too much of our money on things that don’t even fit our value system.

So let’s give you some tips on things you can do to save and save money. Check out!

Stop buying unnecessary things

I’m not talking about intentional purchases for necessary items. I mean, strolling through the mall, window shopping, or browsing online stores with nothing specific in mind, just looking for great bargains and things that happen to fall into your imagination. This type of “buying” is a very dangerous thing to do.

I’m not suggesting that you never buy anything new, but that your spending becomes a planned act, buying the goods and services you need rather than spur-of-the-moment, impulsive spending.

To save money, pay with cash only

Retailers are well aware of statistics that prove you’ll spend at least 30% more if you’re in a store with a credit card, debit card or checkbook than with “cash”. A customer carrying cash is the last thing they want to see coming. Why? Because they know how cautious and not impulsive they are.

Keep a record of your expenses

Seeing where your money goes, you avoid unnecessary surprises. A spending log makes you really think about your spending habits. It will provide proof of your challenges and progress. Also, keeping a daily and weekly spending log is the first step in establishing a monthly budget.

First, keep a daily log for thirty days or a month. Writing down your expenses is the only way to find out where all your money is going. Every time you spend money, write a check, use your credit card, or use your debit card, write it down.

Accumulate seven days of spending records for one week. Accumulate four weeks of spending records for one month. You can then create your monthly budget based on what you spent last month.

Make a shopping list before going to the grocery store

A grocery shopping list is your call to action. The food industry spends billions of dollars a year to weaken its resistance to spending more money on fancy packaging and attractive displays. Create your list according to only the items you need.

Remember Step 1: Staying out of the store unless absolutely necessary will decrease your exposure time and your temptation.

Find a free bank account

Search as long as you need to until you find a bank or credit union that offers free accounts with a minimum balance. By custom some banks/digital startups do not charge for their services.

Pay your bills Online

Paying your bills online through your bank or an independent bill payment site will save you a lot of time and money. You won’t have to pay postage and you’ll have an electronic record of your banking activity.