Everyone wants to save money when they can. It is widely known that saving money is the key to long-term, sustained financial stability. The catch is that saving money isn’t as easy as it seems. Today, I will be going into four money saving tips that you may not have thought of.
1 Understand Your Needs
In a subscription-based world, many products know that by offering a free version, many users will upgrade or spend money through in-app purchases. Think of Spotify, for example. Their basic free version, while still functional, is full of ads and inconveniences, enticing users to upgrade. The same applies to productivity and creativity apps. Despite perhaps having a goal of becoming an accomplished video editor or audio engineer, free applications like iMovie and GarageBand on iOS/Mac or their Windows counterparts will likely suffice for most people. Don’t let these companies fool you by convincing you that you need the premium softwares like Final Cut Pro or Logic Pro. Of course, if you’re in that line of work, by all means get the tools that you need. Just try to understand where you are in life and what your needs are. If you follow this, you will save some money.
2 Be Yourself, Not Your Friends
This is something that you hear a lot in a social context, but it also applies to finances. No matter where you are in life this needs to be understood, but especially for young adults. Those friends you have from high school or college may be the same people they were in your younger days, but that doesn’t mean that their financial status is. Be sure that you make it clear to your friends that your status might not work directly with theirs when you plan your Saturday night out. Trust me, they will understand and should be happy to work with you to find a cheaper bar or restaurant to visit.
3 Check Out Exclusively E-Commerce Services Companies
This is both a money saving tip and a money growing tip. In general, online-only companies will be able to provide services cheaper, such as cell service provider Mint Mobile. These companies do not have nearly the amount of overhead costs (physical stores, employees, etc.) and are able to pass a lot of those savings on to customers. This applies to banks, as well. Online banks generally offer higher interest rates on savings accounts and certificate of deposit (CD) accounts for the same reason. Banks like Vio Bank offer up to 2.52% on savings accounts, which is actually phenomenal compared to a lot of standard banks in the 1% range.
4 Create and Manage Your Own Weekly Allowance
You know when you were younger and your parents maybe gave you $20 a week or so in order to go see that movie with your friends or whatever? For many people, this is actually the first introduction to personal finance. You can spend that $20 every week and wait until the next week, or you can pocket that money and next thing you know, you’re buying an Xbox or something. The same principles, as simple as they are, are super useful for adults living on lower budgets. Best way to do this? Create a separate checking account and use it only for “fun money” or anything you want to monitor weekly. This creates an environment in your financial life where you have one account dedicated to bills and another dedicated to flex spending. It is highly effective and works wonders when trying to live low budget.
