Many people want to save more. It’s not easy to put money aside when you are already careful and/or have a very tight budget. Café de la Bourse presents you with some simple ways to save money to see your savings grow.
First, we’ll see that to spend less without cutting back on your fun expenses, all you have to do is cut back on the things you have to spend money on. Then, don’t neglect common sense and negotiation. Finally, rationalizing your finances is an ingenious way to make real savings.
Here Are 15 Simple Ways to Save Money
Rent instead of buy
You may be excited about doing some work around the house, but don’t let your common sense go to waste. Instead of running to the Home Depot to buy that great jackhammer, rent one.
Think before you spend your money on expensive items that you’ll only use once a month or once a year. A lot of equipment lending sites have sprung up in the last few years. Use them! You can save a lot of money.
Buy instead of rent
Don’t spend a lot of money on rentals for products you use regularly and will keep for a long time.
In short: if it’s expensive and one-time, rent. If you regularly use a product that has a long life, buy it.
Eat your groceries
Save your precious money by eating everything you buy.
If the idea of cooking for yourself seems insurmountable, at least opt for the take-out option instead of dining in. You’ll save on tips, wine, and dessert. But you can also turn this chore into fun. Organize cooking contests with your spouse and/or children, and challenge yourself to cook leftovers. Use your good conscience: less waste and more home-cooked meals are better for the planet and your health.
When you rent books from the library, for example, or videos, mark them carefully on a calendar and save on late fees.
The same goes for clothing box subscriptions. It would be a shame to have to pay for all of the items you were sent, even if some of them don’t fit or you don’t like them, because you missed the deadline to send them back. Many stores, eshops, and libraries offer to send email alerts to help you out, so sign up right away.
Lose your bad habits
Smoking, eating too much, drinking too much. These are bad habits that cost money. As a lazy person, this is probably a big item in your budget.
It will be painful, but very effective. Especially since the price of a pack of cigarettes is constantly increasing (+68% over 10 years). Alcohol, which is very heavily taxed, can also be an important part of your budget. Reducing your consumption is good for your health and your wallet.
Dare to negotiate
Because it is easier and more pleasant to make savings on constraints than on pleasure expenses, go through all your electricity, telephone, internet, insurance, bank fees, loans, etc. contracts, and negotiate! Numerous online comparators allow you to compare prices between competitors in many sectors.
Dare to negotiate. You have nothing to lose, so why not ask your bank or online bank if they can lower the interest rate on your home loan? Rather than switching providers, don’t hesitate to ask for a discount on services like a cell phone or internet access.
And, of course, don’t be afraid to ask for discounts on large purchases like a car or home furnishings.
In tough times, the seller is more than ever willing to lower his price rather than lose a valuable buyer. In the end, both parties will win.
Know how to say “no
For example, say no to that extended warranty contract, or to those optional alloy wheels on your car. Look at how much it would cost to repair or replace it if you really want to repair or replace the item in question.
Set up automatic payments
At the very least, arrange to have your monthly bills paid by direct debit, so you don’t forget to pay and then have to pay late fees or interest.
Set up an automatic payment through your bank’s online service, or arrange directly with the company or service provider.
Consolidate your providers
There’s no point in paying multiple providers for similar services.
Call your provider to see if you can get discounts if you change your internet, phone, or other services, such as TV or cable. Also, be careful not to sign up for too many similar offers. Will you really have time to watch Canal +, Amazon Prime Video, Netflix, Disney +, and OCS? Nothing is less certain!
Pay off your consumer loans
Pay off your consumer loans if you have any. This is the best way to save money by saving on interest. If you don’t have any, don’t take out any! It is always more interesting financially to put money aside for several months to buy the object of your desire than to take out a consumer loan to do so. You can still buy it right away if you can afford it or if you can pay in several installments without any fees.
Pay your taxes on time
Yes, paying your taxes is a pain. And no one likes to file their taxes! But if you do it on time, you’ll avoid unpleasant reminders from the IRS. More importantly, you’ll avoid paying fines, penalties, and interest. No one escapes the IRS. Not even Chuck Norris, so if you have to pay them, pay them on time!
Do your homework
This may take time, but it’s something you should do. It will prevent you from being overdrawn and having to pay exorbitant fees. It’s also the surest way to make sure you’re sticking to your budget.
Set specific goals
Set specific goals. If you are too vague about “saving more”, you won’t reach your goal. Set a (realistic!) number and stick to it! As a rule of thumb, 10% of your income can be saved, but for higher incomes, it can be much more. Have you amassed a record amount of money with forced savings due to confinements? That’s great! But don’t try to maintain comparable savings levels. You won’t last. Don’t cut back on leisure and entertainment expenses. If you try to cut back too much, you’ll end up breaking all the rules and jeopardizing your finances.
Choose the right investments
Reducing your expenses is necessary to save effectively, but not sufficient! Savings management is the second aspect to take into account. If the French prefer non-risky products, in the current context it may be necessary to take a little risk on part of your savings to improve the return by looking at life insurance for example. You can also invest in the stock market via a PEA or a securities account, on your own if you feel comfortable enough, or within the framework of a managed investment scheme through which your assets are managed by experts who make their decisions taking into account the market situation, your risk profile and your investment horizon.
Talking about money
Talking about money with your usual advisor at your bank or with a wealth management advisor will also allow you to better manage your money because you will see your finances more clearly, define objectives, one or more investment horizons, a risk profile, etc. All these elements will help you save more and better.
Some questions on how to save?
How can I save on a small salary?
It doesn’t matter how much you earn! What is important is not to put aside a fixed amount each month that would be the same for everyone, but to put aside a percentage of your income, whatever it may be: about 15% of what you earn. If you have a large income, your savings will be larger than if you have a small salary. It’s up to you to determine the exact percentage by making a monthly budget.
Should I save it at the end or at the beginning of the month?
It is essential to put aside the amount you plan to save each month as soon as you are paid. Don’t wait until the end of the month to see how much you can save. The result may not be what you expected. It may be a good idea to set up an automatic transfer to a savings account the day after you get paid.
What are the best ways to save?
To set aside savings, choose your medium according to your investment horizon. Therefore, choose bank passbooks for the short term and the euro fund of life insurance for the medium term. These investments with guaranteed capital will allow you to find your savings intact at any time. To invest your savings in the long term, you can turn to the stock market and the real estate market.