How Do You Build Wealth: How to Save Money?
Saving money can be hard at times, especially if you’re not sure how to do so and what plan might be right for you. But we are here to tell you that if you do have a savings plan, it is a good start and you are on the right track! Anything is better than nothing, after all.
But you also may be wondering about other ways to save your money and build your wealth. Here we will go into some money-saving tips and the importance of saving money so you can build your personal wealth!
The 80/20 rule
With bills, groceries, and other things you pay for in life, there is a big rule of thumb that people go by the 80/20 rule.
For example, when looking at your expenses, you’ll find that 80% of your bill only comes from 20% of what you buy routinely. This means that you should be looking at ways to trim down on expenses to save money, so you can save it and use it for different things such as a savings account and investing.
Reviewing your budget can be very beneficial if you figure out how much you are spending and try to think of ways to trim down your expenses.
Think of the stuff you don’t need. For example, do you really need that subscription to that streaming service? Do you need that thing off of Amazon right now? Probably not, and if the answer is yes, then maybe look into cheaper alternatives.
Maybe with streaming services, you can share passwords. Maybe with something you want to buy off of Amazon comes cheaper somewhere else. The faster you save money and don’t spend on things you might not need, the better you can save for your future.
Get A Good Financial Plan
One of the biggest reasons people often struggle to save money is because they don’t really have a plan set in place for their finances, or they are not sure how to do that.
Without a financial plan, all of your budgeting can become a bit problematic. You might not know where your money is going, or maybe you don’t know how to cut down on a few costs.
The important thing to do here is to sit down and look at your budget. Try to think of ways where you could cut costs, and think of things that are important to your budget. It might sound hard to do, but setting aside a few hours every month can help you save thousands of dollars in the long run, so it is very much advised you do this.
Try to set aside things that are necessities and then things that are unnecessary.
Necessities could include rent (or mortgage), money for gas, healthcare, rent, phone bill, electricity, and things that are within those areas. Things outside of those areas you could consider cutting away and help you save money. Better yet: think of ways to reduce those necessary costs. Maybe you can get your cell phone bill cheaper somewhere else. Maybe you can save money on electricity by not using things that run on electricity.
Have Your Savings, Bills, and other Finances Automated
There is a reason why many of us struggle with saving money. This is because finances are boring to a regular human being.
Many of us don’t like doing it; therefore, we don’t, then we struggle with saving any type of money. The best way to counteract this is by having everything automated for you.
Nowadays, you can automate most of your bills to come directly out of your account when you go to do this. This can include things like electricity, healthcare, your phone bill, and more.
Going a step further, it is pretty easy to automate your savings, too, and you don’t have to necessarily put like 100 dollars in a month, either. You can start by having 10 dollars a week automated to your savings account. This way, you are not forced to do any of this yourself, and you don’t have to think about it as much. And these automated finances can be stopped anytime, too if need be.
Stop Eating Out
There is a reason why people tell you to “pack a lunch”. It’s because it’s true. Instead of eating out and spending more money doing so, you can pack a lunch before work and save money.
The better option would just be to not eat out at all, outside of lunch, but packing your lunch could be a good way to save money. This is because it costs more to eat out compared to making food at home. And the money you save off of eating out could go to better use, such as a savings account.
Buy Stuff in Bulk
There is a good reason as to why buying in bulk is considered a better option, and many people do this as well. Buying in bulk is guaranteed to save you money because buying in bulk is overall cheaper.
The cost goes down the more of an item you buy that is in bulk. This is very effective if you have items you use all the time. This could be stuff like shampoo, conditioner, laundry detergent, and even many food items as well! Think about items you use often and try to look around and see if that item can come in bulk.
Conclusion
We went over some of the best money-saving tips and the importance of saving money. These tips included buying stuff in bulk, stopping yourself from eating out and packing your own lunch, automating your finances, and we went over the 80/20 rule!
These are not that hard to do either, and anyone can apply these money-saving tips! We hope you learned something new with these tips, and we hope that you apply some of these money-saving tips to your own finances!
