The family is the basic unit of society, but to run effectively every family has to learn ways to save money to meet its needs.
These needs which are most times too numerous to mention could arise unexpectedly hence, as a family you need to have a savings account, know how to invest your money, learn how to save from your salary so you can stay out of debt, and even if your job is not a high paying job, you can learn how to save money fast on a low income.
You should learn at least one money savings tip, so you can save money to meet your present and future needs.
All the aforementioned ideas on how to save money will now be explained in detail.
1. Stay On The Budget
At all times, learn how to allocate money to a particular purpose and stick to it. This is the first and most used disciplinary method known to man to save money.
When you make a total summary of your expenditures along with a proposal on how to meet them, plan your budget to enable you to scale through the expenditures.
2. Shop With A List
This will help you to know what you need and what you don’t need and it will guide you against buying things you never planned to get.
3. Avoid Impulse Buying
Unplanned decision to buy products or services made before purchase is dangerous and should be stopped. To help you with this, learn how to delay purchases for days or months.
Don’t buy for the wrong reasons whether on discount or seasonal sales. Just ask yourself do I need it?
4. Track Your Expenses
The main reason you should track your expenses is to identify and eliminate wasteful spending. Consistently tracking your expenses will help you maintain control of your finances and improve your savings and investment culture.
You can write out each purchase you make on a sheet of paper and hang it in a central place where you can see it all the time, doing this will help you figure out where you stand financially.
5. Master the 30 Day Rule
This rule tells you to invest the money you were supposed to spend on a product or service you didn’t plan for in a savings account for 30 days and after this time, if you still feel the need to get the product or service go ahead but if you feel otherwise do not invest in such a product or service.
6. Use Cash To Pay Your Bills
When you pay with cash you have budgeted for purchase, it makes it easier for you to track exactly how your money is spent; how much is coming, and how much is going out daily, weekly and monthly.
This can also help you to avoid the accrued interest which is added on credit cards and keeps your debt in check.
7. Separate Need from Wants
Itemizing the important goods or services you have in mind to purchase is very important because it helps you have a very clear picture of what is needed.
As a couple in a family, you should separate your needs from your wants to help you get things that are needed first before looking at what you want.
If you have children in school or your grocery is depleted and yet you want pieces of jewelry, what do you do? First, you take out exactly what is important which are school fees or groceries then if you still have extra cash to spare, you can consider getting your pieces of jewelry.
8. Create A Savings Plan
Create a savings plan that works for you which could either entail your saving a particular sum of your salary, setting up an automatic money transfer from your checking account to a savings account monthly, creating an emergency fund, saving for different goals such as retirement, children’s college, vacation, shopping, things you want or creating two or more of the aforementioned saving plans.
How To Invest Money
Laying out money or capital in an enterprise with the intent or an expectation of profit is truly a rewarding project. This method is one of the best ways of saving.
Investment may sound futuristic, yes, that is the more reason why you work or do business to have enough for tomorrow. So to be sure of tomorrow, you have to save.
Let’s look at ways you can invest as a family and make returns on your investment.
1. Try The Piggy Or Cookie Jar Approach
Before making any investment, you have to save. You have to save enough money to march the investment you want. One of the fastest and easiest ways to do this is the cookie jar approach or piggy bank approach. This approach entails your putting away the money you want to save in a piggy or cookie jar.
2. Investing In Stock Market
You can start investing in the stock market with little money. It takes money to get money in this kind of investment. The internet has made it easy for customers to get started with very little upfront money.
You can initiate it and get yourself a starting platform for investing before making a bigger investment. In this business, modesty is the way to start learning about investing, putting very little money at risk. Check out with the investment experts or stockbrokers to get started.
3. Real Estate
This is one sure place your money can be safe with maximum returns. When you invest in real estate, you could achieve a million-dollar net worth simply because the properties you own or manage have gone up in value over the years.
4. Low Initial Investment Mutual Funds
Mutual funds are financial security that allows you to invest in a portfolio of stocks and bonds with a single transaction making them perfect and friendly for new investors.
You can prepare for this for some time by maybe using the cookie jar approach or any other money-saving methods that suit you because a minimal investment is required and it will not cause you any troubles.
How To Save From Salary
The following are some ways couples can save money from their salary.
1. Have A Budget
Every system functions on budget whether it is daily, weekly, monthly, or yearly. Having no plan for your money means it will be mismanaged. The reason for budgeting is that it helps you to plan, organize and postulate goals with your finances.
2. Cut Your Food Budget
One of the effective ways to save money is to minimize the amount you spend on food each month. Eating out is one of the very big ways families and individuals spend each month. An average American family will spend up to 900$ a month on food but you can spend less if you cut eating out. This will help you save the money that you would have spent on eating out plus you get to spot great deals when you shop for food with a list also, it allows you to ignore unnecessary wants.
3. Have Clear Goals
Draw out a clear goal of what you must achieve and also write when it must be achieved. Having done this, make sure there is a calculated effort to see it through. This will motivate you to achieve it especially when your goals are defined alongside important values. For more information on how to set goals read my blog post titled: How To Set Goals And Achieve Them.
4. Embrace Delayed Gratification
This is simply delaying your immediate little reward for a larger and better reward. So whenever you feel the prompting to spend on things that are not important, choose to look at the bigger picture and invest wisely.
5. Clear Your Debt
Debt can hold you back from achieving your financial goals. It will cause constant depletion of your budget. So clear the airways of debt for a better financial life.
6. Automate Your Savings
This is the automatic transfer of money each month from your checking account to your savings account. It will help you save and to make real progress as a family.
7. Do Cash Purchase
When you use cash then it becomes easier to use your budget to keep track of your spending. The use of cash helps you realize how much you are spending.
8. Engage In Self-Care
Save money and enjoy a high-quality life as a family by doing the following:
- Eat right
- Stay away from hazardous activities like smoking, excess alcohol, and extreme sport
- Sleep enough
- Feed your mind with the right thoughts
- Always take advantage of health care insurance offers.
Learning to save as a family is very vital because it determines the financial position of the family. Every family should learn how to manage their resources and also make investments for the future.