Saving for a rainy day: Best practices for saving money

If you have second thoughts about getting that expensive mocha latte from that fancy cafe, then you probably shouldn't. It is wise to save money where you can, just in case you have to pass through the rainy days. Here are some tips that you can check out to minimise your daily spending. 

Set saving goals

One of the best ways to start saving money is to visualise what you will do with your savings. It can be for a specific goal or a backup for tough times. If you need motivation, set saving targets, and include a timeline to make it easier to save. You can start by identifying the sectors in which you must spend and the ones where you can save.

Set your goals towards minimising the extra spending every month and forward it to your savings account. Make a budget specific to every section according to your earnings and decide how your savings patterns should be.

Manage your spendings

If you are trying to save money through budgeting but still carry a massive debt burden, start by dealing with the debt first. Once you are free from your debts, you can put money into your savings. You can also automate savings from your checking account on each payday. Try not to miss out on this one. Identify habits that can add up to a massive annual savings sum, like the money you spend daily on your office vending machine, which can add up to a substantial amount of money.

Smart household

If you live with a family, then there are tons of options to save money smartly and minimise the cost of living by dividing the expenses. Initially, paying utility bills on time can save you from incurring late fees every month. Taking care of your electronics will lessen the maintenance cost. Reducing energy costs and cancelling automated subscriptions and memberships for unused services should be practised. 

In case of shopping for groceries, always make a list beforehand. This practice can be applied to other kinds of shopping as well. Try to prepare food at home, use all the fresh items at once and save them for later servings. Make sure to avoid wasting food. You can try growing your veggies and herbs as well.

Lifestyle changes

You might want to make a few changes to your lifestyle as well. Cut off on that trendy lavish style you chose to follow beforehand and set goals on how to adapt to the lifestyle you desire. Stop visiting restaurants often and eat at home. Prepare food at home and pack your lunch. Try to avoid eating at high-end restaurants regularly. And if you must, then include it in your budget!

You can also avoid buying expensive luxury clothes and adapt to more sustainable local brands. You can always use ride-sharing services in emergencies, but try not to make it a habit. Use public transport often to save up on your transportation costs. 

Cut back on unnecessary online shopping and track what amount you are allowed to use. One way to avoid overspending is to give yourself a cooling-off period between the time when an item catches your eye and when you make the purchase. Use Netflix, Amazon and Disney Star subscriptions as alternatives for your expensive cable connection.  

You can save money with more affordable gift ideas like books, plants, and herb gardens, or take the DIY route. Making cards, baking cookies, creating art or preparing someone's dinner can demonstrate that you care just as much as making an expensive purchase, and perhaps even more so.

Tips for students

If you are a student, your spending mostly depends on your study discipline. But there may be pressure to buy books and supplies for all the subjects. To minimise your expenses, you can try purchasing old books rather than new ones. You can also hit the library for an abundance of free books to read. You can also subscribe or register to e-book websites and avail books from the internet for free. Try to cut off unnecessary school supplies as well.

Many people think having fun means spending lots of money on movies, parties, clubs, theme parks or expensive restaurants. But there are many types of free entertainment available in any city – it just requires a little extra effort and dedication to finding the right places. Check out what on-campus activities your university offers like a gym membership, swimming pools, sports teams, drama club, reading circles, etc. 

Track expenses

Tracking your spending regularly can give you an accurate picture of what you are buying with your money and where you would like it to go instead. Evaluate which sectors to minimise or which ones need a little more tightening. Focus on the major expenses and plan out how to tackle them. Surprise spending can spring up anytime, like hospital fees or sudden changes in the overall economic state of your family, etc. But tracking your expenses can give you a heads up for what's ahead, and you will have a fair chance of surviving any rainy day that comes your way!