Must-Try Saving Tips For Your Short And Long Term Financial Goals

• Author: Jenny Wolff
• Posted: 2024-05-11

Contrary to popular belief saving is not only possible with a huge income. It also does not mean cutting back on all good and enjoyable things or saving vast amounts of money at once. Saving is possible regardless of income, provided you are disciplined, consistent, and patient.

This is where smart spending comes in, and the following tips will enable you to achieve your goals.
 

Indicate Your Goals

Like everything else, listing your short and long-term saving goals gives you something to work towards and helps you track how close you are to your goals. You can note your goals in your journal or have a spreadsheet.

Ensure that your goals are easily achievable because very high goals could be hard to achieve, reducing your motivation to keep saving.
You can list them in order of importance or from the one with the lowest target. You should also indicate when you will be saving in each category and when you will be saving. To ensure you never miss a day, have a separate savings account, link it with your primary bank account, then automate the saving process.
 

Track Your Expenses

Many people have no idea where their money goes by the end of the month, making it easy to lose money in small recurring purchases. Note every transaction and identify how much money comes from your account.

Instead of collecting your receipts and spending notifications, you can use a money-tracking app to automate your expense tracking. That helps you identify your patterns, see the unnecessary expenses you should cut back, and spot unused subscriptions.
 

Budget

Budgeting helps you reduce overspending and cultivate financial discipline. There are different budgeting methods depending on your goals and preferences.

50-30-20- This requires you to spend 50% of your net income on basic expenses, 30% on secondary needs, and 20% on savings and debt repayment.

Zero-based budget- This is where you allocate every dollar to an expense, leaving you with a zero balance.

Envelope budgeting- This is the same as zero-based budgeting, only that you must have an envelope for every expense and allocate a specific amount until your next payday.

Pay yourself first- This requires you to pay yourself by saving first, then using the rest of your money on other expenses.
 

Pay Off Your Debts

Debts can help you get out of emergencies but can cost you a lot in the long run in terms of interest. Therefore, you can use the following debt repayment methods depending on your priorities and goals.

Debt snowball- This is the most common and effective in building momentum to pay all your debts. It requires that you focus on settling the debts with the lowest balances first.

Debt avalanche- This is the opposite of debt snowball, requiring you to focus on paying off debts with high-interest rates first after paying the monthly minimums of your other loans.

Debt consolidation- This is combining all your debts into one with a lower interest by using personal loans or credit card balance transfers.
 

Ditch Your Credit Card

Like debts, your credit card can cost you a lot in terms of interest rates. Therefore, instead of building up your credit card debt and spending extra on interest, ditch it and use cash or bank transfer. You can also have a prepaid credit card, which requires you only to spend the money you load on it.
 

Cut Back Your Grocery Shopping

Your groceries account for a considerable percentage of your monthly expenditure, and below are some ways you can cut back on that.

• Have a garden


• Meal prep or order meal kits


• Buy in-season ingredients, fruits, and vegetables


• Ditch bottled water and purify your own


• Pack your lunch

 

Reduce Your Utility Bills

Utility bills are another recurring monthly expense, and since you can't live without your utilities, below are some ways to lower the bills.

• Use energy-efficient bulbs


• Take shorter showers


• Turn off the lights when not in use


• Unplug appliances when not using them


• Wash your clothes using cold water and air dry them


• Upgrade your appliances


• Get low-flow fixtures

 

Avoid Impulse Buying

You might not realize it, but much of your money goes toward unnecessary items. To avoid impulse buying, always use a shopping list and avoid window shopping online or in-store if you do not have a particular item you are looking for.
 

Buy in Bulk

Instead of buying things per unit, start looking for wholesale purchases. This is good for things like detergents, groceries, and school or office supplies.
 

Look for Deals

Look for coupons, sales, discounts, or loyalty programs from brands, especially the ones on the pricier side. There are online extensions you can use when shopping in different stores that can scan the web for the best deals and apply them to your purchases.
 

Thrift

Thrift shopping is an excellent way to find good quality items, some of which are vintage, brand new, or from reputable brands, at a fraction of the price.
 

Conclusion

Saving is essential to help you achieve your financial goals. You can accomplish any savings target with discipline, consistency, and patience, regardless of income or age.