Compounding is key, same small amounts from multiple channels and the collective savings will be much higher than you think.
Do not save what is left after spending, but spend what is left after saving. – Warren Buffett
1. Cut Coffee and Eat-out Budget
Cut the coffee shop visits and brew your own coffee. Similarly, cut eating out and consider cooking your own meals – that will not only help save a lot but also lead to a healthy life, saving money in the long run on your health bills. Plan your meals and you will save a lot.
2. Review all Your Bills and Statements
We take things for granted more often than not on the bills and statements. See if you can cut things around your bills.
An example is your mobile and data bills. Are all these volumes of data required? Is your package economical? Are you using all value-added services? You can save more than you think on your monthly bill by cutting down the value-added services and data/voice volumes that you do not use.
Review your credit card statements. Do you really need all those subscriptions that you auto pay out of your card? If not, you should consider cancelling those.
Never spend your money before you have it. – Thomas Jefferson
3. Improve Energy Efficiency
For example, on electricity, how about saving by switching off lights, equipment and screens. Maybe you are browsing your social media while the TV is on, switch one of them off often than not.
Lower your heating and cooling needs. Buy energy efficient equipment.
4. Watch Interest You Pay
For loans as well as for late payments of bills, there is an associated interest fee. Are they reasonable or too high? Make sure the excess money you pay as interest on your loan, lease, finance and late payments are reasonable. If they are not, then you need to seek means to lower them down.
5. Maintenance and Repair Saves Money
Rather than purchasing new, do your maintenance on time and prevent equipment breakdown. For example, oil change of your vehicle on time is key to ensure prolonged trouble-free use. In case some equipment is broken, you may want to consider repair as opposed to buying new. When you do this, consider the cost of repair and possible length of lifetime after repair compared to cost of baying new and new equipment lifetime.
If you have to replace existing, consider the benefits of buying used vs buying new. In some cases, buying used saves considerable amount of money for the same experience and same lifetime of the device.
6. Watch Your Expenses
Understand where your money is going. Start a simple noting down exercise for all your expenses. Review them all once a week and once a month. Identify expenses that you can cut down or completely eliminate. There are simple models to help keep track of your expenses and save more. For example, the Kakeibo Method, the Japanese budgeting model that help save money provide you great insights into your expenses and how to save money.
He who buys what he does not need, steals from himself. – Swedish Proverb
To save substantial amounts of money you need to have a simple plan that you can execute on a daily basis. Keep focus on few simple hacks and keep practicing them regularly. Watch the amounts you save and evaluate savings on your effort investment.