It’s only the middle of the month and your wallet is empty.
If this is you, then read ahead.
As a financial advisor in Dubai, I often hear these stories from people struggling to save some money despite having a decent income stream. And in most cases, it is simply a case of indiscipline or ignorance. Although long term portfolio planning & financial goals require a more in depth strategy which you can discuss with a financial advisor, there are a few easy hacks which can definitely save you some extra money each month.
Let’s look at them here:-
1. Be aware
Start by tracking your daily expenses. Then categorize these as per the priorities such as essentials and negotiables. Essentials here would be your rent, food expenses, car, electricals, etc. Basically what constitutes your fixed expenses. The negotiables are anything you are spending on over and above such as parties, eating out, shopping, etc. After making this list, you automatically become aware of the places you can cut down. For example, instead of eating out every other night, you can cook for yourself. Or you can check if the last few items you shopped for yourself were actually needed or not. It’s basically important to keep yourself in check about your money habits.
2. Downsizing your home
Now this may not be applicable to everyone but most of us tend to overlook this fact. If you are a family of two and are living in a 3 bedroom apartment, you can easily consider downsizing as that would help you spend less on power, maintenance, utilities and more.
3. Pay off old debt & avoid new ones
With all the quick easy buying schemes and offers, it can get tempting to shop more than you may need. But never forget the amount of interest you are taking on for the things you probably don’t need. And it may be a disaster if you are already under some debt. So make a plan with your financial advisor to firstly clear off your old debt so you can start working towards financial freedom.
4. Save any raise or bonuses you receive
It can be tempting to utilize a raise, incentive, or bonus to treat yourself whenever you receive one. Isn’t it? But, it’s good to remind yourself that you can earn more but still spend less! All you have to do is be more mindful about your finances.
5. Avoid late fees
Have you ever paid a bill after the due date because it ended up in the wrong place? Or are you too busy to keep a track? Getting organized can help you avoid late payments and the surcharge, thereby resulting in savings. It may seem negligible but over time, the amounts do pile up!
6. Automate your savings
Sign up for a monthly savings plans or funds as suggested by your financial advisor. Doing this will ensure a fixed amount of savings on a regular basis and set you up for cumulative gains in the long run.
7. Get rid of any unused subscriptions
Subscriptions are a common source of revenue for many companies. Why? Because the idea of canceling them after signing up for them seems too difficult. In truth, canceling an inactive membership or relying on a cheaper option is often easy and may help you save money.
8. Bulk purchases
Order your groceries in bulk or team up with neighbours and friends to order together and save up with discounts. Larger amounts result in cost savings and reduce the number of shop trips. So you also end up saving time and effort.
9. Minimize your electricity bills
There are several ways you can slash your electricity bill. Unplugging appliances can stop phantom electricity, which is where electricity is still being used even when turned off. Of course, turning off lights and appliances when you’re not using them is a huge saver too.
Another way to save even more is switching to fans instead of using air conditioning when possible. These are simple adjustments to make that can help save money.
10. Make a budget plan and stick to it
Have you ever wondered what happened to all of your hard-earned money? If yes, I suggest that you plan your expenses in advance and stick to it. Remember, budgeting can go a long way in helping you avoid impulsive buys and also get into discipline.
It’s always better to control your money rather than be controlled by it. Educate yourself, set out your financial goals and work towards achieving them.