There is no doubt that with crippling credit card bills and student loans, saving is not an option for most people, especially young professionals. Despite this, you should try to save money (while you can). Here are five tips to help you save money.
Save Money First
The first thing you do when you receive your pay is to save money. Make a goal regarding the amount of money you would like to save every month. Then, stick to it. Also, consider the monthly bills and other payments that you need to pay. It will help you in making a realistic goal regarding your savings. That way, you will avoid spending money on unnecessary items.
Take Personal Loans with the Lowest Interest Rates
Whether you are planning to start a business or are planning to pursue higher education, you may have to seek personal loans. Most banks offer high-interest rates. However, you can find various outlets that have lower interest rates. Hence, do your research before you choose a bank for a loan.
In addition to this, virtual credit cards, such as Money Me, offer interest-free terms on credit card bill payments. You can make use of such deals to lower the interest you pay to the credit card company. So you end up saving money.
Avoid Dining Out
Millennials tend to dine out more than any other age category. It may help explain why we are so bad at savings. You can save money by cooking at home instead of dining out. However, it is understandable that cooking every day of the week is difficult for working professionals. Hence, you should be realistic and cook while you can. If you cannot eliminate dining out, at least try to go out less often.
In addition to this, do not waste food in the kitchen. Only buy foodstuff that will last you a week. Try to avoid filling your fridge, only to throw expired food out later.
Use Local Transportation Instead of Your Car
Taking the local transport saves you the money you would otherwise spend on gas and car maintenance. You may not notice it, but you spend a large chunk of your money on the care and maintenance of your car. Moreover, if you lease a car, you may be paying monthly payments to the leasing company. Instead, you can save money by not leasing a car in the first place. If you live in the city, local transportation is a better alternative, because of limited parking space.
Save On Utilities
There are several ways that you can save on utilities. Installing instant and electric water heaters is efficient and saves you money. Also, by lowering the thermostat by a few degrees, you can save up to 5% of the total energy cost.
Try to practice some discipline when it comes to saving money. For instance, if your love of shopping is why you cannot save money, you need to face reality and stop spending so much on clothes. Also, you should choose alternatives. You can buy discounted items or go to a thrift store as an alternative.