Saving money isn't always easy! Let's face it, gents – you've got a family to support and a life to lead. Putting away money in the bank every month isn't always an option.
However, without a safety net, many guys find themselves in deep water. Should the worst happen and you lose your job, how would you support yourself and make sure your family stays afloat?
Don't worry, as ever I've got you covered. In today's article, we're breaking out my top tips on how to save money this year.
#1 How To Avoid Over-Spending
Saving money is important, but let's be honest – it's not always the most fun thing to do.
It can be easy to overspend, especially when there are so many tempting things to buy. However, there are ways to save money responsibly without being too frugal and sacrificing enjoyment.
For example, one simple way to save money is to set aside 10% of your monthly wage for a rainy day. This way, you'll have a cushion of cash to fall back on if you ever need it.
Another tip is to avoid impulse purchases. If you see something you want, wait 24 hours before buying it. This will give you time to think about whether you really need it or not.
Finally, don't be afraid to shop around for deals. Chances are, if you like the look of something, it'll be on sale at some point in the future. Have some patience and wait it out – who knows how much you could save if you just wait a month or two!
Today’s article is sponsored by Aura – providers of A1 identity theft protection, fraud monitoring, a VPN, password management, and antivirus software all within one easy-to-use app.
They're doing great work and helping people stay safe online.
When it comes to fraud, every second matters. With Aura, you can safely connect your credit and bank accounts and get notified of any changes up to 4 times faster than Aura's competitors.
What's more, their antivirus software will block malware and viruses before they infect your devices! Guys, it's a no-brainer – click here to start your free trial today.
#2 How To Invest In Your Future
Saving money is important, but it's not the only way to grow your wealth. Investing is another powerful tool that can help you reach your financial goals. However, before you start investing, it's important to understand how to do it as safely as possible.
There are many different ways to invest money, but some of the most popular options include stocks, bonds, and real estate. Each option has its own risks and rewards, so it's important to choose an investment that aligns with your financial goals and risk tolerance.
- Investing in stocks is when you buy shares of a company: This can be a great way to grow your wealth, but it's important to remember that stocks can also go down in value, so you could lose money if you're not careful.
- Bonds are essentially loans that you make to a company or government: In return for lending your money, the organization agrees to pay you interest payments over time. This is generally considered a safe investment, but it can also be less profitable than other options.
- Real estate is when you invest in property: You're essentially buying a building and hoping that it will increase in value over time. This can be a great way to grow your wealth, but it's important to remember that real estate is a long-term investment and it can take years for your property to appreciate in value.
One of the biggest advantages of investing is that it gives you the potential to earn a higher return than you would if you simply store your money in a savings account. However, it's important to remember that there is also a higher risk of loss when you invest.
As such, it's important to only invest money that you can afford to lose.
#3 What Are The Different Types Of Savings Account?
When it comes to saving money in a dedicated savings account, there are many different options available.
For short-term savings, a regular savings account or a money market account may be the best option. These accounts typically offer low interest rates, but they also have relatively low fees and allow customers to access their money fairly easily.
For long-term savings, however, an account with a higher interest rate may be more beneficial. Certificates of deposit and certain types of investment accounts can offer higher returns on investment, but they may also have more restrictions on how the money can be accessed.
Regardless of the type of account chosen, it is important to shop around and compare interest rates before making a decision. By carefully choosing the right savings account for your needs, you can make the most of your hard-earned money in the long run.
Of course, you should always be mindful of your 401k. Saving for retirement is essential for every man, regardless of age or profession.
#4 How Can Minimizing Your Outgoings Save You Money?
We all know that one of the simplest ways to save money is to cut back on unnecessary expenses. But what exactly qualifies as an unnecessary expense?
Of course, this will vary from person to person, but there are definitely some common offenders that we can all live without.
For example, do you really need that gym membership? Could you get just as much exercise by going for a run outside or working out at home? For some guys, that's not an option! I get it, you feel like you need the gym so keep the membership and consider other aspects of your finances that you could cut back on.
It's easy to let subscriptions pile up – before you know it you've subscribed to 3 different TV streaming services and 2 different music services. Do you really need all that media in your life? You could save yourself a lot of cash by only paying for what you actually use!
If you're honest with yourself, the answer is probably ‘no.' So why not cancel most of them and save yourself some money?
Minimizing your outgoing bills is a great way to free up some extra cash that you can then use to save for your future. You just need to be careful, don't cancel something you actually need! This could end up costing you more in the long run if you end up exceeding a price cap or usage limit on a service you use regularly.
#5 How To Create An Effective Savings Budget
Many people find the task of creating a budget to be daunting. However, it's worth learning how to do, as it can help you ensure that your finances are well-organized and that you are making the most of your income.
By following a few simple steps, it is possible to develop a budget that will help you save money and pay the bills without too much hassle.
The first step in creating a budget is to track your income and expenses for a month. This will give you a good idea of where your money is going. Simply list out your different incomes on one side of a table and then your outgoings on the other side – do the simple maths and you'll be able to work out what you've got left after paying all your bills.
Once you have this information, you can begin to allocate your remaining funds into different categories, such as:
- Dining Out
You can also use this information to set spending limits for each category. Remember, these categories are all luxuries – if you find you're spending too much money, you can always cut back on them.
The trick is to start small and work your way up. For the first month, budget very frugally and only allow yourself the basics! That way, you'll see what your ‘worst case scenario' looks like, which will help you stick to a more relaxed budget in the coming months.
Want to learn more about finances? I've got you covered – check out my guide to money hacks you can use when shopping online.
Click here to watch the video: ‘Why I Have 35 Savings Account (And You Should Too)'