If the question of how to save more never crossed your mind ever, this article is not for you.
Imagine yourself at the kitchen looking troubled and sad. Next to you are stacks of bills, a pen, a calculator, and a piece of paper with all your payables. You’re attempting to make the most out of the family’s income this month. And much to your dismay, after allocating budget for everything you have to pay, you found out that you don’t have even a dime left.
This is not something that you can just shrug off and pray to get better. You have to do something about this and that means you need to learn and master the art of saving money. And not only save money per se, you have to save enough to make an impact to your savings account.
A very good place to start would be pulling out your expenses spreadsheet to see and check where we can cut down cost and where we can strategically look for ways to save enough money from your monthly budget.
Here are three simple steps you can try to start saving money now.
Learn, master, and apply the 80-20 Principle
The 80/20 rule is popularly known as the Pareto Principle. This rule simply states that 80 percent of the results you show are from 20% of all your combined efforts.
Look at where you spend 20% of your income. Do you use this to buy lattes and slushes?
However, the important thing in saving is to shift your focus on the 80%. The key to saving big is to look at the bigger bulk of the percentage.
What’s taking up 80% of your monthly budget? What are these expenses that you pay for over and over again? Can you reduce these for each month? Why do you spend for them again and again?
Take advantage of technology and automate your finances, savings, and bills
One of the biggest reasons why we’re not taking saving seriously is that more often than not, we don’t know how much we ought to save each month.
We are mentally wired to think that learning about finances is boring, that you need to have more income before you can save, and that we have more money that what we actually have.
Automating your bills, savings, and other financial expenses can help you become more mindful of your money and you can also avoid getting tempted of buying things you don’t actually need 5 days after you bought it.
If you can negotiate to lower down your bills, the better
The power and the ability to negotiate is a skill that you need to master if you want to do better in life.
Immediately dial and call your billers and other service providers and negotiate for a better deal. Don’t be afraid to haggle. It doesn’t matter if it’s for your car insurance or for your cellphone, the thing that matters is for you to be able to talk to them for better terms and coverage.
A short conversation might just be all you have to initiate to be able to save more money and work your way to a reduction of 80% of your expenses on a monthly basis.
Saving and taking your finances seriously doesn’t always mean boring mathematical stuff. Most of the time it’s creativity and communication that get things done.