Ever find yourself out of funds? Wanted to save some cash for a rainy day but keep finding yourself spending it all? This type of behavior is very common, specially with millennials. With all the things that we need to go about our daily lives like a phone, load for your phone, data for your phone, internet, food, water, commute fare, friends, and all that stuff. The temptation is hard to ignore. Here are some tips to help you keep some of your cash.
Save before spending
According to Warren Buffett, CEO of Berkshire Hathaway and one of the richest men in the world, for you to save some money, you first need to set aside how much you want to save up, then spend the rest. For most people, it’s the other way around. They spend first, then save whatever is left. We suggest that you set aside at least 20% of your monthly income. You can then have some peace of mind spending the rest of your hard earned cash knowing that you’ve saved up some of it.
Stay in-doors
For some people, this is hard to do, especially for extroverts. But know that if you keep yourself from going out, you’re less likely to spend money. You won’t have to pay for fare or gas, and you won’t see anything that’s going to tempt you to spend some money. We do however recommend that you at least buy something that’ll keep you in doors. Like a gaming console, a laptop/PC, a good book. Basically anything that can keep you occupied and take your mind off going out for months. Think of it as an investment. As you spend your time in-doors, you learn or have fun doing it and at the same time, saved up some cash.
Buy what you need. The essentials!
Your friends just got the new iPhone and you’re still stuck with an iPhone 5. Ask yourself, what does the new iPhone have that your current iPhone can’t do? Can your phone send texts? Can it call someone or can someone still call you on it? Is the hardware still OK? If so, why give in to peer pressure and replace your perfectly good phone? Don’t buy things just because they’re “in”, buy things because you need them. I know someone, who 2 years ago spent her money on a new phone. The result? Her kid ended up eating cheap food for breakfast, lunch, and dinner for weeks.
Sales are an illusion
It’s OK to buy things you need from sales. But some people buy things because they’re on sale regardless if they need them or not. People argue, “Well, this was originally $50 and I bought them on sale for $35. I saved up $15!”. No you didn’t! You spent $35. If that item was for sale for $35 and it didn’t have an “On Sale” tag on it, would you still buy it?
Bargain
Obviously you can’t bargain in malls and department stores, but you can do that in other shops downtown. Always ask for a lower price to save up. Most often, shops have a little wiggle room and will give you a discount. But don’t expect a huge discount like 50% off. Shop owners still need to earn some cash. Be content with the lowest they can go.
By early in the day, or by late
Not a lot of people know this but we have what we call “Buena mano” and “Sera mano”. In the Philippines, buena mano is often referred to as the first sale of the day while sera mano is the last sale of the day. What’s good about this is that you can actually get a much lower bargain if you’re the first or last customer of the day. This is because the shop keeps are still in a good mood early in the day, and is in a hurry to go home when they’re closing up. So they tend to give a much lower discount if you ask for it during these times.
Accept your salary via bank deposit rather than cash on hand
The view of money changes once you actually have it in the palm of your hand. Regardless of how huge your bank account becomes, you’re less likely to spend the money if all you’re seeing are numbers on a screen rather than the actual thing on your hand.
Use cash when shopping
You’re more likely to loose track of your funds when you use your debit card. And you’re more likely to spend more if you keep using a credit card. With our first tip, set aside how much you want to save, then withdraw the rest if you’re feeling the urge to spend. Don’t use your cards.