A healthy financial education will teach you how to start saving money from the earliest stages of your life so you can easily deal with significant changes later on. Whether you want to buy a house, a new car or simply indulge in some luxury products, putting a little aside each month will help you reach your goal without credits, debts, and annual interest rates.
Here are the easiest and most creative ways to save money even when you have limited resources.
Start decluttering your house
Whether you’re a hoarder or not, cleaning out your closet and your entire house once in a while is a good exercise for both the body and the mind. Just look around at all the junk you have gathered in the past years – do you need all that? No matter if you have a passion for makeup, jewelry, shoes, clothes, or tech gizmos, it’s high time you started a yard sale.
Adopt a minimalist lifestyle
A minimalist lifestyle implies getting rid of all the unnecessary things in your house and keeping only the essentials. Building up a minimalist wardrobe will help you save both time and money by not thinking what to wear daily.
According to recent studies, many CEOs, important businesspeople or personalities such as Mark Zuckerberg, Mahatma Gandhi or Steve Jobs adopted this lifestyle where they enjoyed/still enjoy a frugal lifestyle based rather on experiences than possessions.
Buy in bulk
Another tip to help you save money in the long term is to buy in bulk the products you regularly use. This mainly applies to toiletries, some generic cosmetics, and food supplies that you are sure to consume such as deodorant, shampoo, toothpaste, rice or meat. However, stay away from products you only consume once in a while, even though they are on sale. Most of the times you will end up throwing them away and spending more money than intended.
You should also avoid buying perishables such as milk, yogurt, fruits, veggies or bread unless you are planning a party soon. Keep in mind that most of these foods won’t last more than a few days even when they are correctly stored in dry and cool places.
Stick to the 50-30-20 rule
The 50-30-20 rule implies diving your monthly incomes in three parts – 50% you use to pay taxes, rent, interests, and installments, 30% on food, supplies, clothes, monthly subscriptions hobbies, and shopping, and the rest of 20% you save. It’s always better to put some money aside in a trust fund or a second bank account that you can later use on what you desire the most.