Today I am sharing my theory on how to save small for something BIG.
This topic might be tricky in personal finance discussions, because each and every family has it’s own budgeting rules and “traditions”. And it’s totally fine that what I will never sacrifice in my expense list someone else will easily remove. With this in mind I will go over general stuff that point by point presents how you can save small money for a big stuff.
But before I start, I would like to highlight one important thing: don’t become greedy to yourself and to your family members. Money love to be spent. Just spend them with purpose, don’t misuse them. Save small on less important stuff and become able to purchase something big and more valuable.
Straightaway, here is a “save small for BIG” plan:
Do not buy too much of everything:
Do the list. Avoid impulsive shopping when you are hungry or just received your salary.
Do not waist the food. Buy as much as you need.
Do not overload your freezer already not knowing what is there in the bottom of it. Food is considered a main money “black hole” in our days.
Try to avoid those “sale” items if you really do not need them. Do not stock up with 20 pasta packs, 10 window cleaning solutions, 3 huge shampoo bottles and some weird stuff that you will never ever use but for some reason bought. Important rule in a “save small” strategy is to replace only when the item is gone or really close to that state.
Cloth and accessories.
I know, we all want to be pretty and attractive. Advise is to not buy lots of what you, actually can’t afford. I assume you don’t necessarily need a $600 casual dress or 5th purse in a row from a famous designer. I mean it is good to have it, but limiting quantities is a good technique for sure.
Small cute interior decorating items.
The ones we all can afford and usually often buy. As a result, cluttering out homes and having too much stuff that doesn’t look like decor anymore. Mainly becomes a dust collector. Try to think this way: “I’d rather buy one statement piece then 20 little affordable items”.
Majority of us love salons, SPA’s and stylists. I am among those people as well. The only thing is that in Canada it is expensive and can easily drain your family budget. But I can not entirely give up on that, sorry. That’s why, my solution is to shop the cool deals. Sites like groupon offer lots of affordable deals provided by indeed great quality salons. In plus, often there is extra 20% discount on top as a part of an additional promotion. If you are a loyal customer in spa’s and grooming salons maybe it is good to consider cutting a bit from frequency. Why not?! There are tons of amazing and easy to follow tutorials available on youtube on how to groom yourself. After all, we can do some stuff ourselves and significantly save on that
It is tough to minimize outing for some people. For example, my family’s addiction is sushi bars. Honestly, we have to control our attendance in these places. But we manage it! And you can do it as well! Start little by little. Create your cap.
We all love our kids till the moon and back, but there is no need in tons of toys. Surprisingly, kids can play even with a stick and be happy using their imagination if parents are a part of their daily lives. Kids need parents in their life rather that toys. They need family time. Don’t overload your kids with toys assuming that it will replace your attention. Toy is an artificial attention to your child if you are not involved in playing with it. Don’t buy it frequently. Rather save more for your child current activities and future education.
Keep your utility bills under control.
Do your laundry and dish washing in the right time! In Canada, rates are divided into three separate bands known as off-peak, mid-peak and on-peak. Off-peak rate is 8.7 cents/kWh and on-peak rate is 18 cents/kWh. It is more than double price! More in regards to that you can read here.
Bring your lunch to work.
It will save you a lot. On the other hand, it is OK to go once-twice a month out for a lunch with your colleagues to experience new flavors.
Organize your payments.
For example, receiving your salary bi-weekly use fist one to pay off your mortgage/rent, insurance contributions. Then, use your second one to cover you credit cards, cable TV, phone, utility bills and what is left save apart. Do your payments by yourself on a specific date or automate them. With this tactic is hard to have missed payments, that result interest.
Use your rewards credit card.
Use it smartly and everywhere it is possible (with the condition to cover it on time). Credit cards allow to accumulate points which mean extra money. Points can be exchanged to a gas, retailer stores gift cards and many, many more.
Have disability and health insurance.
It is equally important to not exclude those from the list of expenses when you are trying to save. Yes, it might be expense, but it is justified.There are things we can avoid to buy, but do not ignore your health insurance. Having family, dependents and mortgage you need a plan ‘B’
Define which “save small” areas best suite your family and start a saving adventure today!
As a conclusion, I would like to remind that the best things in life are FREE!
Live healthy, love your family, create a strong friendship relation, be positive, enjoy every day of your live, do not overthink simple things to complicate them. Love what you do and do what you love.
Important to realize, that not only material things can make us happy. Keep this in mind and you will save even more.