The Great Recession of the late 2000s caused a large swath of the population to take a long, hard look at their expenses, cut back on unnecessary purchases, and put more money in savings. Now that the economy is getting back on its feet, data shows that consumer spending is on the rise again, while savings rates are decreasing.
While it may feel good to have money to spend again, you shouldn’t neglect your financial goals or savings account. If you need help refining your financial habits in order to save for an emergency fund, future house, or retirement account, you should utilise effective financial management tools such as Visa prepaid card.
Here are 4 money-saving tips to help you save money:
1) Use a Visa Prepaid Card
Instead of charging everyday purchases to traditional credit or debit cards, use a Visa prepaid card as your main payment method. Visa Prepaid Cards are not connected to a line of credit, so they make the buying process representative of the cash you actually have on hand. It is impossible to overspend, because once the balance on your prepaid card is depleted, any further transactions will be declined. You will have to deliberately reload the card with additional funds before you can spend again. These advantages protect you from spending money you don’t have. Visit www.t24blackcard.com to learn more about how prepaid cards can protect your finance.
2) Create a Financial Routine
A financial routine will protect you from unnecessary and extraneous costs such as bank overdraft fees or overdue charges for bills and loan payments. A financial routine improves money management skills and awareness, which will help you avoid being hit with expensive late or overdraft fees due to account neglect.
To establish a routine, you should have a weekly “personal finance day,” in which you review your expenses, verify any credit, debit or prepaid card receipts, set up bill payments, and reconcile bank accounts. By sticking to this financial routine, you will be more equipped to set up and follow a budget, keep an eye on investments, and best of all, save more money. Keeping a strict eye on your accounts is also one of the best ways to prevent fraud and identity theft.
3) Review the Cost of Your Time
Your time is money, and by considering what an item will cost you in working time, rather than money, you will prevent superfluous spending. For example, the next time you are trying to decide whether or not to purchase an item, divide your hourly wage into the item’s retail price to figure out how much working time the item would cost you. You may be less likely to buy a jacket you don’t need if you realize it would cost you five working hours.
This perspective gives you a realistic view on earning and spending. By calculating how much work time you need to invest in exchange for a good or service, you are able to re-evaluate whether it is worth the sacrifice or not.
4) Smarter Grocery Shopping
An easy way to save money is to eat out less, and eat at home more. However, buying groceries doesn’t automatically save you money. You can easily buy more than you need or make expensive choices if you just show up to the grocery store hungry and without a plan. To prevent overspending at the supermarket, make a list, compare brand prices, and only buy food items. Paper products and toiletries are often cheaper at drugstores.
With an improving economy and more money to spend, the best thing you can do for your finances is to stay diligent in reducing expenses, use effective financial management tools such as Visa prepaid card, and cultivate positive financial habits. Small, manageable changes improve your financial health and can help you feel more in control of your economic future.
Visit www.t24blackcard.com to learn more about how a prepaid card can work as an effective money management tool.