According to some experts, your budget should be divided as follows:
- 50% for basic expenses (housing, food, transportation, services, among others)
- 30% on personal expenses (hobbies, recreation and leisure, clothing, beauty)
- 20% allocated to savings (for travel, buying a house, in case of unforeseen events, for retirement)
There’s a big difference between theory and practice. You might find it impossible to achieve this balance, considering your salary isn’t enough, and you’re always struggling to make ends meet at the end of the month.
However, some little tricks will help you save money faster.
Learn how to save money with these 30 tips
- Eat homemade. Preparing your own food (whether for eating at home or taking to the office) is a great first step to saving money, as it’s cheaper and you’ll have more control over portions. What you spend on lunch one day can buy you fresh ingredients to prepare several meals, thus reducing the amount of money you need to allocate to food each month.
- Reduce your consumption of services: The less you consume, the less impact it will have on your budget. Some ideas and recommendations:
- Make sure you don’t have any water leaks or gas leaks in your home, as these pose a risk and will increase your monthly bill.
- Save on your cell phone data plan by always connecting to Wi-Fi at the office or at home.
- Use air conditioning and heating sparingly.
- Turn off and unplug electrical appliances when not in use.
- Don’t waste water: take short baths; don’t leave the tap running while washing dishes or brushing your teeth; turn the tap off tightly; if you can, reuse water.
- Sell what you no longer use: Do a thorough cleaning and identify items, appliances, and clothes that you no longer use. List them for sale online to earn extra income and save money quickly.
- Eliminate unnecessary expenses: Creating a budget and tracking your spending is an efficient way to identify unnecessary expenses that can be reduced. Those treats, desserts, subscriptions you don’t use, impulse purchases— eliminate them!
- Compare prices: don’t go for the first offer. Check prices at several stores or supermarkets; you’re sure to find opportunities to save some money. There are many online price comparison sites that let you know where to find a product at the best price.
- Make a shopping list: When you go to the supermarket, take a list of what you need and stick to it. This will help you avoid going over budget or buying too much. Also, buy seasonal fruits and vegetables, which are usually better value.
- Shop off-season: stores often have sales when their clothes are no longer the latest styles. Use this to your advantage and take advantage of the discounts.
- Buy clothes at markets and fairs: you can find secondhand clothes at excellent prices, allowing you to save money. You can also support local artisans by purchasing their pieces, which you can sometimes get at even lower prices.
- Avoid using your credit cards: they usually have high interest rates and increase your debt. Don’t use them unless you have no other option.
- Avoid impulsive, unplanned purchases: whims, luxury items, or things that are not essential. Do not use them unless it is a necessity, such as basic necessities, emergencies, or accidents. If you used them, pay your installments and interest on time, so as not to increase the debt.
- Don’t be impulsive: before buying anything, especially non-essential items, analyze: do you really need it? Is it within your budget? Will it create debt?
- Consider debt consolidation: this is an option if you already have multiple debts. You’ll be able to manage your finances better by paying a single installment and getting out of debt faster, giving you the opportunity to start saving sooner with a larger amount.
- Review your bank’s terms and conditions: account maintenance fees, interest rates, annual fees, etc. Each bank has its own terms and conditions for its products and services. Find out what they offer so you can factor them into your budget and compare them with other institutions. A switch might be in your best interest.
- Support local products: Shopping at your local market can lead to significant savings. Find out which one is near your home and see what it offers.
- Start a savings plan: This involves depositing a set amount of money every month for a period agreed upon with the bank. At the end of the term, you can access your savings.
- Don’t spend more than you have: this is fundamental when managing your budget. Only apply for a loan or use your credit cards when an unexpected expense arises or when you need to make a large purchase, such as buying a house, a car, or investing in your business.
- Define financial goals: giving your dreams a name, but also deadlines and monthly payments will motivate you to save to achieve them.
- Change your mode of transportation: If you’re going somewhere close to home, walk or use a bicycle to save money on bus fare or fuel. It’s also a way to exercise, so you win all around.
- Make investments: Research the different options where you can save your money in Colombia. There are alternatives such as bonds, investment funds, certificates of deposit (CDs), scheduled savings plans, or foreign currency accounts.
- Try new free plans: each city offers its own low-cost entertainment options: have a picnic in the park, research free admission days at museums, or find out what free (or cheap) music events will be happening in your area.
- Don’t link your cards to apps: It’s become very common recently to save your credit card information in various apps for deliveries, tickets, clothing, and mobile payments. Stop doing it! You avoid falling into the temptation of buying and making unnecessary purchases.
- Protect your banking details
- Withdraw only the necessary amount: If you need to make cash payments, only take out what you need from the ATM. It’s much easier to make those small, everyday purchases when you have cash in your wallet and avoid running out of cash quickly.
- Don’t split the bill: When we go out with friends, we don’t all buy the same things, and often other people’s spending is several times higher than ours. If you divide the bill equally, you could end up worse off and spending more than you planned.
- Make saving a family activity: involve your family in the process so everyone works as a team and feels more motivated to contribute. Set family goals you want to achieve with the money you save.
- Use coupons: some store chains offer discounts or special promotions to their customers, so use them! There are also websites dedicated exclusively to offering discount coupons.
- Join subscriber clubs or loyalty programs: some brands try to attract customers by offering benefits for being part of their “exclusive club”: discounts, prizes, gifts, and more. Some are free.
- Eliminate vices: smoking not only affects your health, but also your wallet. The same goes for drinking, gambling, compulsive shopping, coffee, and other vices. Work on quitting them, as they will benefit you in many ways.
- Take a vacation at home: to have fun on your days off, you don’t need a luxurious trip to faraway lands. Take the opportunity to get to know your city better, discover new places, take your children to historical sites, and explore its parks. You’ll be amazed at what you find, and you’ll have so much fun while saving money.
- Buy in bulk: if you have a family, it’s definitely worth buying from chains that sell their products this way. If you buy by the dozen, by the kilo, or by the gallon, you’ll get better prices than buying retail. Try it and see for yourself.
- Reduce your reliance on services you can do yourself, such as laundry, ironing, or general cleaning. Plan to take care of these tasks without turning them into extra expenses.
- Be patient: results won’t come overnight, so focus on following your savings plan and the dream of achieving your goals, so you don’t lose motivation at any point.