The best way of finding out how to save more money is to know how not to waste it. Keeping an eye on your finances is important. Most people over spend and buy things you don’t actually need. Its better to have a bag with £300 inside of it instead of a £300 designer bag with nothing in it. Unfortunately we are becoming a generation of spenders. Buying things we can’t afford to impress people we don’t even like.
Social media is partly to blame. It’s sort of like a domino effect. One person buys a fancy car on finance and shows it on their instagram story. People then see it and get jealous, wishing they had one. Then what happens they go out and get one themselves and the story repeats. But remember, people only show the best 1% on their lives on social media. Be patient, save your cash to invest to make money.
A good rule is to never buy something on credit. The small monthly repayments sound attractive but they will soon add up. Save your money to buy assets that bring in money instead of taking it out. This country is approaching record amounts of household debt. Low interest rates are making borrowing cheap, but at some point these interest rates will increase and you will be in a whole new world of shit. Get a buy-to-let or start a business instead.
Spend money on things that make you money!
A £50,000 purchase of a car will end up as £10,000 over the course of 5 years, a loss of 40K. That same £50,000 put buy-to-let into a buy to let at 6% yield (Average amount) would be £67,000. If you get a good property you could even get 9% or higher interest resulting in a lot more money. Also the property value would have increased given you more equity. A £200,000 buy-to-let over 5 years at on average of 4% price increase (UK average) would be £243,000. Altogether this would amount to a total of a gain of 60K. That’s a huge difference. Just think about that the next time you want to buy that new luxury item.
How to save more money by not wasting it!
Below are the biggest things you can waste your money on. Make sure your not one of them. You will be blowing hard earned cash on useless things. Addictions are hard to over come but with a little bit of self-control nothing is impossible.
Smoking – Smoking is a terrible habit and the benefits are nearly none existence. When you buy a pack of cigarettes your basically spending a small fortune to slowly kill yourself and deteriorate your health. With smoking becoming more and more expensive now is a good time to quit for good and save that burnt cash.
Gambling – Ever heard the phrase “The house always wins?” There’s a reason the BET365 boss was the highest paid person in the UK in 2018. Taking home over 700 million. Gambling can be good fun but you will never be in profit in the long run. Bet on yourself instead, buy self-improvement books, start a business. One trait of an entrepreneur is the ability to take risks. Being a gambler enables you to take that risk and start that business. Remember to make sure they are calculated.
Takeaways and designer clothes – Buying things we don’t need soon add up. Buying just 1 £30 takeaway each week soon adds up to £1560 a year. Save cash buy cooking your own healthier meals. Meal preparation for the week is a good plan if you consider yourself a lazy cook. Meal preparation is also a great way not to waste food and save money in the long run. Buying expensive clothes can be a huge wastes of cash, Most of the time your paying for a logo. Don’t try and be like the kardasions. They’re terrible role models. Save that cash and invest!
Buying on finance – Never buy anything you can’t afford. Paying off interest is a huge squander of money. Debts will soon build up. Only buy something you really actually need. A good rule to follow is to wait 7 days before buying something. Never buy anything on impulse. After the 7 days you will probably realize you don’t actually need it or want it.
Jewelry – Jewelry is expensive and most of the time they don’t hold their value. Don’t pay for a rock for it to just end up in your draw and worry about losing it every time you’re wearing it.
To wrap it up we hope you think about your next purchase and how it will affect you. Don’t be poor to act rich, you’re only lying to yourself and you won’t find happiness. The rich stay rich cause they don’t waste a penny. The poor stay poor cause they spend every penny. Saving and investing will ensure your on the correct path to financial freedom.
We hope you have liked this post on “How to save more money” please feel free to comment below if you have any other advice for people looking to start a business.