5 Traditional Ways to Save Money That Still Work Today
Technology can be very useful when it comes to finding ways to save extra money. There are apps you can download onto your smartphone that help you track your budget. You can even get extensions and plugins for your browser that automatically apply discount codes to your baskets online. However, the digital way isn’t the only way to save.
There are still plenty of old-school money-saving tips out there that can work to give you more control over your spending habits. Many of these traditional options are a lot more powerful than you might think.
Here are our favorite conventional methods for saving money.
Use the Envelope System
The envelope saving system is one of the best-known budgeting strategies in the world today. The premise is that once you’ve paid your bills and set your cash aside for investments and savings, you pull the rest of your money out of your bank account and divide it into spending categories like clothing, entertainment, groceries and so on.
To improve your chances of success, actually, write the name of each category on envelopes and place the money inside. Once you’re out of cash in an envelope, you can’t spend anything else on that category. It’s that simple. One way to make this method even more effective is to add any of the receipts you get for the items you buy into the envelope as you go, so you can see how you spent your money later.
These days, it’s easy enough to live your life without ever having to deal in cash. As long as you have a phone or a card available, you can pay for practically anything that way. However, this often means that it’s straightforward to over-spend, as you’re less likely to notice over-spending when you’re doing it digitally.
While there are certain things that you might not be able to pay for in cash, like your loan repayments and your utility bills, you can pay for things like entertainment, food, and hygiene products without plastic. Switch to money and pay attention to how much more cautious you become when counting the pennies.
Freeze your Credit Card
Loans and credit cards aren’t bad things. They help you to access the money you need when you don’t have that cash-on-hand. However, it’s easy to become too reliant on your credit cards, and that’s when problems start to appear.
If you notice that you’re using your credit card for everything, dunk it into a bucket of water and freeze it. That way, even if you decide that you do want to use your credit card, you’ll have plenty of time to think while the ice thaws out. This will force you to be more cautious with your purchasing decisions.
Keep a Separate Saving Account
The phrase out of sight, out of mind applies to a lot of saving strategies. When you’re saving money for the future, but you can see that cash in your bank account, it’s hard to tell yourself that you can’t afford to pay for that extra takeaway, or a night out with friends. On the other hand, if you move the cash that you want to save to a completely separate account, it’s less likely to tempt you.
Open a new savings account and move all the money that you want to keep for a later date into it. You’ll also be able to set up an automated schedule with your bank where you can transfer money from your regular monthly payments into your savings account. This means that you’ll be less likely to accidentally spend the money you want to save.
Learn to Make Instead of Buy
Have you ever noticed how your grandparents seem to know how to do everything? Your grandad can always fix a broken sink, and your grandma is excellent at making clothes last a lot longer than they should. The reason for that is that older generations were forced to be more self-reliant. They couldn’t afford to pay for professionals to do jobs on their behalf.
Taking the same approach in your own life can save you some serious cash. All you need to do is commit to making things instead of buying them. Grow your own vegetables in the garden with your family. Make your cleaning supplies at home with some basic kitchen ingredients. You can even learn how to do basic plumbing and handyman jobs with the help of videos online.