What tricks can I use to save a lot of money this year?

personal financing

What tricks can I use to save a lot of money this year?

Tuesday, January 17, 2023

Financial fasting is a powerful tool for anyone seeking to take charge of their finances and make real progress toward their financial goals. file image | stock struggle

I’ve heard about financial fasting and how it can help save me thousands each year or month. Please share some financial tricks for fasting. I realize I’m wasting a lot of money, and I’m hoping to start becoming a better saver this year.

I want to congratulate you for making the brave decision to improve your financial well-being by making the necessary changes that will help you save more money.

It is not always easy to realize that changes are necessary. Financial fasting is never an easy decision but it is necessary to save money and achieve your financial goals such as investing or paying off debts and creating a more stable financial future.

What is financial fasting? This is basically a way to consciously restrict your spending to save money. It involves cutting out certain expenses or reducing your total spending for a specific period of time.

It is a powerful tool for anyone seeking to take charge of their finances and make real progress toward their financial goals. Here are some ideas

Determine your spending triggers

One of the biggest challenges of financial fasting is figuring out why you are spending money unnecessarily. Some common triggers include boredom, stress, impulse buying, and social pressure.

Read: Manage your money in 2022

By identifying your spending triggers, you can begin to develop strategies to avoid them. For example, if shopping helps you combat stress, try finding a different way to relax, such as taking a walk or reading a book.

Set a specific financial goal

Financial fasting is most effective when you have a goal attached to it. Whether it’s saving for a down payment on a house, paying down debt, or building your emergency fund, having a clear goal will help you stay motivated and on track.

Make sure you set a realistic goal that you can achieve in a reasonable time frame.

Set a budget

A budget is an essential tool for anyone practicing financial fasting. By outlining all of your income and expenses, you’ll see exactly where you’re spending the most and identify areas where you can cut back.

Don’t be afraid to get creative with your budget – think of ways you can reduce your spending without sacrificing what matters.

You can do this by simply writing them down on a piece of paper, using a simple Excel spreadsheet or using a free online spending tracker or app.

You can also include savings in your budget and have a comfortable savings goal when you start out and then plan to increase up to 15 to 20 percent of what you earn.

Set your financial priorities

Once you take care of your income and expenses, your financial priorities will have the greatest impact on how you choose to allocate your savings.

If you know, for example, that you will need to exchange or purchase a car in the near future, you can start setting aside money for this purpose now.

However, don’t forget your more important long-term goals like retirement planning, and risk sacrificing them for your short-term needs.

Learning how to prioritize your savings goals will go a long way toward painting a clear picture of how you will allocate your savings.

Make saving automatic

You can do this by creating a savings account and placing instructions such as standing orders to be able to deduct money directly from your savings.

This will reduce your interactions with your savings. You can even go ahead and lock it up for a while. Leave money out of your reach.

Be kind to yourself

Financial fasting can be intimidating, especially if you are used to spending money without a budget. That is why it is important to start little by little and gradually build up to more significant changes.

Read: Money Matters: Changing Your Thinking and Spending Habits

Maybe you start by cutting your daily coffee habit or canceling a subscription you don’t really use. As you become more comfortable with financial fasting, you can gradually make bigger changes.

Track your progress

Finally, it is important to track your progress while practicing financial fasting. This can be as simple as keeping a daily spending log or using a budget app to track your expenses.

Seeing your progress on paper (or on your phone) can be a great motivator and help you stay committed to your financial goals.

Mr. Odhiambo is a financial communications specialist in Zamara; [email protected]