Master 5 Principles To Save More Money
Just spend less money.
Done. Article over. Hope you enjoyed that riveting explanation, leave a tip while you’re here.
Honestly speaking however, spending less is a core way to save more money. It’s an indisputable fact.
For those who ponder over money and it’s core fundamentals, there is a correlation between spending less and saving more.
Conversely, there is a correlation with spending more and saving less.
Whilst this largely holds true, it is not as black and white. Nor, should it be deemed that doing one beats the other.
Spending less, is great, but if you’re just saving for no real purpose - what’s the point.
On the other hand, if you’re spending more in a way that increases your wealth - well, that is definitely not a bad thing.
Choosing where you are and evaluating your next step is pivotal.
For now, let’s assume you’re terrible with your money and need some help
Become more intentional
Check your bank statements frequently. Are you continuing to pay for that image editor app which you used once to edit a picture post Dubai? Or the streaming subscription that you realised your favourite show wasn’t even on? Roughly £688 million is spent on unused subscriptions annually in the UK. That’s a lot. Intentions stem from our desires, beliefs and systems around us. Understand how they impact you and you can save money quickly.
Set a budget
This principle is easy for some and difficult for others. Many financial planners online advertise a 50% (needs) 20% (savings & investments) 30% (wants) framework. This is something that benefits many as the 30% is a fairly sizeable amount, which constitutes guilt free spending without thinking twice. A budget confines you to certain spending parameters for stability, but also gives you flexibility and freedom to spend freely. A budget is a great tool to save money, if used correctly.
Quality over Quantity
Now, this point always seems to counteract the points above, in that one would assume quality good/services = more money spent. Which 8/10 this is likely true (not fact-checked) but sounds right. The point is, spend £100 on a pair of shoes, you can get longevity, comfort and overall satisfaction (generally). Conversely, a £50 pair you could technically buy twice. However, the standard is not as high and the chance of them breaking multiplies, which would result in re-purchasing the same pair or looking for the £100 alternative. In which case you have spent £150 - so remember quality on buying products/services can result in saving more in the long-run.
Avoid what the majority of people do
People think about other people when they buy items. They often don’t think about the inner satisfaction it brings to them. Rather if I buy X - Dave across the street will think Y of me and that contributes to my overall happiness. But once Dave gets XX then my happiness diminishes. A vicious cycle. Rather staying in one’s lane, being content and avoiding major trends, hypes and opinions can save you a lot in the long run.
Emotions should be taken out of the equation
Emotions fuel how we view life and especially when it comes to money aspects. Take the feeling of sadness, you feel sad, you spend on a pizza to get you out of that emotional state, the pizza gets eaten, you are happy for 20 minutes, then the state of sadness returns. You are angry, you spend recklessly. You get a promotion, you are content, you spend hastily. Often our emotions lead us to act in an uncontrollable state and when money is involved that can cause you problems. Ultimately disassociating from our emotions around the time of purchase can work wonders and save you a lot more than you think.
Following the above principles have hugely helped me in saving my money and instead investing it instead.
As humans we are pretty similar when it comes to our perception of money and how we spend - so why not try the above principles and see if it benefits you - if it does, I accept bank transfers to the following account…
