58% of Americans have less than $1,000 savings, GOBankingRates found these numbers in a survey conducted in 2018. A large part of people lives paycheck to paycheck which is a bigger concern.
You can’t create big wealth without stepping out a small step of saving a small amount of money. If you are determined to save more money, I have 5 hacks to help you achieve your saving goals.
#1. Compare Before Purchase
Impulsive buying can be loss-making because you buy something that you don’t need but you have lost your precious money on something that is not providing you enough value.
Comparing before purchase, lets you logically think of what is required and what is desired. You make a list of features essential for you in a product. You then compare different products, make a list of features, and then match your defined list.
You can easily figure out which product is more close to your required features as compared to the other products.
This hack will save you lots of money if applied consciously.
For example, rather going for any random stockbroker that you have seen in a lucrative adv. Of 100% cashback on account opening, you should first understand what benefits you will get and how much you will be paying to the broker in the long run.
Compare demat account of different brokers and compare what benefits they are providing against the charges. Then opt a demat account that has maximum features as per your requirement.
Otherwise, you will save a meager amount of money in the account opening cashback offer, but later on, you will have to pay high brokerage fees on every order and some hidden charges can be included that will make a discounted deal into an expensive affair.
Another example, if you are inclined to invest in life insurance, then I would suggest you buy any insurance online and avoid paying insurance commission to any agent.
You can easily compare the products online and make an informed decision, rather than choosing a crap that will be beneficial to the agent only, not you.
#2. Try the ”72-hour Test”
You can easily wipe away your savings if you have an impulsive buying nature. One strong urge to grab a lucrative discount offer would disturb your savings strategy.
The best way to tackle impulsive buying is to use Carl Richards’ “72-hour Test”.
Carl Richard discusses the “72-hour test” in his famous book “The one-page financial plan”. According to the “72-hour test”, for all your non-essential purchases, wait for 72 hours instead of buying immediately.
This will help you shift your decision making from the emotional part of the brain to the logical part of the brain. This technique would save you from wasting money on non-essential things.
#3. Trade with Proper Strategy
Intraday trading is a known way to make quick money. But it can make big losses if not done with proper strategies.
In the starting, focus on learning intraday trading strategies, rather than aiming big profits. This would help you to save huge potential losses.
Once you learn a single strategy that work accurately for minimum 80% times then you can start thinking of taking big risk.
#4. Use Negotiation Skills
Negotiating is a skill that you can learn and master.
Famous financial guru Ramit Sethi says -” You can negotiate on most of the things but not everything.”
But in general, people usually don’t negotiate and pay more every month. There are many services like insurance, credit card annual charges, gym membership or cell phone plan that you can negotiate with the service provider and they can either provide you a cheaper plan or waive you off unwanted charges.
For example, if you are an old credit card owner, you can call up their customer service and politely tell them about being an old, loyal customer who pays back credit bills in time. You can ask them to waive off the annual fee.
These companies pay thousands of dollars on promotions to grab the customers, they won’t let you go off for a couple of dollars.
#5. Wait for the Sale
If you need to buy something now, then you will be paying the full price for this product. If you can wait, for any upcoming sale, you can easily save some money on that stuff.
You can use this method for electronics and seasonal clothing. You will be able to save 30%-40% easily.
For example, if you want to buy the iPhone that is recently launched that would cost you $1000, but if you plan to buy the same iPhone during Black Friday or Christmas sale, you can easily save $150-$200 for the same.
You can’t create wealth if you don’t start your savings right now. You have to define your financial or retirement goal, select the saving instrument, and save consistently to achieve that goal.
You can use these hacks that I have discussed to save more money to even achieve a $1 million goal (if that is your suitable number).
Be disciplined, be consistent, and automate your investments to reach the milestone.