Lower your bills and save more
How can you save when your bills exceed your earnings?
It is impossible. Hence, you must lower your bills to be able to save and save more.
To save is easier said than done. You can actually increase your monthly savings by reducing your bills to the minimum, such that everything you need is covered and more money is available for savings.
In my post about personal finances, I wrote that “your expenses must not be greater than 50-80% of your earnings” to maintain a lifestyle that addresses your finances.
Take note. Therefore, the steps (ways) below will help you reduce your bills and increase your savings percentage by the month, more so, will keep you away from debt zone.
Buy Only What You Need: Do not buy because your friends (people) are buying. Do not buy because the commodity is in vogue. Don’t buy if you do not need it. There is no point buying an I-phone X when you own I-phone 7. Buy only what you need and not what people want you to buy. Necessities such as food, clothing, medicals et al. should be your reason for spending.
Buy for The Future: Step 2 and 1 are related. They work hand in hand. When buying only what is needed, you must also consider the future too. So, if you are buying now, it means, you are buying the future too. If buying now will not solve the future need of such item, then it is not a good acquisition. Whatever you desire must be of quality and must be durable. For example, if you are buying or preparing a meal for breakfast, the meal must truly serve its purpose of eliminating hunger till noon as it provides the adequate nutrients. Other examples here include payment of electricity bills, buying household gadgets and electronic appliances, payment for gas and other services. You must be wise, but because it will be useful now and later.
Always Get Quality At A Cheap Price: This is so possible, you have to be price and quality conscious. Because it is a quality product doesn’t mean it should be expensive. Sample the prices of a product from different outlets (Shops, Stores, and Online). Go for the least price and best quality. Expensive doesn’t guarantee quality too. Do not buy more than needed because it is good and cheap, if you do, you will end up wasting it.
Cut Your Budgets Regularly: Be careful, otherwise, the more you earn, the more you spend. That your salary has been raised doesn’t mean you should also raise your monthly budget too. Instead, the increment should be diverted to savings. Don’t change your subscription plans for Internet and Cable TV because you now have a pay rise. Stick to the plan always. Your spending and budget should be monitored regularly to see what expenses can be removed or reduced.
And finally,
- Be Disciplined: Steps 1 to 4 cannot be followed without this last step. Discipline is needed to condition your thoughts, , and mind to bills reduction. Buying stuff you don’t need, getting more than needed and other bad spending habits can only be stopped by being disciplined. Discipline helps to curb spending excesses.
By following the steps above, you will lower your bills, eliminate debt (if you have one) and have more money to be saved.