Many of us at any point can find ourselves in a position where we have to budget more tightly and really control our outgoings. A reduction in hours, or even job loss, medical emergencies or other unexpected financial burdens can really impact our quality of living. People often have the goal of earning more money in order to give them more spending power, but an increase in income often means an increase in expenses. Living below your means is a great way of saving money, regardless of how much you are earning. Spending less on your current salary can even make more sense than spending more on a higher salary. We have a look at 4 tips to reduce your spending.
1) Get a cashback/rewards credit card
Now credit cards may not be ideal for everyone, but they can help instill financial discipline (or do the complete opposite). As the name suggests, a credit card is basically a financial provider’s money being loaned to you on credit. Using one will help improve your credit within financial institutions and make you a more attractive option for loans and financing in general.
By getting a cashback or a rewards credit card, you can have some of the money you spend at certain establishments returned to you. Credit cards that are partnered with supermarkets for example, may give a percentage back of your total bill if you use your credit card to pay. Rewards cards may accumulate points which in turn may be converted into money or vouchers for future purchases. Using such cards can save you a lot of money in the long run – just be sure to pay off your balance completely at the end of the month.
2) Always look for vouchers
If you order online a lot, you may notice that almost every retail site has a voucher box to input a voucher code when you are about to pay. Make this a rule – never buy anything online without checking to see if there is a valid voucher available first. Download the app or browser extension called Honey and this beauty will scan the internet for valid vouchers automatically when you get to the payment page. You can make huge savings for absolutely zero effort! I personally was able to purchase Hugo Boss deodorant and skincare products with a 50% off discount, with zero effort involved! Honey scoured the internet for potential vouchers and put in the one which had the highest discount.
3) Buy supermarket branded items
Did you know that branded products and supermarket label ones are often made by the same manufacturer? Sometimes they are literally the same product, just with different packaging and this is the only basis for a difference in price. Try purchasing supermarket branded products such as cereals, pastas, tea and cleaning products, and compare them with branded options. Many of us wouldn’t even be able to distinguish the difference yet we’re regularly spending 25% or more on basically the same product!