Not having adequate savings can lead to financial stress during an emergency and difficulty achieving long-term financial goals.
In this context, while figuring out how to save money can be stressful, especially if your income barely covers your expenses, a survey conducted by Bankrate (a consumer financial services company headquartered in New York City) reveals that more than one in three employees (34 percent) reported They live paycheck to paycheck with little or no money left to save after paying their monthly expenses.
According to the foundation, not having enough money in savings may lead to increased stress during emergencies, reliance on credit cards to pay unexpected bills and difficulty achieving long-term financial goals such as owning a home or retirement. Most financial experts recommend saving at least three months of expenses to meet a financial setback such as losing a job or… Debts Major Medical.
Although saving this amount of money is difficult, it is not impossible.
The organization has compiled the 14 best money-saving tips to help people spend less and grow their bank accounts:
- Review your spending habits: Start by determining how you spend your money by reviewing your bank statements. You can identify areas to reduce costs.
- Automate your savings: Set up automatic transfers from your checking account to your savings account, helping you build your savings without extra effort.
- Use cash rewards apps to get cash back on purchases.
- Reconsider your mobile phone provider by checking your phone plan. You may find cheaper options from competing companies.
- Stop tempting notifications: Turn off notifications and promotions on your phone to avoid purchasing temptations.
- Reduce utility bills: Take simple steps like using LED lights and fixing leaks to reduce electricity and water costs.
- Evaluate entertainment expenses.
- Take advantage of free local attractions: Look for free activities in your area such as museums that offer free admission days.
- Shop wisely for groceries: Make a shopping list to reduce food waste and make sure you don’t buy what you don’t need.
- Look for economical alternatives to brand-name products, as they may be inexpensive and of the same quality.
- Explore other banking options: Check for bank accounts with no monthly fees, such as those offered by online banks.
- Compare car insurance rates: Find an insurance provider that offers better rates. You can lower your insurance premiums by looking for new options.
- Use coupons and promo codes: Look for coupon codes when shopping online to save more money.
- Challenge yourself not to spend: Try a period of not spending on non-essentials, and you will see how much you can save.
According to the organization, if you are serious about achieving your financial goals, these tips provide you with a solid starting point. You can also consider enhancing your financial knowledge to achieve more success.
Resources and needs
For his part, Dr. Ahmed Al-Ajmi, professor of economics and public finance at the Faculty of Legal Studies and International Transactions at Pharos University, told the “Eqtisad Sky News Arabia” website that the principle of saving is one of the important things in the lives of individuals.
He explained that saving helps individuals face economic challenges, but the concept of “scarcity” must be understood, which reflects the gap between many needs and limited resources, whether at the level of individuals or society as a whole, adding that the problem of scarcity leads to the emergence of a list of priorities, as it requires individuals to Balancing available resources with urgent needs. He pointed out that financial saving becomes necessary in light of limited resources, as individuals should focus on meeting basic needs and carry over unnecessary expenses to later stages.
He also explained that one of the most important tips related to saving is managing consumption wisely and setting a list of priorities, while setting a maximum spending limit, which contributes to enhancing the ability to save money. He stressed the need to allocate a percentage of income to savings in the form of assets such as gold or savings pots in banks. With the aim of protecting individuals from future economic fluctuations.
Al-Ajmi concluded his speech by emphasizing the importance of financial planning and awareness of the importance of saving in order to keep pace with economic developments and achieve sustainable financial stability.
The most important tools
In turn, economic researcher Yassin Ahmed said that saving money is one of the most important strategies that helps individuals face ongoing economic challenges and fluctuations. In his exclusive statements to the “Eqtisad Sky News Arabia” website, he stressed that there are several steps that individuals can follow to achieve effective savings.
One of the most prominent of these steps is saving, as allocating a portion of income on a regular basis for saving is considered the cornerstone of any successful financial plan. He added that setting a monthly budget that includes revenues and expenses, while setting priorities between necessities and entertainment, contributes greatly to clearly defining spending destinations.
The researcher added that reducing unnecessary expenses is an essential step to support saving, calling for staying away from spending on supplementary and non-essential matters. He also recommended taking advantage of offers and discounts when purchasing basic supplies, which helps improve purchasing power and achieve financial savings.
He stressed the importance of avoiding debt, noting that it is one of the biggest obstacles to financial success and limits the ability to save. He also explained that advance planning for purchases plays a vital role in supporting savings, as good planning helps avoid sudden and costly decisions. He also stressed the need to invest in necessary matters and avoid emotional decisions in purchasing, in order to ensure achieving financial balance and maintaining cash liquidity to face future challenges.
