Saving money is a necessity nowadays. With the current rate of inflation our spending power is much smaller then before. Everything is getting more expensive and salaries are not rising fast enough. It is important to stretch the dollar as much as one can and not waste the hard earn money.

Here are 5  tips on how to save money.

1. Have a budget.
   It is important to know how much money comes in how it gets spent. I have a spreadsheet which lists the income and  expenses every month.  It is necessary for me to know where the bulk of my money goes and in which areas I am able to be more thrifty in.
2. Do not buy items on a whim.
   Impulse purchases are seldom on items which one really needs to use. Most of the time the item may end up as a white elephant and it is a “wasted” purchase. It would be more prudent to ponder on whether it is necessary to purchase that item before buying it.
3. Look out for bargains and bulk purchases.
   You maybe able to save a bit from coupons or discounts on the items which you use. Sometimes it make more sense to buy in bulk if you use a lot of the item or stock up on it. Eg: Toilet rolls and washing detergent.
4. Have a shopping list
   Having a list will ensure that you only get things that you need and don’t end up with extras of one item which you may not need so many of.  A list will also remind you about the items you need to get so there will not need extra trips out to get the items you missed the first time around.
5. Be focused in your shopping
   I always time the time I need to spend at the supermarket or shopping mall so that I don’t waste time endlessly wandering along the alleys and get tempted to buy more then I need.

Do you have any other money saving tips to share?

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