Like many things in life, there are a lot of misconceptions around the idea of saving money. A significant number of people balk at the idea of putting some of their earnings aside, especially those in lower-income job roles or who are given finances through other means, such as benefits or student loans. When we’re short on cash anyway, it can be hard to put some away, especially if we believe that it means compromising on the things we enjoy. However, this doesn’t have to be the case. Saving effectively doesn’t have to mean giving up on the things you love. Let’s take a look at some effective saving strategies that can help you build savings today without needing to live under a rock.
Adopt a Casino Mindset
Now I know this might seem counterproductive at face value, but bear with me. Pro casino players aren’t out there spending every last penny and praying for a miracle. No, in order to be a good casino player, you need to know your bankroll, create strict budgets and stick to them. Of course, with casino gaming on the leading ranked online casino sites for Canadians, you have the bonus of potentially making a profit from your gaming time. There are various bonuses and incentives that these platforms provide that we should keep in mind, but for the analogy to work, we just need to focus on the bankroll.
A good casino player knows that the time they spend gambling is time spent engaging with a hobby, and so they set aside a certain amount of money each week to use to engage with that hobby. No matter what happens, they never exceed that limit. This is how we should approach non-essential purchases while saving. Set yourself some money aside every week for treats, but once you’ve hit your limit, that’s it. No matter how tantalizing the purchase is, you don’t exceed the weekly limit. Plus, if you really want the item that badly, then come back for it next week. A lot of the time, a little time passing makes us realize that we are not really interested in what would have been an impulse buy after all.
The 50/30/20 Rule
All that being said, you’re probably asking how much, exactly, you should be setting aside for non-essential purchases, as well as how much you should be going into savings for that matter. This is where the 50/30/20 rule comes into play. The 50/30/20 rule is a highly effective budgeting tip. The idea is, when you get your paycheck, or whatever else it is that supplements an income, you should immediately break it down into three sections. If you can put this money in three different ‘pots’ within your online banking app, even better.
The first pot should contain 50% of your income. This is for everything that is considered an essential purchase for you. Rent or mortgage payments, bills and basic groceries. Don’t include subscription services here, as technically, these are not essential, and this pot is just for things that you need in order to stay afloat. After that, 30% is for fun. This is where money for your subscription services will go, alongside funds for meals out and treats for yourself. This is basically the ‘fun’ pot and is proof that saving does not mean giving up on the things you find enjoyable. Speaking of savings, this is what the 20% pot is for. 20% of your income, set aside every month for savings, will enable you to build some security in no time at all.
Look For Cheaper Alternatives
Another highly effective way you can save money without giving up on the things you love involves looking for cheaper or even free alternatives to your hobby. Now, we know the importance of attending classes for certain hobbies; it is not just about the activity but about getting out and socializing. However, there are ways you can cut the funds a little and still have fun. Let’s imagine you take guitar lessons once a week, while you save, could you cut the in-person lessons to once a fortnight and supplement the lost lesson with free online tutorials? Similarly, if you have any kind of regular fitness classes, chances are you can find the same kind of workout content on free platforms such as YouTube, and can skip a few classes for at-home fitness sessions instead.
Also, if you are looking for a new hobby, but know you don’t want to spend a lot of money on it because you are saving, then there are countless cheap activities you can begin. Anything from colouring, knitting and sewing, to learning to bake, reading, hiking or biking can all be done with little expenditure on your part. Use the internet as your biggest resource and find cheaper deals and cheaper alternatives to fun activities, which will allow you to relax and wind down without breaking the bank.
Conclusion
The majority of us are in a position where we find money stressful. The cost of living is constantly increasing, and it can be easy for our bank balances to dwindle without us even noticing. With this in mind, many people are likely to find the idea of saving impossible. Or at the very least, we might believe that in order to save money, we have to sacrifice all the things that bring us joy. But this really doesn’t have to be the case. Making smart decisions and knowing how to make a budget and stick to it are highly effective ways to help you save money without giving up on the things you enjoy.
