It’s a common mistake to think that you can’t start saving because you don’t have much money, but that’s like saying you won’t go on a one hour run because you don’t have the whole day off to exercise – it’s counterproductive and unrealistic.
There are a few simple ways that can help you save even in these times when many probably can’t afford putting a lump sum on the side. Of course, they will take a little bit of time and planning – you can’t have it all.
Track Your Expenses
Just for fun, open an Excel spreadsheet and log down the amounts you spend on different items throughout the month. You only need to do this once and you’ll quickly see what are the costs you don’t even notice. While you probably can’t do much about the big things like the rent, the little things can add up to much more than you thought. Two takeaway coffees at $2 every day and you end up with $120 per month just for the coffee. Now, you don't need to cut it out completely but if you take it down to once a day, you might cover your phone bill with it.
Compare Prices
Stores have different markups and by doing a little research you can find that buying all your groceries at one place isn’t the best idea. Of course, there are big differences throughout the world – in the West, your shopping options might be limited to different brands of big chain stores that keep a close eye on their competitors and adjust their prices accordingly. Here in Egypt, micro family-owned businesses are very much alive and sometimes the price difference between them and the supermarket can be up to 5x. There can also be a huge difference in price between local and imported products.
Go For Cheaper Where The External Factors Don’t Matter
Sometimes we’re picky for no valid reason – we pay more because we like the packaging, or we want individual packaging or we think the product is of a higher quality because it’s foreign. It’s important to put things in perspective; is it really worth paying more just because it’s “Produced in Italy”? I have nothing against Italian products, I actually think they have some amazing brands but I wouldn’t buy Italian tomatoes in Egypt after trying the local ones and tasting how delicious they are!
And another very important advice:
Put Some Money Aside For Pleasure
When you save every little penny and never treat yourself, one of the two things might happen:
a) You get into an unpredictable situation where you lose the money you saved and you wish you at least spent it on something more pleasurable
b) You end up being so frustrated that you spend your savings in a spur of the moment on something completely meaningless that only gives you a very temporary joy
It’s better to plan in advance – once you’ve saved up your target amount for something you really wanted, you’ll feel so much better.
I know what I would go for, now what's your choice: saving big, or saving little and often?