Ways to Save Money in 2019

Derek Notman |

The most challenging part of saving money is often just a matter of getting started. You may be thinking you don’t have enough to save, but when you begin to record your expenses, you will most likely find that there are quite a few costs you can cut out, unnecessary expenses that add up over a month or year.

What is financial success to you? We believe that financial success is being in absolute control of your money and assets. Financial freedom doesn't necessarily mean being able to purchase whatever you want, when and wherever you want. It means being able to build a sustainable future for you and your family through a meticulous, calculated financial plan.

Being wealthy is one thing but ensuring that your money lasts a lifetime is another. You cannot achieve financial success, or stability if you will, overnight, it’s a gradual process coupled with a full-proof plan.

Having said that, we’ve put together 4 money saving tips to ensure financial success for 2019.

 

Saving Money

Money saving tips in 4 simple steps

Arguably the most imperative part of ensuring financial success is by gaining full control over your money. How can you expect to build substantial wealth if you spend carelessly? Start with these 4 simple steps:

1.    Where is your money going?

The best way to establish this is by looking at the past 3 months of your bank and credit card statements. You then need to categorize them.

There’ll be quite a bit of calculating to do but try and determine a monthly average of your variable expenses. Pair this with your fixed expenses and you’ll get a good idea of where the bulk of your money is going.  

2.    Where can you cut back?

If there are any areas where you are overspending, such as entertainment, dining and holidaying, then determine where you can cut back and plan to do just that – be mindful. If you are serious about saving for the future, then you will need to prioritize whether some of your variable expenses are essential or not. One less night out on the town, two fewer lattes a week – it all adds up.  

3.    Prioritize

If you have any debts such as a home loan (mortgage), hospital bills or student loans, prioritize to pay these first, because the sooner you’re out of debt, the sooner you can start to build true wealth. Further to this, get rid of your credit card(s). You can’t expect to save if you’re just digging yourself deeper into debt.

4.    Give yourself an allowance

Set yourself an allowance. It’s almost like paying yourself a salary out of your own overall monthly income. This is guilt-free money that you can spend on whatever you please. If you don’t spend it all, carry it over to the next month.

It is super important that this allowance is only allocated out of the money left over after you have paid all fixed expenses, which, in theory, should include your savings.

 

Savings and Investments

Two easy ways to save money, and inevitably set yourself up for long-term financial success is by implementing a financial plan and investing your wealth the right way. You don’t need to be earning millions in order to do this successfully, it’s more about using what you’ve got in the smartest way possible – maximizing your wealth through financial planning.

Once you have gained control over your money, you can save and invest intelligently and productively.

This can be done by focusing on the three following aspects:

  • Financial Planning

When you have an elaborate financial plan, you then afford yourself with a strategy to help you make practical financial decisions in all areas of your life. If you follow this plan religiously, you then provide yourself and your loved ones the greatest possibility of achieving life goals and sustained financial security. 

We believe that by using a "Results by Design" financial planning process, you will stand the best chance of attaining this. What it does is focuses on specific results, and through the design of your plan, allows us to foresee and forecast which solutions are best suited to your situation. We essentially help you establish realistic goals.

  • Investment Management

When you take advantage of investment management processes, you will stand a better chance of meeting your investment goals.

By approaching this properly, you can effectively maximize your returns while minimizing risk & taxes.

This needs to be designed around your return objectives, risk profile, and the tax status of your accounts. 

  • Portfolio Investment & Retirement Income Planning

Creating a stable income is imperative for attaining true financial freedom, especially for individuals that are well on track to retiring in their 30's, 40's, or 50's.  

A steady income requires a precise blend of your current income and future growth while minimizing your risk & taxes.

This can be achieved through our portfolio construction & retirement income projection software so that you don’t have to try and do it all yourself. This is the beauty of technology. This software allows us to design custom income solutions that are low cost, efficient, and incredibly flexible.

 

Money saving in 2019

Easy ways to save money

If you approach the above attentively, you will set yourself up for a financially stable future. With that said, to enable yourself to do this, you need to find the money. So, we have listed easy ways to save money that most individuals are capable of doing.

Sign up for free loyalty rewards programs

Regardless of your location, there are plenty of retailers who are willing to reward you for exclusively shopping at their store. It is wise to sign up for these rewards as you can save a lot of money, especially with retailers where you do your grocery shopping. The more frequently you shop, the more you get rewarded.

Reduce your tax bill

Maintain some of your earnings by claiming back all the tax reliefs you can. All of us are entitled to tax reliefs, and depending on your career, you could claim back much more than you would expect.  

Reliefs such as annual investment allowance (AIA), potentially exempt transfers (PETs), and rent-a-room relief can all save you lots of money.

‘Tax relief’ means you are entitled to:

  • Paying less tax on money you have spent on specific things, such as business expenses if you’re self-employed (travel, dining, accommodation).
  • Claiming back tax or getting it repaid in another way, like into your personal pension fund. 

Shop online

Shopping online can save you a lot of money, especially when you redeem online savings codes, take advantage of ‘deals of the day’, no-taxes-charged, and free shipping offers.

 

Conclusion:

Finance can seem tedious for some people, but we are here to change this perception, we want you to love your finances. Be sure to check back weekly for financial guidance in 2019.

Thanks for reading,

Derek Notman