Here are the 10 money saving tips that have worked for me which would very well work for you too. I have acquired them by own experience of money (mis)management and from my friends, books and some old financial advisors. I am going to publish it as a two-part post because, it is fairly long and I think it is worth contemplating on each of these five aspect for a while. I am eagerly waiting for your comment as usual.

1) Pay yourself first
When the pay check comes, who comes to our mind first? Right, the bills. But, if you choose to set aside a specified sum for savings, you have done the first step in creating a secure future. The savings account you transfer should be without an ATM card access and the savings are for your major pleasure – for the year-end vacation, or for your dream car.

Additional tip: Ask your bank if they provide an additional low-fee account that provides high-interest-rate (up to 8% returns) for the savings. They are termed as investment accounts or award-saver accounts. I have a Commonwealth bank’s award saver account which penalises me (with a fee of $5) if I don’t deposit anything in it for a month. So, I make it a point to transfer at least $50 a month to avoid penalty fee.

2) Save before you spend
If you set aside a minimum amount out of every week’s pay regularly for a year, you would be surprised by the amount of money you had saved by the end of two year period. I am not saying that you should starve to save money. But, whatever little you can set aside, just do it. It could be as little as $50 a week or even $25 a week. Just transfer it and then you start spending the remaining money.

3) Don’t save cash
Saving in the form of cash (notes and coins) in a piggybank does not work (at least for me). When I have got some cash in hands, I would always find a way to spend it. I always pay from my card. At many a times, I have avoided unnecessary expenses, just because, the shopped did not have a debt card transaction or EFTPOS facility (thanks heaven!).

4) Carry a shopping list and stick to it
Prepare a shopping list before you go for shopping. This not only avoids the impulsive buying and you may tend to buy some unnecessary things that you may not require. Look for an item you would like to purchase and watch out for specials and choose that is of low price and good quality. Don’t buy a combo offer (‘Buy 3 to save $1’ kind) unless you need them. Most often we tend to buy 3 packs to save few extra cents only to dump one of them in the dust bin (after expiry).

Additional tip: Do not shop when you are hungry.

5) Budgeting every day’s expenses
I hate to sit down and write every day’s expenses – just like you. When I did it for one month and saw the benefits, I have found a new financial wisdom. I knew where my every dollar went. It is easy to remember your daily expenses and not down them in a small pocket diary. At the end of the month, just add them in categories, such as Groceries, Clothes, Food, Movie and other things. You would be surprised by the financial awareness it creates for you.

Contemplate on these five tips and say if they are worth.

The second part of the post is to be continued tomorrow.

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