The year gone by has depleted many people’s savings and set them back on achieving several personal milestones. But this year, you can effect several corrections that help you save more money and get your financial life back on track. It takes a few tweaks and a lot of fiscal discipline – but the end result is worth every minute of your time!
This article presents 5 tips to save money in the year 2021:
#1 Use your credit card instead of cash.
Most people argue that a credit card tempts one to become an irresponsible spender. But is not the credit card that prompts irresponsibility, but an individual’s lack of self-control. A person that splurges is equally comfortable spending a wad of cash as they are swiping a credit card. Using a credit card instead of cash actually results in savings over the long run. Firstly, a credit card swipe leaves a record of transactions, while spending cash does not. Secondly, there are several credit card offers in Dubai that help you get reward points, discounts, experiences, or gifts for swiping the credit card. Annually, credit card offers in Dubai result in several AEDs worth of savings per year.
#2 Set aside ‘hobby money’ every month.
Every person has a hobby that they would like to indulge in. Sadly, you may not always be flush with extra cash to indulge yourself. Planning an overseas trip or starting a business or even taking a sabbatical requires saving, or borrowing a personal loan, and cutting many corners. That is not to say that you cannot indulge your passions – do so by setting aside a fixed portion of your income in a separate savings account. Do this every month and you will soon have a ready cash to spend on your next dream!
#3 Curb unnecessary expenses.
You cannot save money unless you spend less. If you study your spending habits, you will find many areas that need pruning. For example, instead of eating out every week, go out once a fortnight. Carpool instead of driving to work every day. Go running or cycling outdoors instead of buying an expensive gym membership. The more you cut down on expenses, the more money will be left over at the end of the month.
#4 Start a side hustle to pay the bills.
Bills and taxes take up a lot of your income. You might also have other mandatory expenses like loan EMIs to pay. Why not start a side hustle that generates enough income to pay the bills? If the bills are paid, your income from your main job is left intact for other expenses. This translates to greater savings and more money for investments. Look for ways to monetise your passions, and how you can take online classes after work or on weekends to create a second stream of income.
#5 Shop online during sale season. Online shopping has several benefits, the biggest of which is that you save a lot of money on deals that are available practically all year. There may be some credit card offers in Dubai for heavy discounts and reward points for shopping at member outlets. The biggest savings on online shopping happen during festive season sales, where you can pick up double the number of items in the same amount of money that you were looking to spend. And don’t fall prey to the idea that you cannot buy clothes in bulk online because they will not be in vogue a few months later – trends don’t change as often as the fashion industry would like us to believe!