Smart money

Debunking common saving tips

By Ben O’Connell

This rule says to put 50 percent of your money toward needs, 30 percent toward wants, and 20 percent toward savings.

The savings category also includes money you will need to achieve any future goals. Such a rigid savings scheme might work for some, but in time you might find yourself needing to save a greater piece of the pie. Those with a tight budget are also more likely to face financial setbacks unexpectedly.

The 50-30-20 rule works on paper and does remind us to divide our income before our spending portions it for us. Our lives are always changing though, so your budgeting should too.

Another problem with some budgeting advice is that it stigmatises those who are struggling. Especially online, most tips aren’t intended as actual advice.

Instead, their goal is reinforcing the idea that poor people are poor because of something they have wrong or aren’t doing.

Really, wealth is unpredictable. Being right once can lead to a life of riches. Most billionaires had wealthy relatives and zero fear of failure.

So, ignore the noise of budgeting tips that prefer to chip away at your positive mindset rather than offer meaningful advice. Every little bit counts. Keep it up!

The 30-day rule

The 30-Day Rule is the Internet’s favourite money tip. The rule says that instead of allowing yourself to make that impulse buy to sit on it for thirty days. By postponing every non-essential purchase, you make for a month you have ample time to consider whether you actually need the thing.

The reality is that not everyone can put off a big buy for that long. An item could creep out of the non-essential category and become a high priority purchase.

So, take the time to research, compare prices, and read reviews before making any big buy. You’ll make more informed decisions and avoid regrettable purchases by doing so. Don’t feel like you have to wait thirty days though.

Bulk buying

Eat smarter. The other side to the saved coin is spending, so do it right. Bulk buying is often touted as a money saving strategy, but for those who live alone it can lead to wastage. It’s also unfeasible for someone without the funds to buy all at once. Don’t get me started on cutting back on coffee, an all-too-common money tip.

Keep treating yourself, just make more coffees at home, as an example. Eating out often can also drain your wallet, but is sometimes the only option.

Saving is good, but having money to spend daily on nice things is also crucial. If you saved nearly every dollar, you’d still be poor in spirit.

Diy

Beyond diet, there are many ways to shop smarter. The do-it-yourself approach can be cost effective, but comes with an expensive list of possible risks. DIY mistakes can be costly to rectify, so think before you embark on that major project.

While it can be tempting to always buy the cheapest option, it’s important to think long term. Cheaper products may cost you in the long run, lacking quality and durability.

Strive for a balance between price and condition. In the same vein, skipping on insurance might help you save now, but could cost you in the long run.

In conclusion

When it comes to money saving tips, get critical. It all comes down to your unique situation, so don’t be afraid to change up your strategies.

Even if you start slow and small it’ll make you feel more financially responsible and secure. You work hard to earn your money, so work hard to get the most out of it too. CT