We all know that having a decent amount of money isn’t enough – you need to understand how you spend this money, and you also want to get as much out of it as possible.
If you can stretch your money a bit further every month or year, you’ll have more money left over for an emergency fund or unforeseen expenses, and you’ll also be able to use any leftover money for luxuries – such as an expensive item you’ve been eyeing, or an overseas trip.
However, this can seem like a hard thing to do when you only have a finite amount of money.
Luckily, there are ways of making your money go the extra mile, and that’s what we’ll be guiding you through in this post.
1. Do your Research
There’s a lot of advice out there on how to make your money go further (as you’ll see in this article), and it may be tempting to try all of them in an attempt to make your money stretch as far as possible.
However, it’s important to remember that not all methods will be best for every financial situation. On top of that, there are different ways of going about these things.
For example, what type of savings account is best for you? What is the definition of compound interest, and is it the best option for you? Before you make a decision, be sure you know all your options so that you can pick what’s best for you.
If you’ve ever asked anyone for advice on how to make your money go a bit further, they’ve likely recommended saving. Saving has been the go-to method of growing and stretching finances for years, and there’s a reason why saving is so important.
Saving just a bit of money each month won’t have a big impact on your monthly finances, but these small amounts will grow and grow until you have a decent bit of extra money to your name, without having to have sacrificed too much.
When you know you have enough money to cover all your monthly expenses, budgeting may seem like an unnecessary hassle. But to make your money go the extra mile, you need to understand how you use it each month.
This will allow you to see which areas you’re spending too much money on. You can then make the necessary adjustments and utilize your money more effectively. Click here for some budget boosting tips that can help you save money.
4. Buy, don’t Rent
We understand that buying a house isn’t a viable option for a lot of people, so renting is all they can do.
However, if you can afford to buy instead of rent a house, it’s something to consider. Many people decide to stick with renting, as the monthly costs often end up being the same regardless of whether you buy or rent.
That being said, with renting, you’re constantly paying money and you don’t have anything to show for it. When it comes to buying, you’ll be paying off a house – which is a valuable asset and can later be sold for a profit.
5. Plan for the Future
It’s important to understand that having enough money, for now, isn’t ideal. In an ideal world, you would start to prepare your finances so that you have enough money in the future. This is important because, for most people, they have more expenses as time goes by.
They start thinking about things like buying a house – which is a big expense but can be softened if you start preparing for it early enough. Or perhaps you want to have children.
If possible, try and set up specific funds for when you have a child. Something like a study policy for your child will make a huge difference in your financial situation, especially considering how much education costs.
Another popular tip that everyone seems to share is investing. Just like saving, investing is a way of growing your money without it impacting you too much. Of course, you can choose to invest big sums of money in certain ventures, but even a small investment should be able to offer you decent returns, especially if you do your research before deciding what to invest in.
7. Focus on your needs, not wants
It’s so incredibly easy to be impulsive when it comes to money. Sure, you probably shouldn’t buy a new pair of shoes, because then you won’t be able to cover your rent next month. But that’s a problem for later, right? Wrong.
While we all deserve to treat ourselves now and then, it’s important to only do this after you’ve covered everything you have to pay. This means that needs should always be a priority, not wants. If you struggle to determine the difference, have a look at Maslow’s hierarchy of needs.
8. Save your change
Saving your change isn’t the same as actual saving, since this won’t make a big difference in your finances. That doesn’t mean it should be dismissed, though.
Think about it – how often do you get change when you pay with cash? Almost all the time, right?
If you save this change instead of telling the cashier to keep it, you can end up with a bit of extra money lying around at the end of the year.
Sure, it may not be enough to take you on holiday, but it may be able to cover a meal out, or a week’s worth of groceries.
9. Pay off your Debt
You probably know that, in the finance world, debt is never a good thing. Sadly, it’s inevitable for most people. If you have any debt, you need to pay it off as soon as possible.
This may mean having to sacrifice some things – like holidays or weekly takeout – but overall, it’s worth it. You can’t put a price on financial freedom. Paying off your debt will allow you to move forward with your life.