Life is expensive! Anything around you seems to be costing you more of your money than it should, and without realizing it, your entire salary could be sold out! Read on for this article if you want to find ways to save money. You can save a lot of money in all areas of life by cutting back on overspending and taking other, more frugal ways. If you are looking to change your entire lifestyle, or just make small changes, these austerity measures will be beneficial to yourself and your future.
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Part 1 of 6: Finding Out the Most Costly Spending
Step 1. Categorize spending patterns
Expenditures for most people typically include housing, utilities, entertainment, food, travel, and health. Start reviewing your spending and credit card statements in the last few months. Add up expenses in the above categories along with other special categories.
- Credit card companies and online banks usually provide a feature to summarize expenses over a certain period of time based on the name of the business where you spent the money.
- If you don't use a credit or debit card, keep track of your monthly expenses carefully. For example, record expenses for buying food, both at the grocery store and at a restaurant.
Step 2. Perform an analysis of expenses
Once the information is gathered, compare the totals in each category. Are your expenses still reasonable, especially when compared to salary?
Step 3. Create a budget
Set a monthly spending target containing the amount of money that should be allocated to each category. For more information, see how to plan finances.
- Enter a target for retirement savings, even if you budget for a small amount at first. Start by setting aside at least 1% of your monthly income for retirement savings. Increase the percentage over time gradually. Over time you will be able to adjust your budget for this allocation. The more funds allocated for old age, the more secure your life in the future. (If you don't think it's important, try talking to someone who's retired.)
- Financial experts will generally recommend setting aside no more than 30% of your monthly income for housing. In some areas, this allocation may not be realistic. If this percentage doesn't meet the housing needs in your area, you may have to move elsewhere.
- In addition to saving for old age, save money as an emergency fund. Set aside money for 6 months of living expenses in case you lose your job or are unable to work.
Step 4. Find ways to save money
Once you've drafted your budget, you'll know which areas need to be reduced. Look for ways to save money in these categories. Handle the biggest expenses first.
For example, if your monthly rent is IDR 5 million and the cost of food is IDR 2 million, consider looking for cheaper rentals. If you're paying off mortgages, try to find a bank with a lower interest rate. At the same time, look for ways to reduce food costs. Avoid eating in restaurants. Use recipes that contain nutritious ingredients, but are inexpensive
Part 2 of 6: Saving on Food
Step 1. Cook food from scratch
Cooking your own food from scratch is a great way to save on food costs. Even though cooking at home, many people use semi-finished ingredients. This does make it easier for you, but the cost becomes expensive. Buy the raw ingredients and cook it yourself.
- Buy raw foodstuffs, not semi-finished. You can make larger quantities of food for less money. For example, it's better to buy a pound of raw chicken than pressure chicken that has been seasoned.
- If you're used to eating a lot, reduce your portions a little bit to save money. Try saving some food for later. Put leftovers in the freezer if you want to eat them later.
- Try new flavors and spices. Chicken breast or fish filets make for a more interesting dish when served with new sauces and seasonings. Try using spices you don't normally use, or European, African, or traditional market spices.
Step 2. Shop while carrying a list of items to buy
Make a list of what you need, and only buy items that are on the list. You can spend 2 or 3 times as much money as you should if you buy things that appeal to you, but aren't really necessary.
- Don't shop when you're hungry.
- If you're creating a weekly menu, use it to build a list of things to buy. Do not switch from the menu greeting one week.
- Take advantage of discounts. The best way to save money is to take advantage of store or product discounts and then create dishes based on the ingredients that are sold at a discount. If there's a big beef sale, you can make meatballs that are perfect for the evening. If there is a discount on bread, make bread pudding or french toast (a type of toast).
Step 3. Purchase a food extender
Certain inexpensive and healthy foods can make a small dish big. For example, adding lots of potatoes to a beef stew will result in a dish that more people can enjoy. Some examples of other extenders include pasta, rice, quinoa and couscous.
Step 4. Eat less out of the house
Restaurant meals are generally more expensive than home meals and can build up quickly. You can save a lot of money by cooking your own lunch and eating out less. This also applies to coffee. Brew your own coffee instead of buying it at a cafe or coffee vending machine.
- Check the menu before you dine. Otherwise, you'll feel "forced to eat" if the food turns out to be more expensive than you thought.
- Take the leftover food home, and divide one dish in half.
- Look for specialty restaurants. Some restaurants offer free or discounted meals for children. Others may offer special rates or daily discounts for police, seniors, or active service members.
- Drinks (especially alcoholic) can be the most expensive dishes. Cut back on drinks to save on bills at restaurants. Drink water.
Step 5. Reduce meat consumption
Vegetarian meals can be cheaper than meat-rich foods.
Be sure to take supplements so that you don't suffer from a deficiency disease (malnutrition)
Step 6. Buy groceries in bulk
Buying perishables in bulk is a good way to save money. Some of the materials that can be purchased include rice, canned food, food packaged in cardboard, spices, frozen food, cooking oil, and household items such as toilet paper and kitchen paper. You can buy it at the nearest grocery store.
- Share membership with friends. Usually, grocery stores charge cheap membership fees. You can share dues with friends to save money.
- Another option is to team up with other people to buy food. You can save money by buying groceries in bulk together. Look for articles on wikiHow for more information on joint ways to shop in bulk.
Step 7. Grow your own plants
The most effective way to save money on food shopping is to grow your own crops (if you have time)! Simple plants like lettuce and other leafy greens can be grown indoors near a window easily. You can save even more money by growing perennial crops that yield continuous yields for years. Some examples of perennial plants include fruits, herbs, and berries.
Step 8. Take advantage of the food aid program
If you can't afford food, the government provides food aid so that you and your family don't go hungry. Maybe you qualify for the aid, or there may be an association or foundation in your area that provides food assistance without any conditions or with no minimum income limit. If you're on a low income, don't hesitate to ask for help, even if it's only for the short term.
If you live in the US, you can apply for a SNAP (Supplemental Nutrition Assistance Program), or apply for state assistance. Minimum earnings requirements are often more lenient than you might think, or there is a sliding scale option to provide partial funding
Part 3 of 6: Saving on Housing Expenditures
Step 1. Consider moving to a cheaper area
This may make you sad, but sometimes you can save a lot of money just by moving to the next village. If you can move to the suburbs, or other less expensive parts of your area, you can save a lot of money.
- Move to a location close to work. You can save on housing and transportation costs.
- Look for cheap homes elsewhere on the internet. Do a search for the city you want. You will realize that the place you live in now costs too much to live in.
Step 2. Find a friend to share a room with
Sharing your room rent with someone else (even if it's only for a few years) can save you a lot of money. Imagine, you only need to pay half the rent, or even more! Ask friends and family if they have friends, family, or coworkers looking for a room. You can also use the internet to find roommates.
Step 3. Negotiate with the landlord
If you have a good rental history, and are a good homeowner, you may be able to persuade your landlord to lower your rent. You can say that you will move if the rent doesn't come down. Show your search results on the internet through your cellphone or laptop that the rent for the house you live in is too expensive. Also say that you will extend the rental of the house for a long time if the price is reduced.
Step 4. Make savings in home ownership
Home mortgage costs are probably your biggest expense each month. Look for ways to reduce these expenses so you can save money.
- Buy bank-owned properties. Bank foreclosed houses are usually sold quickly because the bank doesn't want the money to stand still for too long. Houses like this are generally auctioned at below market prices.
- Consider refinancing a loan that has been going on for years. Maybe you can get a loan with a lower interest rate. To keep costs down in the long run, keep the original payment date, but lower interest will reduce monthly payments.
- Consider a small house. This type of house has a narrow space, but the price is cheap. In the US, the well-known small house company, Tumbleweed, sells a small house for an down payment of around Rp. 84 million, in monthly installments of less than Rp. 7 million.
Step 5. Seek government assistance in your area
If you can't afford a house, there are government assistance programs for people whose income is below a certain level. This service is useful for you to buy a house or even pay part of your rent. If you live in the US, the government provides assistance through HUD (Housing and Urban Development), and many states offer subsidized housing.
Part 4 of 6: Saving Bills
Step 1. Unsubscribe from cable TV
Monthly fees for subscription TV can be very expensive. Some options like Netflix and Hulu+ provide more entertainment at a lower cost than cable or satellite TV. To get the cheapest option, you can install a UHF TV or satellite dish because it is free of monthly fees.
- If you have a computer, you can use an HDMI cable to display content on your television (even if it's just to listen to music).
- The NBA offers a "League Pass", a streaming service for basketball fans who don't want to use cable TV. Check for interference in your area. This is a great option if you want to watch a basketball game without having to use cable TV.
- Similar services can also be obtained from other sports, for example "game pass" in NFL (American football league) matches.
Step 2. Save on credit/mobile phone packages
Cell phones are devices that cost a lot of money. However, if you want to save money, there are plenty of inexpensive options. Many carriers offer prepaid plans that are much cheaper than contract systems, and even if you're already under contract with a service, some companies are willing to pay a termination fee if you switch to their service. If you spend a little time doing an internet search, you might be able to reduce the cost of your cell phone.
Step 3. Insulate the house or apartment
If you live in a cold area, you can incur costs to warm a larger room than you need to. By closing the house tightly and properly, you can save a lot of money that goes into heating the room and boiling water.
- You can save money on heating by simply installing heavy curtains to keep the house warm at night, closing gaps in windows, and placing blankets in gaps under doors.
- Replace stoves, heaters, appliances, doors, windows, insulation, and other home appliances with energy-efficient substitutes. It may be expensive at first, but you've actually saved a lot of money over time.
Step 4. Reduce the use of electrical appliances
Essential appliances, such as washing machines, dryers, dishwashers, refrigerators, and air conditioners consume a lot of energy and make electricity bills soar. Use these equipment as efficiently as possible so that electricity bills are drastically reduced.
- Never leave the refrigerator door open, or start the dishwasher with an incomplete filling. Use the washing machine when the laundry is full, not just a few clothes. Small steps like these will improve energy efficiency in your home.
- Switch to more efficient equipment to reduce monthly costs over time.
- For more information, see how to cut your electricity bill.
Step 5. Limit the use of major electronic devices
If you spend a lot of time watching a big screen TV or turning on other large electronic devices, reduce the amount of time you use to save money.
Use one electronic device at a time. Do not leave the TV on while you are using the computer
Step 6. Change the energy source
You don't have to worry about monthly electricity costs by adapting your lifestyle and building your own power source! Solar panels, waterwheels, and windmills, can be installed for personal use and cost less than ever before.
- If you have your own energy source, your home will still have power in the event of a power outage. You don't even need a large amount of sunlight to power the solar panels. For example, solar panels are very popular in Germany, which gets less sunlight than Indonesia.
- Installing solar panels in a house with average needs usually costs around IDR 140 million. You can borrow money from the bank or apply for tax relief to build solar panels.
- In the US, sometimes the power company will give you money if you generate more electricity than you use. However, this option is only worth doing if you can actually save money in the long run. For more information, check out the wikiHow article on how to install a renewable energy system.
- As an alternative, maybe you can switch to a power provider service at a lower price. However, this option may be difficult to obtain in Indonesia.
Part 5 of 6: Making Savings in Entertainment
Step 1. Take advantage of free entertainment events
Look for cheap or free events organized by local governments. Maybe you don't realize how many entertainment events there are in your city. Check the website of the tourism agency in your area for activities that you and your friends might enjoy.
You may find that the Department of Tourism will show popular movies on Sunday evenings, or that there are free music concerts in the square on weekends. Some areas also often host free (or paid) yoga classes. Many cities host free art exhibitions every year or two. Museums also often offer free admission
Step 2. Buy a game
You can have fun with board games (like chess) without having to spend a lot of money. Once you buy it, you can get free entertainment forever! You can serve food and drink at home, play games with friends, and have fun without spending a lot of money.
- Try playing classic games (Life, Monopoly or Sorry) and new games (Apple to Apple, Ticket to Ride, etc.). You and your friends can also play Game Night every week and do it in turns at other friends' houses.
- Another option that can save you some money is Cards Against Humanity because you can download it for free. The game may not be suitable for children (or people who value politeness), but many people find it very entertaining.
Step 3. Read a book
Reading is fun, cheap (even free), and can be used to spend time in a fun way.
- Start with easy-to-read novels, such as Ayat-Ayat Cinta and Laskar Pelangi if you haven't read heavy literature in a long time.
- Get a library membership card so you can borrow books for free. With the right reading equipment, you can borrow e-books for free.
- You can buy cheap used books online or in bookstores.
- In addition, you can get many books of old works that can be downloaded for free in the public domain. You can read them online or download them first.
Step 4. Make a movie show at home
Instead of buying expensive movies, set up a small movie theater in your living room that family and friends can enjoy. Get everyone involved, then throw a kind of big party, filled with screenings, popcorn, and games. Eventually you'll be able to enjoy cheap or free movies and have fun with everyone.
Step 5. Travel cheaply
Traveling somewhere, both at home and abroad doesn't have to be expensive. There are many ways you can cut expenses to make travel cheaper than you think.
- Choose your place to stay carefully. Try choosing hostels, rooms for rent by locals, and campgrounds to save on lodging costs.
- Plan your trip well in advance to save costs. By planning ahead, traveling can be more enjoyable, and you'll be able to know the location better when you get there.
- Travel outside of the holiday season as air fares can be very cheap. You can search for cheap tickets, find good deals, and buy them at least 6 weeks in advance to get a cheap price even if you're still traveling in the holiday season.
Step 6. Take a trip to a place that is rarely visited by people
Tourist sites are usually expensive, but you can save money by visiting less popular places. A trip like this promises a more challenging "adventure" and a unique experience than simply going from one popular place to another.
Part 6 of 6: Changing Another Lifestyle
Step 1. Be wise with credit cards
Use credit cards wisely and as little as possible with low balances. You can spend a lot of money paying interest on credit. So, prioritize your credit card payments. Always pay the bill every month. If you can't manage it, at least you have to pay the minimum mandatory monthly fee. Only use credit cards for small transactions. The best option is not to use a credit card at all because many people buy things beyond their financial means if they have a credit card.
Step 2. Shop at thrift stores
You can visit the ShoppingBekas.com, Olx, Bukalapak, and other buying and selling sites before buying expensive things. Often you can find new or hardly used items there for very low prices.
- Look for special prices, such as "All T-shirts are available for 1/2 price on Tuesdays" or "Everything labeled pink gets 50% off", etc.. Remember, only buy items that are on sale if you was already planning to buy it.
- Before buying, do an internet search so you can get a cheap price.
Step 3. Find a cheap mode of transportation
Cars are expensive. You can save a lot of money by changing modes of transportation when traveling. This may be difficult to do if you live in a rural area, but you still have other options to reduce car use, even if you don't have to get rid of them altogether.
- If you use public transport, it may take you longer to reach your destination, but you can take advantage of the time in the vehicle to enjoy coffee, read the news, check email, or make a phone call. The monthly subscription fee for a bus or train ticket is usually less than the price of a tank of gas. You don't have to think about car installments, taxes, maintenance, insurance and repairs.
- Try cycling or cycling combined with public transportation. Modern buses and trains provide a place for bicycles so you can combine these two means of transportation to travel quickly. You can save money on gas as well as exercise by cycling.
- Consider buying an electric car, switching to a smaller one, or getting a car you can afford with cash. All of these options can save you money.
Step 4. Find a side job
You can earn extra money in a variety of ways, even if you already have a regular job. Many people can turn their hobbies into side jobs, such as freelance writing, selling handicrafts, or buying and selling antiques. This additional income can be saved or used to meet daily needs.
Tips
- All the suggestions mentioned above are not easy to do. Some of them require you to make great sacrifices. However, the loss of convenience and comfort at this time will be replaced with a better one in the future. This is in accordance with the saying "sick first, have fun later".
- Ask your partner to eat first before going out. Eating out at restaurants can be expensive, and you can save money by eating first before leaving the house.
- Remember, make sure to always take care of your health even if you are trying to live frugally. Don't sacrifice costs for food and other necessities of life (housing, clothing, etc.) just to live more frugally.
- If you want to install solar panels, learn the differences for switching power between AC and DC, MPPT and batteries. Pay attention to the need for air conditioning for all equipment. Almost all running equipment such as computers use low DC voltage. So a simple DCDC system between battery and equipment will probably be much more efficient than using converters and equipment power supplies.
- By making savings, you will also help the environment at the same time.
