To avoid running out of money before it’s time, try these frugal ways to spend your pocket money so you can set aside some savings.
Do you have a tendency to spend extravagantly to the point where you can’t save? Well, you’re in the right article, folks, because this time we will discuss money-saving tips you can try.
Don’t want to repeat the same mistakes in managing your pocket money? Or perhaps you’re starting to realize that spending every bit of your allowance without any savings will only lead to regrets in the future? If so, does it mean you’re looking for ways to save your pocket money? Regardless of your goal, you can start adopting frugal spending habits right now.
You might have the determination and intention to implement money-saving techniques for your pocket money, but you’re not sure where to start. Actually, you can easily find and get tips on how to save money while spending. If you’re still unsure, try starting with the steps for saving pocket money that The Inspire Muse has summarized below.
In summary, there are several methods that you can try to save money:
01. Create a Budget Plan and Financial Records
Before delving into various ways to save money while spending your pocket money, the first question you need to address is: What are the regular expenses you have to deal with? What are the items you might need to purchase from time to time? Managing finances can indeed be challenging, especially if you find it bothersome or unnecessary to record every expenditure and income detail.
In addition to routine expenses, you can also start crafting a budget plan for upcoming expenditures that you may need to cover in the coming weeks or months. For example, vehicle servicing or similar occasional expenses that don’t occur daily but should be accounted for.
Creating a budget plan for every need, whether daily, weekly, or monthly, can greatly assist in financial control. Once established, the budget plan should not remain merely a plan; it must be implemented. This is undoubtedly one of the crucial tactics for saving your pocket money.
If the budget plan is formulated before you spend or make purchases, expense records should be made after the expenditure. No matter what activity prompts you to spend money, jot it down! You can create quick notes on your phone and later organize them into a more structured format when you’re at home, either directly in a dedicated expense book or through applications on your phone or laptop.
02. Not Just Short-Term, Set Long-Term Financial Goals
Have you ever set financial goals, both short-term and long-term, as a way to save your pocket money? These financial goals can be established on a weekly or monthly basis, serving as a strategy to save money. This way, you can ensure that you have a specific objective to achieve within a certain timeframe.
For instance, if you’re aiming to buy a new smartphone to support your daily needs, including studying and running a business, you can maintain frugal habits until you’ve accumulated the necessary funds. If the cost of the smartphone is reasonably attainable, you can create a short-term plan. However, if it can’t be achieved in the near future, it’s better to include it in your long-term plan. This applies similarly when you need to purchase other items or necessities that your current funds can’t cover.
03. Create a List of Fixed Expenses
One of the challenges in managing finances wisely is uncontrolled spending. This often happens and can even leave someone financially drained, preventing them from saving money. So, how can you save your pocket money while dealing with this issue?
If you’re seeking tips for spending money wisely and being disciplined in saving, you can start by tracking all your expenses. This list of expenses should be created meticulously. Maintain consistent records, no matter how small the amount you spend on purchases or specific needs.
By doing so, you can control your spending and align it with your income or available funds. This practice can also help prevent you from unnecessary spending, where temptations to buy things you don’t actually need often arise.
Having a list of expenses will let you know where your money is going, enabling you to identify routine costs or expenditures such as basic necessities like food, transportation, and more.
04. Always Break Down Your Shopping List Before Shopping
Sometimes, shopping can feel like a trap. You might end up buying things or items that you don’t actually need or that weren’t part of your spending plan for the week or month. To avoid this, which can lead to an increase in expenses, try breaking down your shopping list. This is something you should do before you start shopping.
Create a simple list that includes expenses or needs that you must fulfill with the available funds. This frugal strategy for spending your pocket money will set limits for you, allowing you to exercise self-control and only buy what is truly necessary.
For items beyond your main needs that you might need to fulfill in specific situations, you can note them down for later inclusion in your weekly or monthly spending list. By breaking down your shopping list, you can also trim down your expenses and allocate the remaining budget for other needs, including saving.
05. Compare Prices
It may seem trivial, but comparing prices before making a purchase can be incredibly helpful. This can be another approach you try to be more frugal with your pocket money. While it demands patience and attention to detail, the benefits are substantial – no matter how much money you save by finding a cheaper product of the same quality.
This money-saving tip isn’t just for students but for everyone looking to cultivate financial discipline. This positive habit will have long-term benefits, as you’ll become accustomed to managing your finances and even setting aside money for savings or other needs. Have you tried this method of saving your pocket money before?
06. Seek Additional Sources of Income
Why does your pocket money never seem to be enough or run out too soon? There could be various factors at play, such as overspending or sudden spikes in market prices. If applying monthly budgeting techniques isn’t feasible when prices rise, do you know what the solution is?
Seeking additional sources of income can be one of the solutions for saving your pocket money! This means you need to have an extra stream of income. Nowadays, there are many opportunities to increase your earnings. Even better, these methods are often enjoyable and flexible. You could try starting a side business or working as a freelancer.
07. Set Aside a Portion of Money Before Spending
Practicing wise spending habits with your pocket money doesn’t have to be stressful. You can still enjoy life by purchasing things that you truly need. It’s also perfectly fine to occasionally buy items you desire but remember to set aside a portion of your money before spending.
For example, when you want to buy your favorite drink, you can set aside a portion of your money. Then, you can look for deals like discounts and use them for your shopping. This approach is not embarrassing at all; in fact, it’s commendable. It allows you to enjoy what you want without squandering your money. You can also apply this method when you’re aiming to adopt a frugal lifestyle or establish more focused financial management.
08. Use the 50-30-20 Method as One of the Ways to Save Your Pocket Money Wisely
Still unsure about how to manage your pocket money? You might have heard of the 50-30-20 method, which can have a positive impact on your financial situation.
While it might not be easy to implement, it’s worth a try. Over time, you’ll get accustomed to this monthly saving method. So, how does this method work?
Allocate 50 percent of your pocket money for essential needs like transportation and food. If you have debts, you can also use this portion for that purpose. What if you need some entertainment? Dedicate 30 percent of your pocket money for this purpose. Now, the remaining 20 percent should be saved.
This method can be applied by anyone, including those living away from home, as a way to save money while being a student living away from home. Start by listing your basic needs. Calculate the total amount needed and allocate it from your available funds or pocket money.
The sooner you start applying this method for frugal spending of your pocket money, the quicker you’ll learn to live economically, which will contribute to increasing your savings balance.
This method can be implemented regardless of the amount of pocket money you receive or have for a certain period, whether it’s weekly or monthly. Strive to be consistent to feel the results someday.
To learn more about the 50-30-20 method read this article: The 50-30-20 Rule: Saving Your Way to Financial Freedom
09. Try Daily Saving
Saving money can indeed be challenging! The statement is not entirely wrong, but it’s not always true either. Saving money isn’t as easy as the theories and tips we receive, but that’s the challenge. No matter how much money you have, it will always run out if you don’t allocate a portion for savings.
Your savings should ideally have a dedicated budget, around 20 percent of your available funds. If that seems difficult, why not try daily saving? Start with a small amount and gradually increase it based on your improving financial situation and capabilities.
Saving will become a part of you, and even a pleasurable habit, once you get used to it – especially if you truly understand the frugal ways to spend your pocket money.
10. Get Insurance to Minimize Sudden Expenses from Unexpected Risks
In essence, pocket money isn’t limited to just school children or students. Adults who earn their own income typically also require pocket money, even those who are married. The amount varies depending on the budget each individual sets.
A frugal way to spend your pocket money is to have insurance tailored to the specific type of coverage you need. This way, you can mitigate sudden expenses from unexpected risks.
No life is without risks, whether they are related to life, health, vehicles, properties, and more. These risks often lead to additional expenditures beyond your regular spending. Naturally, these expenses occur outside of your planned budget.
For example, if you suddenly fall ill and require hospitalization or outpatient treatment until recovery, it can incur significant costs. Moreover, if the illness hinders your activities and interrupts your income, your savings could be depleted over time.
Similar situations can occur if your vehicle sustains damage due to an accident or other reasons. The substantial repair costs may demand a considerable sum you didn’t anticipate.
In such cases, insurance comes to your aid. While you have to pay a certain amount as an insurance premium, this expenditure is predictable and can be included in your budget. As a result, controlling insurance premiums is easier compared to dealing with sudden expenditures for urgent needs.
11. Use Discount Price Promotions and Shopping Vouchers
One way to save money on your pocket expenses is by using various discount price promotions and shopping vouchers. Certainly, with this approach, you can make purchases at a lower price.
These attractive promotions are not only available for your essential purchases but also in the realm of services, including insurance products. Currently, there are many insurance products that you can tailor to your protection and financial needs. Moreover, you can also utilize discount price promotions and shopping vouchers to save even more money.
Such offers will undoubtedly aid in realizing your plan to save pocket money or expenses, ensuring that your longstanding goal of saving pocket money remains achievable.
You can also find appealing deals when purchasing insurance from Qoala Plus. This way, you can buy specific insurance products at a more affordable price, while still obtaining the expected protective benefits.
Identify the type of protection you need the most, whether it’s life, health, accident, vehicle, or others. If feasible, you can purchase more than one type of insurance for different property objectives.
12. Allocate Funds into Investments
You’ve already allocated expenses for entertainment and savings, but haven’t set aside funds for investment? Try it now by selecting the easiest-to-learn investment instruments with low risks. This can indeed be a trick and solution for saving pocket money while also increasing your income.
Unlike savings, investments offer you the opportunity to earn more money than the initial capital you use. For instance, if you have Rp300 thousand, saving it wouldn’t yield much increase, especially with a low-interest rate. On the other hand, through investment, you can potentially earn far more than the initial amount. However, investments don’t provide instant results. This means that profits or gains won’t come quickly.
So, learn what investments are and the right steps to start so that every rupiah you invest brings returns. Begin with a small amount of capital and don’t get carried away by emotions or follow investment trends with high amounts. Every investment carries risks, and those risks cannot be eliminated.
Gather as much information as possible about investments to avoid the mistakes often made by beginners. You should also learn how to analyze investments, especially if you’re considering stocks as an investment instrument.
However, for most beginners, investing in stocks might not be the right choice, especially if you have limited experience and knowledge about stocks. As an alternative, try to find other investment instruments that you can even manage with the help of an investment manager. So, are you interested in trying this method of saving pocket money while increasing your income? However, make sure you also prepare an emergency fund, too!
13. Courageously Say No to Impulsive Spending Temptations
Finding it difficult to avoid impulsive shopping? While it may seem harmless at first, over time it can have negative impacts on your financial well-being. So, if you’re practicing the art of saving pocket money, say no to all forms of impulsive spending temptations.
It’s better to shop with a predetermined shopping list. Even if you need to buy something not on the list, consider the pros and cons as well as how essential the item is.
If you can do without it, it’s best not to waste money on it. Instead, use your funds to save or work towards your financial goals, such as purchasing necessary items or perhaps planning a vacation to a certain destination.
14. Don’t Succumb to FOMO (Fear of Missing Out) Feelings Just to Follow Trends
Fear of missing out or FOMO is something you don’t need to worry about excessively. With the advancement of technology and time, trends continue to emerge. Moreover, the ease of access through technology and the internet allows you to observe every aspect of trending lifestyles. However, this can indeed be a significant temptation when you’re trying to practice the art of saving pocket money.
For those of you who want to remain consistent in achieving results through the practice of saving and managing your allowance, don’t be enticed to follow every trend. Trends, desires, and the fear of being left behind won’t always appear from time to time. Try setting limits on following trends. For example, stick to trends that offer benefits or advantages and steer clear of trends that would lead you into a financial pitfall.
As an example, the use of flagship smartphones with bubble cameras or foldable screens is currently popular. However, it doesn’t mean you have to switch to such a smartphone when your current one is still functioning well. Especially if you don’t have a need for the new device and use your phone primarily for daily needs like communication and entertainment.
Similarly, if your friends or peers often organize parties, does that mean you must follow suit? Certainly not, right? There are many other ways you can choose to entertain yourself or unwind from daily activities. If your financial situation doesn’t support partying, you’ll likely regret it later if you push yourself to join just to be acknowledged or fit in with a specific group. So, why not give this method of saving pocket money a try?
15. Look for More Affordable Items, But Still Pay Attention to Their Quality
When you’re about to buy an item, what kind of item do you usually look for? Are you searching for something cheap with average quality, or are you willing to spend a bit more for guaranteed quality? This question is essential when you’re exploring ways to save your pocket money.
In reality, both options have their own advantages and disadvantages. Purchasing expensive items means you’ll have to spend more money upfront. On the other hand, buying cheap items without considering quality can burden your finances in the long run. Low-quality items tend to break or wear out quickly, leading you to spend money on repairs or replacements.
So, why not aim for a middle ground? You can still acquire quality items at a more affordable price. While the price difference might not be substantial, you’ll still be saving money. Compare prices and remember to take into account reviews or feedback from other users.
This approach can help you obtain the items you’re looking for without spending a lot while still getting the expected quality. It might sound challenging and tricky, but it’s a smart way to save money, especially for students or individuals on a tight budget.
16. Make Use of Free Facilities
Making use of free facilities doesn’t mean being stingy. It helps maximize the utility of available free amenities and also allows you to save money. For instance, if there’s free catering provided at your workplace, you wouldn’t need to buy food. In fact, it’s more convenient as it saves you time and effort, allowing you to simply enjoy the meal.
This approach can be especially reliable for saving money on meals if the catering is available every workday. Similarly, taking advantage of free Wi-Fi in your living space can help you save a considerable amount on mobile data expenses. You can minimize or even eliminate the need to purchase mobile data or data packages. There are numerous other free facilities you can benefit from as well. However, always ensure you use them wisely, whatever form those facilities may take. Give this method of saving pocket money a try!
17. Cut Down on Unnecessary Snacking
It’s undeniable that nowadays, access to various snacks and street food is readily available. There are many online food delivery services that can tempt you and lead to impulsive snacking. It’s not just about the health aspect of the food you consume, but also the money you spend when buying these snacks.
Even in your nearest convenience store, it’s easy to find various types of snacks that you might want to try. Snacking is not forbidden, but it’s better to cut down, especially if you’re aware that impulsive snacking isn’t good for your health or your wallet, especially when you’re trying to save pocket money.
Try to resist by thinking about reasons why you shouldn’t buy that snack, even if it looks delicious. This way, you can add more strategies to your list of ways to save money as a student or an employee. Just buy a few items that you truly need and then head back home or to your residence to avoid getting tempted to buy even more snacks.
18. Bring Food and Drinks from Home
When going to school, college, or work, it’s advisable to bring food and drinks from home. This will be very beneficial in avoiding the temptation to buy expensive meals or indulge in impulsive snacking. If you live with your parents and there’s always food available to pack, it’s a good idea to bring it along. This way, you can control your spending even if you occasionally want to eat out.
Now, what about those who live away from home? If you have cooking facilities, you can prepare simple yet healthy meals to bring as packed lunches. Instill the mindset of cutting down expenses so that you stay true to your initial goal of saving pocket money.
Alternatively, if you study or work in an area where food prices are relatively high, you can opt for more affordable meals while on the go. This can be done when you’re pressed for time to prepare a meal or lack cooking facilities at your residence. Give this method of saving pocket money a try now!
19. Reducing Unproductive Hangouts Might Be a Way to Save Pocket Money
Gathering with friends is enjoyable, but what about your wallet? If you’re looking to start saving pocket money, it’s a good idea to cut down on unproductive hangouts. Spending money on casual chit-chat and fun activities may not be a wise way to use your allowance. But wait, it doesn’t mean you can’t hang out at all. Socializing and entertainment are important, after all.
It’s perfectly fine to go out and hang out occasionally, maybe once or twice a month. Use money from your budget for leisure activities and make sure to choose food and drinks that fit within your means. There’s no need to show off or follow others, as that can lead to financial setbacks. Nowadays, there are plenty of hangout spots that offer affordable menus and even free Wi-Fi. Discuss with your friends so you can opt for places like that instead of going somewhere where even a bottle of water comes with a hefty price tag.
20. Use Public Transportation for Daily
Public transportation is a facility you can utilize for various daily commutes. If longer distances would require you to spend more money on private vehicles, why not opt for public transportation instead? Nowadays, there are plenty of affordable public transportation options available.
Besides saving on transportation costs, using public transportation can also help alleviate traffic congestion. It can prevent potential stress and emotions from being stuck in traffic. Moreover, you can enjoy the journey to your destination by taking in the scenery or catching a brief nap. This method of saving pocket money is certainly easy to implement, isn’t it?
21. Manage Credit Card Usage and Installment Facilities Wisely
A credit card is one of the banking facilities that customers can use for various needs. However, its use shouldn’t lead to overspending and accumulating hefty bills. There’s nothing wrong with deciding to use a credit card, especially when it can help you save money through discounts or special offers at specific merchants. Credit cards can also provide cash when needed.
To ensure that your credit card brings benefits and advantages as it should, manage its usage wisely. The same principle applies to other types of installment facilities as well. No matter how sweet the rewards are, remember that there are sacrifices to be made, particularly when it’s time to repay the installments.
If you want to learn how to save money on daily, weekly, or monthly expenses, use your credit card only when necessary. Pay attention to your transaction limit and keep your card secure so you don’t use it recklessly, especially when you’re in a shopping center. Apart from the bills, there are other fees associated with credit card usage. So, carefully consider these factors when you’re working on ways to save your pocket money.
22. Don’t Underestimate Small Change
Although often perceived as having little value, don’t underestimate your small change. A substantial amount of coins can indeed become valuable and can be used for various purposes. The coins you commonly receive as change when making purchases or for parking fees can be collected and serve as a smart trick for saving pocket money and adding to your funds.
Haven’t we often heard the saying, “Little by little, a little becomes a lot?” The same applies to coins. The more you have, the greater their overall value. Just imagine if you accumulate coins that amount to millions of rupiah. This could provide funds for specific goals like purchasing desired clothing or repairing a motorcycle.
No matter the current amount of coins in your possession or pockets, never underestimate them. Prepare a designated container like a jar or any other suitable receptacle to collect these coins. Once the quantity accumulates, you can exchange it at convenience stores, gas stations, or nearby shops that require coins. This habit allows you to have extra funds without going through too much trouble to prepare it. Though it might take time and patience, it’s still worth a try.
23. Don’t Easily Fall for Online Loans Even When Funds Are Running Low
Your funds are running low and your payday or transfer from your parents is still far away? With very limited funds, it’s common to wonder if they will be enough for daily needs. So, how can you save pocket money in this situation?
Actually, if you plan and prepare for every need, purchase, and expense, the remaining funds will be sufficient. There’s no need to worry about going into the negative or reducing your savings. The truth is, that various offers and temptations like massive discounts, buy 1 get 2, cashback, and other tempting promotions can be enticing. As a result, many people end up resorting to online loans to obtain these items. However, these items might not necessarily be needed or important at all.
In other words, they can continue their lives even without these items. But once tempted, they’ll go to great lengths to acquire them, thinking that they might need them later and they might not be on discount or promotion anymore.
Seemingly alluring at the beginning but burdensome in the end, that’s online loans. Apart from the principal loan amount, the high interest will also become an obligation you have to pay. You know your monthly income, so why take the risk with online loans? It’s better to avoid online loans no matter how attractive their offers are or how low their interest rates seem. Even though your funds are running low, resist the temptation to resort to online loans. So, how can you save pocket money in this situation?
You can also reduce transportation costs by cutting unnecessary or non-essential trips. The goal is to ensure that the remaining funds can last until your next income.
Do you know how to save pocket money? Have you applied these strategies? It’s better to start implementing them as soon as possible, as the decision to manage your finances wisely shouldn’t wait for the right mood or time. Your financial future is in your hands, so don’t procrastinate.
