If you want to be able to afford all your needs consistently as well as a good number of the luxuries in life then having a habit of saving is a good one to cultivate. Financial freedom, that is, being able to buy or do what you want, when you want, is the goal.
We can advise you to make it a point to shop for your groceries from promotional catalogues and online offers like the current Acme circular. The ‘big book of savings’ as they’ve called it, has many combos with discounts that will leave you with a bit of change in your pocket. Take the 10 for $10 Signature Farms peanuts for example, or the buy-one-get-one-free Valued Naturals chocolate or yoghurt covered pretzels. Some products even have additional bonus ticket items attached to them. Shopping like this will ensure that you not only save money, but if you get more than one of what you need, there will be no need to spend again in a week or a month later. It’s called using money wisely.
However, in order for you to be able to save in much larger sums, you have to be earning an amount that allows such a habit. Realistically, if you don’t have an income, then being able to save is sure to be an extreme sport.
On how to develop good saving habits and making your money work for you, gleaning lessons and inspiration from some of the world’s well-paid celebrities is not only great, but wise. Below are 5 celebrities who are frugal and know a thing or more about saving.
1. Always Have A Monthly Budget Allowance – Ed Sheeran
These celebrities, Ed Sheeran, Keera Knightley and Zoey Deschanel have one thing in common; they live way below their means by having a monthly spending budget. Ed Sheeran is known to commit to only spending about $1k a month and Actress Keera Knightley has previously been reported to set a $50k per year allowance so as to keep track of how much she spends regularly and where her money goes.
Zoey Deschanel takes it even further by not only having a monthly allowance but also allocating specific amounts towards utilities, clothing, cell phone and internet charges as well as charity donations. In short, she comes up with a working budget every month, and one that she sticks to no matter the extra income she may get. The lesson here is that proper allocation of needs and wants ensures that you don’t fall into impulse spending and lose out on saving what will be beneficial in the long run.
2. Coupons And Bargain-Buys Never Go Out Of Fashion – Kirsten Bell
We all deserve those luxuriously looking, nicely scented candles and maybe a season or two seasons’ old bottega bag. It is not necessarily our desires that are the problem but how we go about fulfilling them knowing fully well that our financial positions do not permit.
Buy pre-loved luxury items sold independently at 20% or more off the original price and frequently look out for Market Basket flyers that help you to plan ahead by showcasing the best prices for household items and other luxurious necessities.
3. Don’t Feel Pressured To Amass Depreciating Assets – Cameron Diaz
Depreciating assets are material possessions that decrease in value over time and still require a lot of maintenance. Eventually, there is pressure to buy a more expensive replacement when the next best latest offering is released. Most of us fall prey to this one because of our love for gadgets. We want the latest iPhone, the new laptop with features we may not necessarily use, or the brand new earbuds to replace our perfectly functional headphones.
From Diaz, who has tamed this senselessness as she’s been seen to prefer a Toyota Prius, we learn that cars are often a financial trap so a good way to save money is to invest in what is practical and cost-effective rather than what is flashy and currently in style. Also, you can save up on costs by opting to take the bus or train if public transportation is reliable in your city.
4. Multiple Sources Of Income And Separate Bank Accounts – Jay Leno
While still at NBC, Jay Leno made the decision to never spend the salary he earned from being a television host, instead he focused on utilizing what he earned from his stand-up comedy gigs and his other celebrity contracts and appearances. First lesson here is to work towards having multiple streams of income. The second lesson is to ensure that all the money you earn does not go into just one bank account. You can choose to separate your earnings by allocating them based on living expenses, emergency funds, and investments.
5. Invest, Invest, Invest – Warren Buffet
Speaking of investments, who else but Warren Buffett – one of the world’s most successful investors, is more fitting to take advice from? According to Warren Buffett’s philosophy, your money should work for you – saving is good, but, what is even better is saving in such a way that your money can make you more money even while you sleep.
According to Buffet, “today, people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value”.
So here are two things you must absolutely do if you are to follow Buffett’s example and philosophy; first, never just leave cash lying around if it’s not needed, and secondly, focus almost exclusively on long-term investments.
Needless to say, cultivating a habit of saving can be fundamental to experiencing any semblance of real security and access to our desires when we want it. It is good practice to invest time and resources in figuring out where to make necessary spending cuts and how best to improve one’s financial wellbeing.