Tips for How to Save Money
In this blog post, I will list 18 tips for how to save money fast!
There are many good reasons to start saving money. Maybe you suddenly got slammed with an unexpected bill, or maybe your friends just invited you on a trip of a lifetime.
Or perhaps, you want to buy a house and you have to save for a down payment.
Or you’re just simply trying to grow your emergency fund so that you are better prepared for any unexpected expenses in the future.
Furthermore, maybe you’re saving money for index funds or real estate investments.
Whatever your reasons may be, there are a lot of ways to save money.
Number 1-track your spending and create a budget
This shouldn’t come as a surprise, the number 1 tips for how to save money is to track spending and create a budget.
Tracking your spending is the very best way to identify areas where you can save money.
All you need to do is track your spending for one month, and this will give you a good idea of where your money is going.
You can track your spending via a spreadsheet, Mint.com, or via you need a budget app (paid subscription).
Once you’ve identified where you’re spending your money, you’ll see areas where you can reduce spending, set a reasonable budget and then stick to it.
This is a simple thing to do, and it’s a very effective way of controlling your spending.
Number 2-Pay off your debt
If you’re carrying a credit card debt, you’re wasting money.
As difficult as it may be, your top priority should be to pay off your debt and free yourself from those high-interest rates.
Hopefully, some of the other tips on this list will help you retain more of your cash. Then in return, you can use that cash toward conquering your debts.
Number 3-Automate Savings Transfers Each Payday
If you can’t seem to create a habit of saving, scheduling automatic transfers to your savings account can be a huge help.
When you have a certain amount of your paycheck automatically transferred to your savings account each payday, there’s less temptation to spend it and you can easily watch your account balance grow over time.
Review your budget and choose an amount that you can commit to regularly, then put your savings on autopilot.
Number 4-Negotiate your bills
While some of your bills, such as rent or mortgage payment may be non-negotiable, you may have some wiggle room with others.
For example, you may be able to find a better deal on your car insurance or your cell phone service.
Doing some research to find better rates can take a little bit of time but it can be time well spent if it helps you save money.
Number 5-Set up automatic payments for bills
An easy way to save money is to simply pay your bills when they’re due. Companies typically charge a late fee for any balances that are overdue.
And while it may be a few bucks here and there, these fees quickly add up, especially if you pay multiple bills late.
So, set up automatic payments for bills to ensure that they’re paid on time and to avoid any lates fees.
It’s also important to keep an eye on your bank account balance to avoid overdrafts and accumulating additional fees.
Number 6-Go cash only
Put your credit cards away, and then take out a limited amount of money from your checking account enough to last you for a few weeks.
Basically, you withdraw a limited amount and then watch it shrink.
Since we’re more motivated by loss than by gain, each dollar you physically spend will force you to spend consciously.
Number 7-Consider relocation
Perhaps you live in the downtown area and your mortgage or rent costs you 2 to 3 times more than it would if you moved just 15 to 20 minutes outside of the area.
Relocating to an area with a lower cost of living or downsizing your home could potentially put hundreds to thousands of dollars in your pocket each month.
Obviously there can be some roadblocks that may prevent you from moving, but if relocating is an option, it may be well worth considering.
Number 8-Stop paying for convenience
People are used to paying for things they can easily make at home much cheaper. For example, they pay for $6 for a cup of coffee at a local cafe rather than brew an entire pot of coffee at home for a few pennies.
Take a little extra time at home to make your own food, brew your own coffee, clean and repair things around the house can grow your bank account rather quickly.
Number 9-Make a grocery list
Making grocery list before you head out will save you a ton of money. This will ensure that you end up buying only what you need, and that you don’t fall victim to any impulse purchases.
Write down everything you need for the week.
The less time you go spend shopping, the less likely you’ll be picking up something you really don’t need.
Plan to shop for an hour or less, and try to race the clock when you shop.
This way you won’t spend time wandering around picking up things that look appealing.
Also plan to go shopping shortly after you’ve eaten. Everything will look less appealing if you’re shopping on a full stomach.
Number 10-Downgrade you cable, phone and internet
For most families, these three services equal big bucks every month.
Monitor your use over a month or two and decide what you actually need and what you could cut.
Do you really watch any premium channels?
Is your landline phone doing anything other than collecting dust?
How fast do you need the internet to be if you’re only checking Facebook and email?
It truly pays to shop around and find a cheaper service elsewhere.
And finally, if you’re able to, do away with cable altogether, join the millions who decided to cut the cord!
Number 11-Cancel paid subscriptions, memberships and services
Are you subscribed to a magazine that you never read?
Are you paying for a product delivery service that you hardly ever use?
If you have a gym membership, when was the last time you actually made it to a work out session?
Paid services, subscriptions and memberships can really add up.
Make a list of all the ones you have, and ask yourself if you really need them.
If the answer is NO, it’s probably time to cancel.
Number 12-Quit your bad habits
For most people, it’s not easy to quit smoking, drinking, using drugs, or overeating. But these habits are costing more than just your wallet.
Quitting destructive habits will improve your health, lower your insurance premiums and save you a surprising amount of money.
Seriously, a pack of cigarettes cost $8.00. Come on now!
Number 13-Buy something new when replacing something old
If you tend to buy things only because they’re on sale, or just because perhaps it’s time to stop because you’re wasting money.
Establish a rule that you can only buy to replace something you already have, you’re creating an “active barrier.”
Before buying anything, think about how many of those you need and how many you already have.
Then think again, if you really need a new one.
The psychology of having to look at your closet, deciding what you need and what to give away to the nearest Goodwill or garbage can is enough to deter us from buying something new.
Number 14-Practice the 30 days rule
The 30 rule is a simple method to control impulse buying.
Here’s how it works. Whenever you feel the urge to splurge, whether for new shoes, a new phone or a new car, force yourself to stop.
If you’re already holding the item, put it back. Leave the store.
When you get home, take a piece of paper and write down the item, the store where you found it and the price. Also write down the date.
Now post this note somewhere obvious: a calendar, the fridge, or a bulletin board.
For the next thirty days, think whether you really want and need the item.
If after the 30 days, the urge is still there, then consider purchasing it.
That’s all there is to it, but it’s surprisingly effective!
The 30 day rule works because you’re not denying yourself but simply delaying instant gratification.
Furthermore, there’s an added advantage. It gives you time to research the item.
Number 15-Take the time to comparison shop
This tip goes hand in hand with the previous tip.
The retail industry thrives on impulse buy, luring you with so-called sales that urge you to make an immediate purchase.
Although there are some door buster deals that may actually be worth it.
More often than not, you’re better taking your time and compare prices with other retailers.
Among the many things you should consider are not only the base price of an item but any shipping costs, coupon codes, and other offers.
As an added bonus, during the course of your comparison shopping, you may even realize that you don’t need the item you’re looking to buy!
Number 16-Watch out for fear of missing out
Your favorite social media site may be super addictive and offer plenty of useful advice.
But they can also lead to the fear of missing out (FOMO).
You’ve probably have seen dozens of articles, whether intentional or not, that make you feel guilty about what you’re not doing.
Things that you should do in your 20’s or 30’s. At what age you should buy a house or a car etc.
What luxury items you need to own and so on and so forth.
Ask yourself, are they really things YOU want to do or buy? Or are you checking off items on some else’s “bucket list”?
Create your own list of goals, focus on them and let go of the rest.
Number 17-Turn trash into cash
Another way to bring in more money is by selling things you no longer need.
Look for designer items you don’t wear.
Electronics you aren’t using, old books or anything else of value.
Figure out what your stuff is worth-so that you can get a fair price.
Stay safe by practicing best practices, like meeting buyers in a public place.
Lastly, list these items on Facebook Marketplace, Ebay or Craigslist.
There are also up and coming apps like Decluttr, Letgo, or Poshmark.
Number 18-Earn more money using a skill you have
Most people only think about cutting costs when they think about tips for how to save money.
This often leads to learning and practicing extreme frugality.
We forget about the possibilities of earning more money. You an earn more money by:
- Negotiating your salary at work,
- Starting a second job
- Freelancing in something you’re really good at
- Other side hustles
With these extra income you’d be surprised how fast your savings will grow.
Unfortunately, we’ve come to the end of the list on 18 tips for how to save money.
Tips for How to Save Money Summary
Saving money is not as hard as you think.
You can save a significant amount of cash just by making small changes.
And the best part is, not only will you learn to value money, but in the process of saving, you’ll also learn which strategies work best for you.
And when you do, you can use them again and again when needed.
Hopefully this will be habit forming and you’ll have enough money for whatever expenses come your way.
At the end of the day, having a little extra in your savings account can give you the confidence and security to enjoy life.
What do you think about these tips for how to save money? What are some other ways to save money? Let us know in the comments below!