Imagine this: You have just received your bank statement, and are scanning your purchases from the past month with regret. You think to yourself: Did I actually go out to eat that much? Did I really need to buy that sweater I couldn’t live without in all three colors? Horrified, you vow to limit your spending this month. Minutes later, you get a call from a friend wanting to go out for dinner and drinks. Okay fine, I’ll just start saving later, you promise yourself, and head out for a fun but expensive night out.
Sound familiar? If so, you are certainly not alone, and you are in the right place to change your habits. Everyone wants to save money, but few know how to do so successfully. Want to know the secret to saving money? Read on to learn the ten most effective strategies to save more money than you ever have before!
Analyze Your Spending and Set Goals
While this step may seem simple, it is the single most important way to start saving money. People often overlook this when beginning their quest to save money, but without learning your spending habits and setting some goals for improvement, it is very difficult to succeed.
THE 10X RULE
The only difference between success & failure
Track Expenses
Tracking expenses is easier now than ever before, with the use of mobile banking and budgeting apps. Whichever way you prefer to track your spending habits, it is an important starting point for saving money.
Set Realistic Goals
So how do you set goals? A good rule of thumb is that your goals should be specific, measurable, realistic, and have a timetable. Each person’s goals will be slightly different, so it is important to think about your unique situation. As an example, if you are looking for how to save money fast, you should start by defining exactly how much money you want to save and how fast you would like to save it. If you would like to save $1000 fast, for instance, make sure to add a timeframe with that goal – such as in the next month. Some examples of good goals would be to save $300 dollars each month, or to make $1000 a month.
A great way to add motivation to your goals is to attach them to a specific reward or reason for saving. For example, instead of just aiming to save $1000, remind yourself that it is for your retirement savings or your child’s college fund. If you are planning to save money for more general reasons, perhaps resolve to reward yourself with one of your favorite activities if you meet your goal.
What is the 50/20/30 budget rule?
Forbes describes the 50/20/30 budget rule as a method of budgeting your money into three spending categories. Wondering how much of your income should go to bills? Unsure of how much to have in savings? Using this model, 50% of your monthly income goes toward essential needs of living, such as rent, utilities, food, and transportation.
20% of your income goes toward savings – whether that be savings funds or investments. Finally, the remaining 30% of your income is allocated toward spending as wanted. We recommend talking with a licensed financial advisor to get started or if you’re digital savvy and want to mirror training professional you can check out Social Trading Platforms.
Example Budget
For example, if you have a monthly income of $1500, a great goal would be to save $300 per month using the 50/20/30 rule, leaving $750 for essential costs and $450 for flexible spending.
Pay Yourself First
As with all things, practice will improve your meditation technique which will in turn improve your well-being. It’s of benefit to you to begin with as little as 5 minutes a day. Many seasoned practitioners will meditation between 15 – 20 minutes twice a day. Consistency is also important. We wish you good health, a strong mind and a true spirit on your journey!
Chances are, if you’re familiar with the money-saving game, you’ve heard this saying before. And for good reason – it is an excellent piece of advice for saving money! Paying yourself first simple means that when following your budget, you first set aside the amount of money you would like to put in savings. This ensures that money intended for savings is not allocated elsewhere during the month.
Tip: You can set up automatic monthly payments to a savings account to make paying yourself first easier than ever. Before you know it, your savings will multiply before your eyes!
Cut Out One Problematic Expense
Almost everyone has that one spending habit that consistently racks up money on their credit card bill. Whether it is a daily cup of coffee, an online shopping addiction, or parking fees, everyday expenses can add up quickly, soon becoming not as innocent as they may seem in the moment. Does anything in particular come to mind? Try cutting it out for a month. Often, just cutting out one problematic expense can save immense amounts of money over time.
Buy Used
A common assumption is that used items are not worth the savings due to not being as functional or aesthetically pleasing. Sometimes, of course, this is the case. However, you might be surprised by the quality of many used products. Some truly are indistinguishable from new products! To find used appliances, furniture, kitchen ware, clothing, and much more, simply visit a local thrift store or websites like Ebay or Poshmark.
If you’re in the space of personal growth and looking for free courses the sky’s the limit there too! Free is always approved when trying to save money!
Save on Food
Food is a necessary expense, but it does not have to break your budget! There are so many effective ways to save money on food. Contrary to popular belief, saving on food does not mean you must have a bland diet of processed foods.
Save money without living off of Top Ramen
- Plan your meals – Plan your meals in advance, writing down ingredients that you will need. On the weekend, prepare meals for the week ahead. This saves money by having prepared food rather than splurging on meals out.
- Grocery shop mindfully – When grocery shopping, come prepared with a list to prevent going overboard on unnecessary items. Make sure to never shop on an empty stomach!
- Start couponing – Coupons can save significant amounts of money. Collect coupons and online deals for your favorite brands and get your coupon on!
- Pack your lunch – Instead of going out for lunch every day, take a few extra minutes in the morning to pack a lunch.
Go Green
Want to save money while saving the planet? According to The Penny Hoarder (LINK), there are several ways to do so! For example, conserve energy by turning lights off, or even installing an occupancy sensor that switches lights off automatically in the absence of motion. Save water-related energy by using cold water for laundry and line-drying your clothes. Reduce carbon emissions by carpooling or using public transportation.
Try Low Cost or Free Activities
It’s easy to be tempted by pricey forms of entertainment, but there are many enjoyable activities that involve little to no cost! Examples include going for a walk, run, or bike ride, cooking a meal at home, or inviting friends over for a game or movie night.
Sell Stuff
This is a straightforward, yet very effective way to boost income and thereby save some extra money. Whether you have a yard sale, sell items online, or sell to a local shop that buys used items, this is a surefire money-making method. After all, one man’s trash is another man’s treasure.
Try a No Spend Challenge
No Spend Challenges are a great way to save money by cutting out one type of expense for a certain amount of time. For example, you might decide to avoid eating out for a week, or avoid online purchases for a month.
What is the 30 Day Rule?
No Spend Challenges are a great way to save money by cutting out one type of expense for a certain amount of time. For example, you might decide to avoid eating out for a week, or avoid online purchases for a month.
Save Money
With these 10 ways to save money, you will be saving more money faster than ever before! Use these great tips to save with ease and efficiency. Everyone needs to find what works best for them, so if a particular strategy isn’t helpful, don’t give up! Try another one, as there is sure to be something for everyone on this list. Happy saving!
