There are hundreds of ways to save money. In this guide, you’ll find my best tips and tricks to get that piggy bank bursting from the seams!
Spend what is left, after saving.
How to Save Money
Let’s start out with the basics. A few of the top ways to start saving money now:
- Pay yourself first – This is the easiest way to start saving money. It’s the principle whereby you put money away in your 401K, savings account or other special place you can’t touch before you pay your regular bills. This means if you make $1,000 a month, you put say $100 in your savings account and then you have $900 left to spend on anything else you need to. Don’t fall into the trap of saying you’ll spend the $900 and then put the rest in savings. It almost never finds its way there.
- Start small – It can be daunting to open up your favorite financial website and find the “experts” expecting you to save 10%, 15%, or even up to 50% of your income every month. Maybe you can only afford to save 1% this month. Maybe in 6 months it’s 3% and maybe in 2 years it’s 8%. Start small and build up over time.
- Delay your purchase – use the 24-hour rule, the 72-hour rule or the weekly rule. They’re all the same. The principle is simple. Whatever number you pick, if you find something you want to buy, you must wait that time period before pulling the trigger. Delaying the purchase decision can drastically cut back on impulse buying and solidifies whether you really need it, or you just want it.
- Shop Around – All those offers that say “act now and get X% off, limited time offer only?” They’re almost never a limited time offer. Try visiting that website in a week and see if that offer is mysteriously still there. Nine times of out of ten, it still will be. This should give you the confidence to shop around before pulling the trigger. Often times ordering it online and waiting a few days can mean the difference between getting an “OK” deal and a “smoking hot” deal!
- Plan, Plan, Plan! – There’s nothing worse than finding out you need something that could have been purchased weeks or even days earlier that could save you a fortune. There’s no excuse for last minute birthday or Christmas gifts. If you know something is coming, don’t wait. Run through the event or need in your mind to determine what things you need to get before it happens. Your bank account will thank you.
You should see the stock pile of cheese I have hidden away. I got it there one piece at a time.
Ready for more? Check out these articles on how to jump start your saving quickly.
Jump start your saving:
Cut your expenses
Once you’ve nailed a good rhythm of paying yourself first and thinking ahead, it’s time to start cutting your expenses. Here’s few things you should start with:
- Call your cable/internet provider immediately and negotiate a better plan
- Shop your auto / home insurance to potentially save hundreds
- Look into getting a new cell phone provider – costs have come down a lot over the years
- Sign-up for reoccurring subscriptions on your favorite products. I save 10% every month on my beef jerky subscription directly from the supplier and it’s the best price I can find anywhere!
- Audit your home for energy savings. You may not be able to buy new energy efficient appliances, but did you know that even when appliances are plugged in but not turned on that you are losing electricity? Not willing to unplug unused appliances? Maybe it’s time to start wearing that onesie to cut down on the heat bill. 😉
Whether you’ve never saved a penny in your life or you’re well on your way to climbing the financial freedom ladder, the best way to save is slow and steady. A penny turns into a $1 which turns into $100 and then $1,000 and pretty soon you’ll be a millionaire.
You’re already an expert in saving money and cutting your expenses, it’s time to climb the Financial Freedom Ladder.
Are you up for the challenge?