How To Save Money

Saving money doesn’t mean you can’t enjoy life. You are making your money work for you by being smart on how the way you spend it. Even if you feel that you don’t make enough to save, the smallest amount will eventually add up.

7 tips to save money

Compare Your Income To Your Expenses

Basically you are making a budget. To learn more about how to make one go to my blog post on 5 Tips To Budget Money.

When you compare your actual expenses to your income this gives you a realistic view of what you’re working with. And to your surprise you will find out how much you are spending in a month on things you really don’t need like takeout or your morning coffee run.

Having a realistic budget will help you weed out your must haves from what’s not a must have.

Cut down On Unneeded Expenses

In life we have wants and needs. It’s easy to cut out our wants since they aren’t necessities. But is there a way to cut down on even our needs? YES!

Examine all of your bills. You can reduce the cost of some by creating better habits. 

Let’s look at some together!

Electric Bill When I was growing up my parents would leave the lights and tv on whenever we would leave the house. (It was to make it seem like someone was home to prevent a thief from breaking in.) That was money that could have been saved. Honestly ask yourself are you someone who likes to leave the lights on in your home, even when at home? By turning off your lights or any electronics that are not being used will help to save you money.

Car Insurance A few years ago I got an insurance broker/agent that would shop around for car and home insurance before my current policy renews. She told me that it’s a normal process for insurance companies to go up in price every time you renew with them. Most of the time by looking around and switching you will find a better price and sometimes even better policies. I wish I would have found out about this sooner. I could of saved even more money, even sooner

Cable Bill Cable is becoming more and more expensive every year. And personally I feel like the quality of what you get goes down. Due to the price, me and my husband just use an antennae. When we first used it, we were surprised at how may channels we got. And if we want to watch anything extra we have streaming subscriptions that are a fraction of the cost. Try weighing your options and price when it comes to cable vs streaming and see how much you can save.

Pay Off Debt

When I was younger I had a bunch of department store credit cards with high balances. I went to a debt consolidation agency and I had a friend who went to college to be an accountant, in which they both gave me a lot of great advice.

This is what I learned, first make a list of each debt amount in order of least to greatest. While paying the minimum payment on the others, tackle your smallest debt first. Pay the highest amount that you can afford. For example if your minimum payment is $50 add $25 to it to make it $75. Since it’s the smallest debt amount you will be able to pay off that one the quickest. 

Once that is paid off then add that amount, $75, on top of the minimum payment of your next lowest debt amount and so forth.

Before you know it you will have all your debt paid off. And once it is, whatever the amount that you were paying, SAVE IT!

Set Spending Limits

Although there is nothing wrong with treating yourself from time to time, especially when you work hard. We don’t have to have everything we see!

Keep in mind that just because you want it doesn’t mean you need it. And just because it’s a want doesn’t mean you don’t need it. Confusing huh? The point is just be balanced in your wants and needs. 

There are some expenses we can’t completely control like medical bills, car expenses, etc. But on what you can, have a set amount of what you can spend.

This will help you to get something that you want or like without feeling guilty while saving money.

Make Smart Choices

Always go for generic

It’s not always a guarantee that when buying a brand name you get better quality. In my experience 9 times out of 10 the generic works just as well. And it’s easier on the pocket. Don’t get tricked into paying more just for a name.

Use money saving/Reward apps

Reward apps for groceries or household items don’t get talked about enough. I have a friend that is always mentioning the benefits of them to me and I’ve used a few. You are able to get not only cash back but some you rack up points which you can cash in for gift cards. Try them out you won’t be sorry if you do.

Use coupons

Have you ever watched those coupon shows where the shopper would get things nearly for free. I wish I was that good. Personally, I use coupons on products that I know I regularly use. Or you might find a new product that you like, that cost you less, because of a coupon. Even if you save 40 cents that’s still money in your pocket that will add up.

Plan your meals

Have you ever gone to the grocery store when hungry and bought everything you didn’t need. We are ALL guilty of that. What can help that planning your meals. I personally love to meal plan.

Meal planning allows you to cater your grocery list to what you really need instead of going to the store and buying what looks good. Which causes you to waste much needed money.

It doesn’t take much time. For tips read “3 Basic Steps To Plan Your Meals”. You’ll be happy to see the savings at the end of your grocery trip.

Take your lunch to work Or make your own coffee at home

We all have those days where we don’t have enough time for anything, even ourselves. So taking that trip to get our coffee or picking up lunch is understandable. But don’t make it a habit, make it an exception. When creating your budget as mentioned earlier you’ll be surprised just how much you actually spend a month, maybe even a week on things you could have just done at home.

I know it’s easier said than done but try waking up 5 mins earlier to make your coffee at home. Or pack your lunch the night before.

When you do the savings will add up!

Use Credit Cards Wisely

We live in a world of charge now pay later. And later comes sooner than you think.

If you do end up having to use a credit card, since life can be very unpredictable, use a cash back rewards credit card. Why not get money back for spending money? It may be small but it eventually adds up.

You can use the extra money to pay towards your credit card bill or use it to buy something you like. From personal experience I like the option of using it to buy something I like.

Start Saving

Here comes everyones favorite part. The part where you actually start saving money. You have a couple of options on how to do it.

Manually 

This is where you set an amount and you physically take the money and put it in a bank account or transfer it from one account to another.

Automatically

Most banks have a feature that comes with your account that you can set up automatic transfers. Ours does. You can set it up to when you get paid your bank will automatically transfer $50 into your savings account. It’s a nice way to not have to worry about it and you know it gets done.

Saving something, even a penny, is better than saving nothing!

Treat Yourself

Personally I feel this is one of the most important parts when it comes to saving. If all you do is put money away and never get to benefit from it you will not enjoy life. Be sure to treat yourself from time to time.

It’s like a diet. If you cut everything out, the first time you see a chocolate cake you will eat the whole thing. I know I will!

There is nothing wrong with treating yourself. We all work hard so we all deserve a reward. The money that we make is not only used for bills. So if you have the chance to treat yourself, do it.

Now I’m not talking about an all out binge. Just something for you! Maybe a pair of shoes you’ve been eyeing or the item in your online cart that you’ve been ”saving for later”.

Think of it as your motivation to keep you going on your journey on saving money.

Saving money doesn’t have to feel like a pain. Soon you will achieve the goals that you have set for yourself and continue to make more.