How to Save Money
Everyone knows the feeling of receiving
their first paycheck…or second…or third. But after one too many trips to the
mall or packages delivered to your door, it’s time to start saving.
Although saving money may not be as fun
as a shopping spree, it is more important. You never know when unpredictable
events and hardships can plague your pocketbook and damage your financial
stability.
While the thought of saving money for
an economic emergency can seem overwhelming, setting aside money for your
future does not need to be a scary task. Whether you are looking to stash away
some extra cash or save for retirement, there are many ways to remain debt-free
and financially stable.
This article will include ways for
everyone to save, from basics for beginners to advanced tips for experts, and
also explain creative and non-traditional ways to stash your cash.
Establish
Your Budget
The first step to saving money is
creating a budget and sticking to it. When deciding how to save money, choose a
budget strategy that will work best for you. If you like to be organized,
consider creating a color-coated spreadsheet carefully outlining your expenses.
Having a budget will give structure to
your spending and discourage you from taking unnecessary shopping trips. Don’t
forget the importance of choosing a budget that works best for you and sticking
to it!
Having an emergency fund can be a huge
relief in a time of distress and unexpected expenses. When building an
emergency fund, it’s okay to start small, but over time try to accumulate
enough money to cover 3 –6 months of living expenses. To
grow your fund, set monthly goals of how much money you want to add. Put this
money in a separate high-yield savings account. Your money will earn interest
and is easily accessible in a time of need. Just remember to only use this fund
for real emergencies – not shopping emergencies
Download
a Budget Spreadsheet or Savings App
In an age of technology, there’s an app
for everything – even saving money! With technology at your fingertips, you can
access your personal finances with the click of a button
These apps help reduce spending,
encourage saving and help with budgeting. If you’re interested in an easier use
of technology, download a budget spreadsheet to manage your expenses.
Set
Up Automatic Savings
If seeing the dollar sign tempts you to
shop, consider setting up automatic savings. Automatic savings are one of the
easiest ways to save money because your money goes right into your savings
account before you can even think about what you want to spend it on. If you’re
a shopaholic who needs some control, talk to your employer or bank about
setting aside a portion of your paycheck to be deposited into a savings
account.
Use
the 30-Day Rule
If you are looking for another way to
curb any excessive shopping habits, implement the 30-day rule into your daily
life. The 30-day rule encourages shoppers to take a step back from their
prospective purchases and wait 30 days to see if the item they want is reallyworth
it. After a month has passed, most people will realize that whatever they were
obsessed about weeks ago was just another impulsive want.
Take
Advantage of Employee Benefits
Many companies offer retirement and
entertainment benefits to their employees, so take advantage of your
opportunities. Maximize the money you are saving for retirement and attend a
sporting or community event while you’re at it. Talk to your company’s HR team
to see if you are eligible for any deals or freebies!
Save
for Specific Holidays or Purchases
Have an anniversary coming up or can
tell your washing machine might fail you? Start saving now! Set aside a portion
of your paycheck leading up to a big purchase so that your wallet won’t be
strained when the time comes to pay for a large expense. If you’re looking for
an appliance or gift that has a sale period, do research to see when deals are
being held. Or better yet, get creative and make a DIY gift for any presents
you have to give!
Do you have a box filled with unread
magazines or subscriptions to more than one streaming site? If so, it may be
time for you to cancel your unnecessary subscriptions and save a little money.
What’s the point of renewing your subscriptions if you’re not going to use
them?
Ways
to Save Money: Advanced Tips
Start
Investing
Whether you’re a stock market rookie or
pro, investing can help you save money
You can choose to invest as much or as
little money as you want, so stay in your comfort zone to reduce the risk of
losing money. Next, determine if you want to invest in stocks or bonds, decide
how you want to own those assets, and where you want them to be held. Don’t be
afraid to take a chance, because you might become more profitable off your
investments!
Seek
High Interest Savings Accounts
If you want to make more money from
your savings, consider putting your funds in a high interest savings account.
These accounts offer rates around 2% which is 200 times more than a standard
savings account. Make sure the account is insured and look out for requirements
and fees before you select your account.
Choose
Credit Cards Wisely
It may be best for you to ditch your
credit card for cash and envelopes, but if you insist on swiping your card,
choose one that offers cash back rewards. Cash back rewards compensate shoppers
for charges they put on their credit cards by offering them a percentage of
what they spent in the form of cashback or points. If you tend to make a lot of
purchases on your credit card, get rewarded for what you buy so you can save
more.
Find
Ways to Increase Income
Right now, your income is probably what
you make at your full-time job. But if you had the opportunity to make extra
cash on the side without devoting as much time to your work, I’m sure that you
would be interested
ncome. You can earn passive income by
flipping sites, landlording, and peer-to-peer lending. These are only some ways
that workers can earn extra money. Become an entrepreneur and try making some
passive income.
Shop
by Unit Price
Utilizing the unit price when shopping
can increase a shopper’s bang for their buck by giving them more merchandise at
a lower cost. Looking at the unit price instead of the shelf price can be
beneficial for customers looking to buy in bulk. This can be used to maximize
savings when buying food and other household items like laundry detergent,
toilet paper and diapers.
Consider
Debt Consolidation
Debt consolidation can combine your
high interest debt (such as credit card bills) into one, lower interest
payment. If your debt is unorganized and causing you stress, consider
consolidating your debt which can make it more simplified, structured, and
easier to pay back. If you are thinking about debt consolidation
Refinance
Your Mortgage
If you have the option to refinance
your mortgage for a lower interest rate, it can be a helpful tool in saving
money. There are many benefits of refinancing including lowering your monthly
payment, consolidating debt and utilizing home equity to achieve other
financial goals. If you are interested in refinancing your mortgage
Check
Your Credit Report for Free
Once a year, you can use your free
credit report to check your credit score and look for opportunities to raise
it. Credit scores are used by landlords, lenders and potential employers to
check your credit history to determine what you can get sold at what price. Use
this opportunity to check for inaccuracies and chances to raise your score
More
Creative Ways to Save Money
Cook
and Make Your Own Lunch
Opting to stay home and eat instead of
visiting a restaurant or picking up fast food can be beneficial for your wallet
and your body. Home cooked meals are healthier and cheaper than eating out, and
they do not all require a lot of hard work and preparation. Get a cookbook for
beginners or save some money and Google easy recipes to make. You don’t have to
be Martha Stewart to make good, healthy food!
Always
Shop with a Grocery List
Perusing the grocery store aisle for
tasty treats and new deals can be tempting and exciting, but at the end of the
shopping trip, you might have a $100 cart overflowing with extra items.
Creating a grocery list (and sticking to it) will help you save money and put
an end to impulsive purchases. It will also help your meal planning and
encourage you to cook more and waste less. Also check to see if your grocery
store has a rewards program, so you can receive cash bonuses and coupons when
you shop!
Cut
the Cords
Cut cable, turn off the TV, ditch your
landline, and conserve your lighting usage. You might not think that these are
ways to reduce spending, but they will add up overtime. Take a look at your
cable and cell phone services and ditch the ones you don’t use. Summer is
approaching, so utilize natural lighting and beautiful weather to spend less
time on your electronics and more time outside!
Sell
Before Donating
If you have piles and boxes of unwanted
clothing and items, make some money off your merchandise and sell them online
Don’t
Autosave Your Payment Information Online
Shopping is easier when you don’t even
have to input your credit card information and address into the website when
you’re prompted to pay. It’s also more dangerous and can result in too many
impulsive buys. Make it harder on yourself to shop online, and don’t fall
victim to autosave.
Drink
Water
Another way to save money and calories is
by drinking more water. Drinking about two liters of water per day will keep
you hydrated, help your stomach feel full and make you less likely to overeat.
It will also help you save money and refrain from drinking soda or coffee whose
costs can add up. Remember: water is free!
Explore
Free Events
Summer is a great time to explore your
community and spend time in the sun. Many cities offer free concerts, movie
nights and other events for residents and visitors to enjoy. Check out your
city’s community bulletin or scroll through Facebook’s event page to see what’s
happening in your area!
Visit
the Library
If saving money is making you feel
helpless and bored, take a trip to your local library. A library isn’t just a
place to read. You can socialize with your community, learn something new,
check out a movie or CD, and attend free events or workshops. Unleash your
childhood nostalgia and see that having fun in a library can be just as
enjoyable for an adult as it is for a kid.
What are some ways you save money on
everyday things? Let us know in the comments!
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