Small shifts in the way you think about money, or how you spend and save it, can make a significant impact in your life, helping you reach goals you once thought impossible. These money-saving hacks can help you reach your financial goals by helping you save.
Know the Numbers
Before embarking on any financial endeavors, it's crucial to thoroughly assess your financial situation. Take the time to analyze your income, debts, savings, and investments. By meticulously crunching the numbers and consolidating them in one accessible location, you ensure easy reference for critical financial choices that may arise unexpectedly. This comprehensive overview empowers you to make informed decisions and effectively manage your finances.
Additionally, consider seeking professional advice to enhance your understanding and develop a robust financial strategy. Remember, knowledge is key in navigating the complex world of money, and staying organized allows you to adapt swiftly when faced with significant financial dilemmas.
Get a Budget!
Before we dive in, let's take a friendly approach to managing your money. It's important to know where your hard-earned cash goes each month, as well as your spending habits over time. Creating a simple monthly budget can give you a clear picture of your expenses.
You can make your own budget on a spreadsheet or use user-friendly apps that make it easy and fun. By keeping track of your spending, you'll be able to identify areas where you can save and make smart financial choices for a brighter future. Remember, it's all about taking small steps toward financial freedom.
Stay Out of Debt
When it comes to saving money, we understand the struggle of getting trapped in a never-ending cycle. At our core, we believe that all forms of debt are best avoided. If you find yourself longing for something you can't afford, the key is to incorporate it into your budget. It may take a few weeks or even several months of saving, but the satisfaction you'll feel in the end will be well worth the effort.
Alternatively, if patience isn't an option, consider exploring opportunities for higher-paying jobs or side hustles to supplement your income. Our goal is to provide you with effective strategies to take charge of your finances and discover innovative solutions.
Do Repairs and Maintenance Yourself
An additional method to save money effectively is by taking charge of all your car or home maintenance and repairs personally. Thanks to the abundance of YouTube tutorials and detailed step-by-step guides available on the internet, you're guaranteed to discover online assistance for any issue that requires fixing.
Whether it involves rectifying a malfunctioning faucet or restoring a broken machine, you can significantly cut costs by ordering all the required components and handling the repairs yourself. This approach not only helps you save money but also empowers you with valuable skills that can be applied in various situations, leading to increased self-reliance and financial independence.
Never Use Credit Cards
People often fall into the trap of spending beyond their means due to the ease and convenience offered by credit cards. Companies capitalize on this by profiting from individuals who accumulate credit card debt without much consideration. To avoid unnecessary financial strain, it is crucial to resist using credit cards unless there are clear financial advantages.
Credit cards create a sense of detachment from physical money, leading to impulsive spending. However, it's essential to maintain discipline and consistently pay off credit card balances in full. By doing so, you can avoid accruing high-interest rates and maintain a healthy financial outlook.
Have Your Own Emergency Fund
Be sure you set aside enough money in case of an emergency as you never know when you might need it. If you want to rest easy at night and not feel this financial pressure every day, we recommend having between six months to a year of living expenses in an easily accessible account.
You can always start with a small amount but we would propose working up to a minimum of two months to give you an easy mind and enough time to come up with a plan, should anything happen. At first, it might seem impossible to accomplish but trust us, once you get going there will be no going back.
Spend Less Than You Earn
The anticipation and excitement surrounding payday reveal a concerning reality for many individuals. They eagerly await their paycheck because it ensures they can cover essential expenses such as rent, groceries, and loan payments. However, relying solely on monthly income to sustain basic needs is a precarious position to be in. If a person cannot survive even a single month without their salary, it is crucial to reassess and curtail spending habits.
Implementing budgeting techniques, distinguishing between wants and needs, and seeking ways to reduce expenses are vital steps toward financial stability. By building an emergency fund and developing a more sustainable approach to money management, individuals can break free from the cycle of living paycheck to paycheck and gain greater financial security.
Set Realistic Goals
Saving for saving's sake may not be an appealing idea but if you have something to look forward to, it will make it all worth your while. Seeing your account grow every month is a good enough reason to save, but when you set goals for yourself, you will find you have even more motivation to do so.
Whatever your goal may be, it doesn't matter how big or small, make sure you have one. It will help you keep track of your progress and give you something to aim for! When you have a target and something to look forward to, without noticing, your money is invested in the right places.
Start Investing
Investing your money offers the potential for significantly higher returns. Once you dive into the world of investments and witness the possibilities, you'll comprehend the importance of letting your money work for you. Consider exploring investment options such as Index Tracking Funds and ETFs, which provide diversified exposure to various assets. Real estate is another viable avenue for investment, offering potential appreciation and rental income.
By strategically allocating your funds to these ventures, you can harness the power of compounding and create a solid foundation for long-term financial growth. Remember, investing comes with risks, so it's essential to research and seeks professional advice to make informed decisions aligned with your financial goals.
Drive Safer
By becoming a more responsible and careful driver, you can significantly reduce your car insurance expenses and save a significant amount of money. Insurance providers often charge higher rates from people with a history of traffic offenses. By adopting a securer approach behind the wheel, practicing safe driving techniques, and adopting traffic regulations, you can mitigate risks and potentially lower your insurance premiums by up to 20%.
Remember, maintaining a clean driving record not only helps you save money but also contributes to a safer road environment for everyone. So, slow down, exercise caution, and watch your auto insurance costs dwindle.
Grocery Shopping
Never go into a store on an empty stomach. Hunger has a way of clouding judgment and tempting us to buy items we don't really need. To avoid this temptation, plan your shopping trips when you are stuffed with food and only navigate through the specific aisles that have the items on your list.
Speaking of lists, creating a well-thought-out shopping list is a reliable roadmap, preventing you from succumbing to unnecessary purchases. This will also enable you to make wiser choices. By approaching grocery shopping with a full stomach and a focused mindset, you'll not only satisfy your hunger but also save money and practice mindful consumption (and have some to go to restaurants with).
Reduce Your Monthly Cable TV Bills
In a world where movie lovers can easily satisfy their entertainment cravings with affordable streaming services like Netflix or Hulu, shelling out a whopping $200 per month for HDTV channels seems rather ridiculous. Innovative solutions offer a cost-effective alternative. Priced at around $40 when purchased directly from LiveWave's website for example, this antenna and similar products have the potential to pay for themselves in less than a week.
With LiveWave or its counterparts, you can access a plethora of high-definition channels without the burden of exorbitant monthly fees. Embracing such technology allows you to enjoy quality programming while saving a substantial amount of money in the long run. So, say goodbye to pricey cable subscriptions and embrace the affordability and convenience of other outlets.
Cancel Subscriptions You Don't Use
An effortless way to save a notable amount of money is by reviewing your current subscriptions. Take the time to understand each one, cancel those you no longer use, and review the value of the remaining ones. Often, money flows in and out of our accounts, making it difficult to notice where it's being spent.
By consciously monitoring your monthly expenses, you'll uncover subscriptions that can be easily dropped. These could include streaming services, memberships, or other charges. By identifying and eliminating unnecessary expenses, you can regain control over your finances and allocate your hard-earned money toward the things that truly matter to you.
Things Don't Make You Happy
There's a myth about retail therapy and that shopping can help relieve stress. If we think about it, it doesn't really make sense. This is because you spend a lot of money on things you probably don't need just to alleviate stress when there are other free ways to unwind and relax.
Following this kind of belief can put you in debt and you will keep struggling if you don't stop. Material things cannot make you happy because you definitely won't be happy to see your debts piling higher and higher. Remember, you might think you feel good for about 20 minutes, however, once you get home and unpack the shopping bags, you'll be back at square one.
Brew Your Own Coffee
If you're looking to reduce your daily visits to Starbucks and save money, brewing coffee at home is a great choice that will also save you some money. However, even home-brewed coffee can become costly if you have a penchant for expensive specialty beans and roasts.
To strike a balance between pleasure and savings, consider mixing high-end coffee with more affordable store brands. By blending the two, you can stretch your dollar without sacrificing the enjoyment of a good cup of joe. This way, you get to indulge in the flavors and aromas you love while also being mindful of your budget.
Exercise at Home
Ultimately, prioritizing what works best for you is crucial. If investing in a gym membership brings you joy and motivates you to stay active, then go for it. However, if saving money is a priority, exercising at home can be a game-changer. Discover a nearby park to go for runs, or consider purchasing simple weights and a chin-up bar to kickstart your home workout routine.
With the abundance of workout videos available on YouTube and various bodyweight exercises that require no additional equipment, you have plenty of options to explore. So, whether you choose the gym or the comfort of your own home, the key is to stay active and find a routine that suits your preferences and financial goals.
Display Money Jars
Visual reminders can be incredibly effective when it comes to saving money, and what better way to achieve this than with a classic "piggy bank" jar? The beauty of using jars as savings containers lie in the fact that when you witness your money grow, the temptation to spend it vanishes.
Simply collect spare coins and bills in these jars, keeping your savings goals right in front of you without the need for complex spreadsheets. Whether your aspirations involve buying a new rug you've been wanting or going on an epic cross-country road trip, anything is possible with your trusty goal jars.
Farmers' Markets
Being the first car in the farmer's market parking lot not only guarantees you a prime parking spot but also offers the advantage of securing the best selection of fresh produce. Directly purchasing from farmers can help you save a substantial amount of money, as their prices are often more affordable compared to other sellers. Moreover, by the end of the day, the farmers strive to sell their remaining products rather than bring them back, resulting in reduced prices.
By timing your visit to the farmer's market towards closing hours, you can take advantage of these discounted rates and obtain high-quality products at a lower cost. So, whether you're an early bird seeking the freshest picks or a savvy bargain hunter looking for end-of-day deals, the farmer's market is the place to be.
Plan Your Meals
Meal planning has proven to be a game-changer, especially when it comes to minimizing food waste. By integrating meal planning into your routine, life becomes more affordable, and you purchase only what you are about to use. Preparing and organizing your meals in advance allows you to evaluate what ingredients you really need and to understand what you already have.
This approach helps prevent buying things you don't need and ensures that you use all the ingredients effectively, reducing the possibility of food waste. By embracing meal planning, you not only simplify your life but also contribute to a more sustainable and responsible approach to food consumption.
Bottled Water
There is an underlying cost swimming in the sea of single-use plastic water bottles. Instead, consider the eco-friendly alternative of investing in a reusable water bottle. This not only benefits the planet but also saves you money compared to constantly purchasing disposable ones from the grocery store. A water filter container provides the same functionality.
Let's break it down: assuming a store-bought plastic water bottle costs around $1, you'll recoup your investment after just eight or nine uses of a reusable bottle. From that point forward, every refill is a financial victory and a positive contribution to reducing plastic waste.
Make More Money
Another way to save more is, guess what? Make more money. Shocker, we know, but hear us out. If you spend $2,500 every month, and you make $3,000 a month, you could try to live more on the frugal side and save a bit more, but of course, there is a limit to how little you can survive on.
So instead, try doing a bit of overtime every week in your current job, ask for a raise, or get a better-paid job. If you can put aside a few hours every day, there are great ways to make up to $100 extra a day.
Set Weekly Reminders
Establishing weekly reminders to pay off your credit card balances is a wise practice that keeps you up to date about your spending habits. It prevents the potential shock that may arise when you finally confront your expenses at the end of the month. By proactively managing your credit card payments, you stay in control of your financial situation and avoid any unpleasant surprises.
Additionally, staying aware of your bank account balance ensures that you always have a clear understanding of your available dollars. So, set those weekly reminders, stay on top of your credit card payments, and maintain a healthy awareness of your bank account balance. It's a recipe for financial stability and peace of mind.
Limit Your Credit Cards
While it can be tempting to have multiple credit cards for various purposes, it's important to be aware of the potential impact on your credit scores. Even if these cards carry outstanding balances that are not used, it can give the impression that you are a higher-risk customer that has issues with paying debts.
Unless you have loads of time and peace of mind to remember all of the terms and conditions of each card, we suggest sticking with just one or two cards. Simplifying your credit card portfolio not only reduces the risk of missed payments but also allows you to better track your spending and preserve a clear overview of your financial commitments.
Prioritize Your Debts
If you first decide to save and don't focus on paying off your debt, you will end up spending more on credit card interest charges. Since credit card interest rates are usually higher than savings interest rates, you may pay more money on debt interest than you would earn on your savings.
From a financial perspective, it is best to pay off your debt at the highest-rate first. If you have multiple debts, prioritize your debt according to the highest interest rates first. Once those are paid off, you can focus on the next-highest rates. It really is simple logic when you think about it.
Try a Non-Spending Day
Have you ever tried not touching your wallet for a whole day? Seriously, having a whole day buying absolutely nothing. It's much easier if you do it during a workday, as you'll probably want to treat yourself over the weekend. Walk to work, bring your own lunch in only drink the free coffee and fill up your bottle with tap water.
Cook a homemade meal for dinner, and read a book in the evening. And if you are up for it, go for a non-spending week! It may be a real challenge but you'll learn there are many things you can easily live without.
Amazon Purchases
When you spot something on Amazon, fight the urge to buy it immediately. Instead, add the items to your shopping cart and let them sit there for a few days or even a week. Watch the price closely during this time, as there's a good chance it will drop. By patiently monitoring the price, you may come across an opportunity to get the item at a discounted rate.
If that's not enough, Amazon may even send you an email offering additional discounts on the product. By exercising patience and utilizing this smart shopping strategy, you can potentially save a substantial amount of money on your Amazon purchases. So, give your cart some time to work its magic and unlock the potential for enticing discounts.
Discounted Gift Cards
If you're a wise shopper, taking advantage of discounted gift cards can lead to substantial savings. However, it's crucial to do some research and be careful when dealing with certain card sites. While some platforms offer the option to sell back unused cards, it's unlikely that you'll receive the full credit or cash back.
Nonetheless, a handful of websites specialize in selling gift cards, allowing you to obtain them at a discounted price and save money on your purchases. By combining dynamic research with strategic utilization of discounted gift cards, you can maximize your potential savings and make the most of your shopping experience.
Online Purchases
When shopping online, it's important to look out for shipping and miscellaneous fees that can quickly accumulate. These additional costs can significantly impact your overall spending, so it's wise to carefully review them before making a purchase. If online shopping is a regular thing for you, consider planning ahead and buying in bulk instead of individual items.
Buying in larger quantities can help you save money and potentially qualify for discounts or special offers. Additionally, teaming up with friends to make a bigger purchase can be beneficial, as it may enable you to reach free shipping thresholds and share the cost savings.
Seasonal Sales
Throughout the year, numerous stores offer sales and discounts during specific periods, a great opportunity for saving some money. With a little research and strategic planning, you can time your purchases to align with these promotional events. Whether it's annual sales, quarterly discounts, or special occasions such as public holidays, these seasonal sales tend to occur repeatedly.
By staying informed about the timing and frequency of these sales, you can optimize your shopping experience and maximize your savings. Keep an eye out for advertisements, newsletters, and online announcements from your favorite stores to stay updated on upcoming sales, allowing you to make the most cost-effective purchasing decisions. You're welcome.
Compare Prices Online
In today's digital era, we are fortunate to have easy access to the world wide web, empowering us to conduct thorough research and make informed purchasing decisions. To ensure we get the best value for our hard-earned money, it's advisable to use online resources in the best way possible. Start by researching whatever it is you want to buy and compare prices on at least three different shopping platforms.
Google Shopping is one of the most popular choices, and there are loads of websites that will do the comparison for you. These platforms enable you to compare prices, read reviews, and explore various purchasing options, allowing you to make well-informed choices and stretch your budget further. By harnessing the power of online resources, you can optimize your shopping experience and secure the best possible deals.
Email Offers
If you find yourself consistently spending too much money online, it becomes crucial to understand the reasons behind it. Deals or sales presented through email can lead to buying unnecessary things and blowing up your credit card bill. In such instances, it is important to recognize that unsubscribing from these promotional emails can be the most effective course of action.
By doing so, you may discover that after a few weeks, you save a considerable amount and realize that you can easily do without unnecessary shopping. This newfound awareness can empower you to make wiser financial choices and cultivate a healthier relationship with your online spending habits.
Watch Your Rent
If your monthly rent is more than 40% of your salary, it unquestionably becomes an unsustainable burden on your finances. In such cases, it is crucial to confront this reality and take the necessary steps to ease up the situation. Swallowing your pride, you have two possible options.
Either seek a roommate to share the expenses or actively search for a more affordable place to live. By embracing these choices, not only will you achieve a more balanced budget, but you will also reduce financial stress and create room to save for other meaningful things you feel that you must buy.
Take Advantage of Reward Points
If you are an American Express owner who has a significant amount of shopping to do, consider visiting Amexrewards.com. On the website, you will discover potential deals and discounts with various vendors and branded chain stores such as J Crew, UNIQLO, or Banana Republic. Why not potentially save up to 20 percent on purchases from clothes retailers?
Not only that, but you can also maximize your savings by combining the benefits of Amex offers with additional online coupons or in-store discounts. This will allow you to make the most out of your shopping experience while keeping your expenses under control.
Go Minimal
Embracing the principles of minimalism in your lifestyle is one of the best ways to save money. Instead of purchasing decorative items and accessories, focus on buying only things you really need, which will eventually result in cost savings. Adopting a simplified existence doesn't have to be complex; by prioritizing what truly matters to you, you can take on a life of minimalism.
As you get rid of the things you don't need and streamline your possessions, you'll find a newfound sense of contentment and fulfillment in living with less. Moreover, the financial savings derived from mindful consumption will provide you with greater opportunities to follow your passions and invest in experiences that truly resonate with your values.
Lend and Borrow
Give all those books, clothes, and furniture you don't need anymore to your friends and family (and we are sure you have loads that will be happy to receive these freebies). Not only will they remember it's from you, but you'll know it's going to someone you care about and it might create a ripple effect.
It could make it easier to find things you need from your circle of close friends and family and the next time you might need something specific, send out an email asking if anyone has it. Chances are, they'll give it to you for free if they don't use it anymore.
Cook Your Own Meals
It's very easy to learn kitchen skills on YouTube and to find meal inspirations online. We know this might seem more difficult than eating out, but it doesn't have to be! Check out recipes you would want to eat and from there you might learn a great new skill that will always come in handy.
To start off, find a few good dishes that only require one pot — not only will this make cooking easier but also cleaning up will be quicker. Fun fact; many restaurants publish their famous recipes online. You will be amazed by the difference in price when buying all the ingredients as opposed to buying the final dish.
Multi-Purpose Items
As much as possible, choose multi-purpose items. Figuring out a truly good financial hack is one of those things that, once it happens, can make you see your money in a totally different light. For example, it will be cheaper to have a good phone that also has a good quality camera in it already than an average phone plus a separate good camera.
Or get a couch that also pulls out into a bed for guests that come to stay over on the odd occasion. And besides, who can be bothered to carry a real camera wherever they go? It's all about being spontaneous, taking photos when you least think about it, and saving a few bucks on the way.
Frugal Gift-Giving
Gift-giving is one of the most wonderful traditions that we have as human beings, it shows generosity, kindness, and care for those that we love. But more recently, it has become commercialized and it can end up being really expensive. Instead, try being creative with your gifts, you can bake something that you know will be appreciated or spend time doing something fun together.
Often, the thought and effort behind the gift can make it more valuable than the gift itself. Another great idea, is when a friend has a new baby, make them a babysitting card, and donate your free time to looking after the baby. Great gift for them, and saving money opportunity for you.
Talk With Your Significant Other
It is essential to be on the same page as your significant other when it comes to money. You should both have the same financial goals, and you should agree on a general spending plan and a system for buying. Make sure you both know what your current balances are and what bills still need to be paid, etc.
Communication is key and a weekly meeting of just 20 minutes will help. The worst thing that can happen is that you choose the cheaper clothing and look for supermarket coupons, and then your other half comes home with a brand-new car.
Trust Women
When faced with uncertainty regarding investment decisions, seeking guidance from women investors in your life can be the best thing to do. Historically, women have shown an exceptional talent for saving and being cautious with money. Their tendency to prioritize long-term financial security over impulsive purchasing often leads to more conservative investment choices.
Engaging with women investors can provide useful insights, strategies, and perspectives rooted in careful consideration and a comprehensive understanding of the market. By leveraging the wisdom and expertise of women investors, you can improve your own financial understanding and make informed investment decisions that align with your goals and aspirations, promoting a prosperous and secure financial future.
Insurance
If we were to ask you 'What's something you pay for but hope you never need to use?' your answer might be insurance. It might be painful to part with the money you've worked hard for, but insurance is something you have to get. The idea should be that you don't have to get all types of insurance to be adequately covered.
Taking stock of what your priorities are might mean you can downgrade your current insurance to something less pricey and save money in the process. Remember, insurance might cost a bit, but if you don't have any, it will eventually cost a lot.
Grow Your Own Garden
You don't need to have a big backyard to start your own garden. With the proper amount of light, you can start growing your own herbs, leafy greens, small fruits, and vegetables in small spaces and even indoors. The key to growing any type of plant indoors is understanding how much light it needs to flourish. This will save you some money and you'll get the satisfaction of being more self-sufficient.
We guarantee your salads will now taste better, your lettuce will look better and your shopping bill will gradually get smaller and smaller. Within no time you will be growing your own fruit and veg and even sharing them with your neighbors.
Try Buying Used
Another trick to stretch your money is to buy used instead of new. This may not work for every single item you need, but there are many things you can buy like clothes, furniture, and even cars that will be much cheaper. eBay, Craigslist, and Facebook Marketplace make it easy to look for used items.
Yard sales and consignment shops are also good options. Now, don't think that it's a matter of compromising. You'll be surprised how many vintage and unique items you can pick up in flea markets. These items are more valuable and with a significant meaning to them. Much more interesting than an IKEA cabinet.
Read the News
Reading the finance section in your local newspaper is a great way to familiarize yourself with financial affairs, and money matters and you will also learn some economic terms. Should you invest or save? Is it a good time to buy or should you continue renting?
Staying in touch with the news will give you great insights into market movements. Sometimes all we want to do is escape the current affairs, however, these matters can help us lead a more stable, economical life that will leave us with a few extra dollars to invest in a nice annual family holiday.
Use the Envelope System
The envelope system works like this: you divide your cash for every category and place it in an envelope. The categories can range from groceries to gas and even recreational activities. Once you've spent your allotted amount you are not allowed to spend more.
This will help you to be really careful with your money, and hopefully, you won't spend unnecessarily. This is a great exercise to teach children how to handle money. It is a great way to put money aside for specific matters, like a holiday or a new computer and it will help you stay within budget.
Cut Your Utility Bills
Most people would assume that there isn't much you can do about utility bills. That the price you get is the only price the supplier can give. Well, it's not always up to the supplier and you can take charge of what you pay. Believe it or not, there are some strategies you can practice that will help lower the price of your utilities.
We are talking about water, electricity bills, and gas! First, you can install low-flow showerheads and faucets which will control the amount of water that comes out. Additionally, you can set your thermostat a bit higher in the summer and a bit lower in the winter. Seal all the tiny cracks around your windows and doors so your house is less affected by outside temperatures.
Stop Shopping at Convenience Stores
Depending on where you shop, there can be huge price disparities. Convenience has a value that many people are willing to pay extra for. This means that if something is more convenient, like a 24-hour store, it tends to cost more. For example, the price of one cup of coffee can cost $4, but if you buy it there, the same cup can cost you around $8.
Shops that are located in wealthy neighborhoods are usually more expensive so try to do all of your shopping in large superstores, and not in the middle of a little village where there is no competition.
Hold a Yard Sale
Selling all those things you don't need and cleaning your home up at the same time can be very therapeutic. You'll likely make easy cash by selling old board games and puzzles sitting on your shelf or that gift box of soap you've never used. You will be surprised by how much cash you can earn and if you really want to.
You can begin selling more of your stuff on Craigslist or eBay. It's time to get out your grandmother's old set, your child's vintage 1980s toys, and the 1960s pair of jeans you haven't worn for more than a decade now. You'll be surprised how much they are worth.
Use the "30 Day Rule"
This rule can come in handy when it comes to avoiding huge purchases you don't really need. It's a simple procedure — if you're considering buying a big-ticket item, like a brand new $400 watch or $500 golf club, let the urge go for 30 days. After that time, the "impulse" to purchase will likely disappear, and you'll have just saved yourself a pretty penny.
If it doesn't disappear, then maybe you should buy yourself that brand-new watch, but remember that must come instead of something else on your Christmas list. We can't have it all. Those watches can for sure make some people feel much better.