One of the most common reasons I hear people are not investing is because they cannot save enough of their paycheck. A lot of people I know including friends and family are stuck in that paycheck to paycheck cycle and it can feel impossible to get out of. Believe it or not though almost all of us can cut expenses somewhere and form better habits when it comes to money. In todays post I’m going to share ten different methods that you can use to save money so that you can get it to work for you instead of against you…
Stop Paying Unnecessary Bank Fees
My first method for saving money is going to be a simple one stop paying bank fees that you don’t need to! In todays day and age I really do not understand why folks are still handing over their hard earned money to banks just for the privilege of having an account and other simple little things such as withdrawing cash from a ATM. There is a vast amount of banks out there that will let you open an account with no monthly fees and will not nickel and dime for ATM fees and such. Just do a simple search on the web and you can find plenty of banks with little to no fees. This a great way to save a few dollars without doing much.
Bonus technique: Try to couple this method with a bank that offers a high yield savings account so you can earn some interest on your savings
Cut The Cord
This one should be obvious but money of my friends and family members are still paying for cable! I highly recommend cutting the cord as there are plenty of other options for your entertainment and media needs. Personally I cut the cord many years ago as I made the switch to streaming and haven’t looked back. Being a big sports fan I was worried at first about cutting the cord at first but I am able to watch quite a few games free of charge with my antenna that picks up my local channels and I also have a subscription to Sling TV that has a few sports channels included as well. I highly recommend picking up a low cost antenna even if you’re not a sports fan as you can probably pick up quite a few channels for no cost other than the initial cost of the antenna. This is another tremendous way to save some money!
Lower Your Phone Bill
First things first let me start out by saying I am in no way recommending you cut out your phone all together rather I am suggesting you lower your bill. I’ve noticed a lot of folks are paying too much for their phone and they don’t even know it! Instead of getting the latest and greatest smartphone with all the bells and whistles on one of the big carriers I suggest getting a lower cost smartphone on a budget carrier that allows you to pay month to month. I will be the first to admit I was guilty on this one prior to this year. I always had to have the newest model smart phone with a unlimited data plan and such. But I am here to tell you there are all kinds of great smartphones out there that work perfectly fine for a fraction of the cost of the newest phones out there. I bought my current phone on Amazon for less than 200$ and it works great! I also made the decision to couple my low cost phone with a low cost plan (I pay 25$ a month for 12gb of high speed mobile data!).
Meal Plan and Prep
My next technique is for lowering your grocery bill and that is by way of meal planning and prepping. This is how I managed to cut my food spending in half! The easiest way to get started is by getting out a pen and piece of paper and writing down a meal plan of what you want to cook for the week so you have a blueprint of what you need to buy when you go shopping. This will help you reduce your bill because you will walk into the grocery store equipped with a plan before you walk in rather than just winging your meals which can be a recipe for disaster! The second part of this method is meal prepping which is cooking a large batch of a recipe and splitting it into multiple meals that you can freeze or refrigerate and eat at a later time. Meal prepping has helped me cut back on going out to eat because I know I can come home after a long day at work and have something easy in the fridge or freezer and pop in the microwave for a quick and nutritious meal.
Make Gifts For Others Instead Of Buying Them
With Christmas rapidly approaching I thought I’d throw this method in.. Rather than going out and spending large amounts on gifts think about hand crafting some gifts for friends and family members. This method could also apply to birthday gifts,wedding gifts,etc. You still may have to spend some money depending on what items you have on hand already, but a handcrafted gift could cost a fraction of buying electronics and such.
Visit Your Local Library
This method is very underrated in my personal opinion. You may not know it but your local library can save you a lot of hard earned money. This is a great way to slash your entertainment bill as your library has plenty of books you can rent rather than going out and buying. Another thing to look out for here is if your library offers free movie rentals as many of them do. Instead of going to the movie theater or paying for a movie rental you could possibly net a free or close to free movie night at home!
Get Your Caffeine Fix At Home
As cliche as this method is the cost difference of making your own coffee at home rather than hitting up the drive thru will really add up fast. If you’re on a tight budget I cannot recommend this method enough. I believe its okay to splurge on a fancy cup of joe every once in a while, but I wouldn’t make it a habit. The savings can really add up fast here with very little effort. Just make sure to get yourself a good coffee maker so your not having to replace it frequently and start watching your savings grow!
Pay Down Your Debt
Before dipping your toes into investing I believe its wise to pay down any high interest debt. Not only does debt repayment eat into your monthly cash flow the interest charges can really put a dent in your savings. Another consideration here is to call up the bank and see about lowering your rates it never hurts to ask.
Call Your Insurance Company
Be sure to call your insurance companies every six months or so to make sure your receiving all the discounts that you may be eligible for. Also be sure to check that you have an ample amount of coverage for your specific needs to avoid any unforeseen expenses. Personally I tend to be overly cautious when it comes to my insurance but I’m always expecting the unexpected. Most people don’t think about their insurance until they end up needing it and its to late.
Track All Of Your Expenses
I saved my best method for last… I highly recommend tracking every dollar that comes in and out of your possession. The only way to change your spending habits is to have a clear picture of where your money is going. I noticed a huge change in my spending behaviors after logging my expenses and income as I now am held accountable for each transaction I make. There is plenty of free apps you can download to track your expenses you do not need to pay for one by any means. It’s definitely a little extra work logging every single transaction you make but it is one thousand percent worth it to me.
Conclusion
I hope this blog post serves as a good starting point to reducing your monthly expenses and putting more money to work for you. The more that you cut unnecessary expenses the faster you can get to where you want to be. I am personally aiming to become finically independent so it is of the upmost importance for me to make wise decisions with my money. At the same time I do believe it is important to enjoy life a little now as well so I don’t recommend living a totally barebones life either! I just try to be as prudent as possible with my money and reward myself every so often for my hard work and I believe you should as well!
Thanks for reading!
Disclaimer
All information on this blog is solely for entertainment purposes. I am NOT a licensed professional of any kind. Any stock transactions or analysis published on this blog should NOT be considered investment recommendations. Please consult with a licensed financial/tax professional before investing any of your money or undergoing any financial/personal changes. Unless your investments are FDIC insured, they may decline in value. I will NOT be liable for any losses,damages,errors,or omissions. All information is presented as is with no warranties.
