“It’s not about how much you make, it’s how much you save.” – Arthur Williams
Saving $100 a month can mean over $100k after 30 years with compound interest, or almost $500k if you save a $100 every week. Double that amount you save every week to $200 and you could be a millionaire with that extra savings. Saving really does add up.
Here is a list of 10 ways to save that hard earned money:
I. Make A Budget
“A budget tells us what we can’t afford, but it doesn’t keep us from buying it.” – William Feather
It will take some work, but if you can make a budget and keep track of your spending, you have a better chance at seeing your savings grow. Especially, if you pay yourself first and include savings as priority in your budget.
II. Automate It
“Do not save what is left after spending, but spend what is left after saving.” – Warren Buffet
Set it and forget it. Automate your savings, and you won’t even notice the missing money and soon you will have a hefty savings amount. Automate all your bills too so you won’t have to worry about ever getting charged a late fee.
III. Distinguish Between Needs and Wants
“Wealth consists not in having great possessions, but in having few wants.” -Epictetus
Do you really need it? Does it really add that much value to your life that you need to tap into your savings? Our basic needs are clothing, shelter, food and water. Learning to limit our wants can help us reach our savings goals.
IV. Delay Gratification
“A penny saved is a penny earned.” – Benjamin Franklin
Instead of impulse buying, shop around to get the best deals. Often times when you wait, you realize you don’t even need it. Try to avoid emotional purchases and retail therapy.
V. Keep Your Savings Safe
“A nickel ain’t worth a dime anymore.” – Yogi Berra
Keeping your money in regular savings accounts can’t keep up with inflation. Instead, consider putting your money into other accounts such as high-yield accounts, CDs, or retirement accounts.
VI. Buy It On Sale
“Because I bought it on sale I actually made money.” – Unknown
Stock up when it’s on sale. Eventually these small savings can add up to become huge.
VII. Eat In
“You don’t need a silver fork to eat good food.” – Paul Prudhomme
Save on labor costs and learn to do it yourself. Eating out often can hurt your savings so learning how to cook can save you a lot. Try packing your own lunches, making dinner at home, or meal prepping if you’re limited on time.
VIII. Avoid Debt
“Never spend money before you have it.” – Thomas Jefferson
When you can, avoid debt. It can be costly when you borrow money, especially credit cards that charge 20%! If you have debt, get rid of it ASAP. You can find no-fee balance transfer cards or negotiate a lower rate with the credit card company.
IX. Buy Used
“Beware of small expenses; a small leak will sink a great ship.” – Benjamin Franklin
Sometimes it is more economical to buy used, especially for technology which will only improve every year. For a big purchase like a car, instead of leasing, it can be wise to buy used rather than new, since a car depreciates about 10-25% its first three years.
“The first step towards getting somewhere is to decide that you are not going to stay where you are.” – Unknown
Maybe your mortgage or rent is too high, or you’re paying too much in taxes, moving might be an option. In the US, there are 7 states with no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. There are even 5 states with no sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. Some cities will even pay you to move to their state like Alaska and pay as high as $2,000 per year.
There are a countless number of ways to save money and make your money do more for you, so get creative. Happy savings!
What do you think are some good ways to save money?