How to Save Money: Try our 22 Tips for Saving Money
Tired of Living Paycheck-to-Paycheck? Try our Tips for Saving Money.
Starting new habits to save money can be a life-changing experience. For people who live paycheck to paycheck, saving money seems impossible. In reality, saving money doesn’t require a specific time or circumstance. In addition, you don't need to have a copious amount of income to start saving. Instead of waiting for some miracles, you can begin to save money right now. So, here are our tips for saving money.
Despite the advantages that it can bring, many people are struggling to start saving money. Other than saving your life from debt, saving money can give you a lot of advantages. For instance, by saving money, you don't need to worry about your spending during emergencies. Since you will use your own savings, it can dissuade you from using a credit card or applying for loans.
Besides emergencies, there are always reasons to start saving money. You may want to start saving money for a house, a car, or even an education. Regardless of the reason, saving money can give you monetary freedom in achieving your goals. Lastly, saving money can be a great way to accumulate your wealth. Moreover, saving is the best way to invest in the future.
Best ways to save money
You can start saving money by doing several things, such as spending less on groceries, using mass transport instead of a private vehicle, etc. But, certain changes in habits may not be suitable for your lifestyle. So, we have provided several tips that you can do to start saving money.
1. Saving money on groceries.
Have you ever gone on monthly grocery shopping only to be shocked by how much money you actually spend? If yes, it is probably the main reason behind your difficulty in saving. To overcome the problem, try to spend less money on groceries by planning your weekly meal. By doing that, you can easily determine the essentials to get you through the week without having to pay extra.
2. Canceling subscription-based service.
Netflix and other streaming services have become the most common way of spending free time. But, have you considered how much subscription-based entertainment services cost? A 2021 survey report by West Monroe revealed that the average US household spent around $273 per month on subscription services. So, unless you have all the money in the world, canceling those services is a good idea.
3. Avoiding popular brands.
Choosing a generic brand is one of the best ways of saving money. It may be hard to believe, but name-brand products are not better than generics. The only strong point of name-brand products is the marketing campaign made to make them stand out from the rest. So, next time you're going to the store, pick those generic cola brands instead of Coca Cola or Pepsi.
4. Saying goodbye to cable TV.
TV is expensive, messy, and outdated. Despite that, a 2021 Statista report about the average monthly cost for satellite TV services in the US revealed that around 39% of customers spent more than $100 a month on TV. Despite the high price, TV service is not better than other streaming services. So, as one of the tips for saving money, we highly recommend you cancel your TV service and opt for streaming services instead.
5. Eating your own lunch.
When you're working in an office, it is very easy to spend some money on lunch. While it only costs around $3 to $5, buying lunch is not the best way of saving money. Instead of doing that, try to bring and eat your own homemade lunch. Besides saving a couple of bucks, eating your own prepared lunch is also a healthier option. So, despite the inconvenience, preparing your own lunch is worth a shot.
6. Paying things in cash.
Despite the oddity, paying things in cash can be the best tip for saving money. By paying in cash, you will have full buying power and room for price negotiation. This can be applied to big and small purchases, such as cars, etc. So, start paying things in cash now to start saving money.
7. Reducing energy usage.
Energy usage can come from various things, such as driving a car, watching TV, and taking a long shower. To be able to start saving, make sure to reduce energy usage as best as you can. For instance, instead of driving your car to work, you can use the bus or tram. If you're used to taking a long shower, try to take a short shower instead. Besides being more environmentally friendly, doing these small things can be the best way to save money.
8. Living minimally.
Living minimally can be the greatest way to start saving money for your goal. It can start by selling things that don't bring you happiness. Selling things you don't need can also be the best way to declutter your home. Moreover, there is nothing wrong with having a lot of free space in your home.
When it comes to saving money, what is a good rule of thumb?
We understand that starting the effort to save money can be a difficult task for some people. Especially since you'll always find a way to spend your savings on something urgent, such as medical bills, home repair, etc. However, there are a lot of ways to save money each month. One of them is the 50/30/20 rule.
So, what is the 50/30/20 rule? The 50/30/20 rule is essentially a budgeting rule that you can adopt in your effort to save money. The rule suggests you separate your monthly income into three parts, 50% for essential needs like bills and rent, 30% for wants and self-reward, and 20% for saving and investment.
The rule originated from a 2004 book titled "All Your Worth: The Ultimate Lifetime Money Play" by US senator Elizabeth Warren and her daughter Amelia Warren Tyagi. The book was written based on 20 year-long research on the best ways to save money. The goal of the rule itself is to encourage people to save more efficiently.
How to Start Saving Money
Saving money can start by doing something simple, such as using less electricity, planning weekly meals, and using public transportation. When you've done all of those activities, be sure to not use the saved money for unnecessary spending. Instead, put in a secured bank account designated for your life-saving.
That way, you can achieve your goal of saving money each month. In addition, you can also apply the 50/30/20 rule to separate your monthly income into several parts. It is worth noting that those rules aren't fixed, you can dedicate more income to saving. So, be sure to apply those tips for saving money to escape the paycheck-to-paycheck life.