As a teacher, increasing my income is not always a viable option. However, managing my income is always a great way to save more money. I have created significant savings utilizing my current salary. So here is a list of great ways to start saving money now.
-
Don’t buy it right now, buy it next month. If you still want it in a month, it is probably worth buying. If you don’t want it, well, it’s a good thing you didn’t buy it.
-
Do not go grocery shopping on an empty stomach. I have a lot of trouble with this one. I walk into my local supermarket intending on getting $12.00 worth of items and walk out with $40.00 worth of junk food. Not a great way to save money now.
-
Learn the difference between a need and a want. A need is something that you cannot live without. A want is something that costs a lot and usually offers very little value. I needed a second vehicle. I want a brand-new Harley Davidson Motorcycle. We made the decision to a used truck for few thousand dollars. I could have bought that Harley for $18,000. I not only saved thousands of dollars, I can finally do all the yardwork tasks my wife has been asking me to do for a while now. Wait… What have I done?
-
Cut out luxuries. Do you really need an $8 coffee every morning? Let me pull out my calculator. That is $40 dollars a week. $160 dollars a month. And $1,920 dollars a year. And that is just coffee. Imagine how much money you could save in just a few months cutting luxury items. Save money now by brewing your own coffee, or limiting the amount of times you visit your favorite barista.
-
Buy in bulk. While it costs more upfront, it can add up to significant savings in the long term.
-
Pay yourself first. I love this one. There are many financial advisors out there who recommend paying at least 10-20% of every paycheck to yourself before you start spending it. If you save that money, pay off debt, or invest it, it will add up quickly. Save money now so that you can build towards your future.
-
Budget like your life depends on it. Every dollar you spend, is a dollar that you can’t save or invest. Every dollar that you don’t budget, is a dollar that will disappear. If you don’t budget currently, try tallying up what you spent your money on last month. You will be surprised by how much you waste.
-
Don’t start budgeting in a few years, start now. As the old saying goes ““You may delay, but time will not.”
-
Stay away from credit cards. These little devils can literally ruin lives. I have never had one and have never regretted not having one. There is very little upside, and a lot of downside.
-
Don’t buy new. New cars are nice. New cars smell good. However, new cars are a terrible way to spend your money. New cars can lose 30% of their value within 1 year, and 60% of their value within 5 years. Buy a used car. Please. Just do it.
-
Get rid of cable. Cable can be ridiculously expensive, especially considering there are many other viable alternatives that cost just a fraction of the price.
-
Don’t go out to eat. This is where I personally fall short. A few years ago, when we first decided to start budgeting, we found out that we were spending ridiculous amounts of on unnecessary food. It literally made us sad and amazed at the same time. Sad because we had mismanaged our money on something that has such a little impact on our life. Amazed because we found an avenue in our life where we could save money easily.
What other tips or tricks do you use to save money?
July 25, 2018 at 06:25PM
