Saving money is hard. There are just so many things to buy! And so many things that need to be paid for! The water heater needs to be replaced. The new iPhone is out. The car keeps making weird noises. Hawaii is really nice this time of year.
We get it. That’s why saving money has to be a lifestyle. It’s a mindset that should become a habit, and habits only form through action! So we’re here for you with eight easy steps to becoming a money-saving machine
- Use Cash
Credit cards are just better than cash. That’s undeniably true. They are faster to use, where just a swipe, a dip, or a tap allows a transaction to happen in a matter of seconds, saving precious time at the checkout counter. They are simpler, without the need to count out the correct amount in dollars and cents or deal with burdensome change after the fact. They are more convenient, replacing bulky cash that makes sitting down on a wallet or carrying a purse that much more cumbersome. They have made the shopping experience, and life in general, much easier.
The problem becomes when your goal is to save money, easier is not better. When you’re trying to save money, it should be as difficult as possible to part with every dollar, which is why carrying every one of those dollars around is important. Studies have shown that using plastic to make a transaction is less painful than using cash and that it doesn’t feel like actually spending money when all that is required is a quick swipe. Counting every dollar out and feeling the lightness in your wallet after every purchase will make you think twice about spending your hard-earned cash.
- Splurge Smart
Occasionally shelling out for a larger purchase, just to treat yourself or someone else can be good for one’s finances. Living a frugal lifestyle makes every big-ticket item that much more precious and meaningful. However, there is a way to take that mindset one step further in the name of savings.
Try this: every time you spring for that cup of espresso, or movie night, or the more expensive car wash where they shampoo the carpets too, put the same amount you spent into your savings account. That way, even when you’re being a little looser with your pocketbook, you can still be saving just a little bit more!
- Save A Fixed Percentage of Each Paycheck
Planning ahead is VITAL to every savings plan. We’ll get to budgeting in a minute, but first, it’s important to start with the basics. Every month, or every week, or every whenever you get a paycheck, the very first thing to do is take a fixed percentage of that check, and put it into savings. The percentage you choose should reflect your savings goals as well as your income, but it must stay consistent. If you decide that ten percent of every paycheck will go straight to your savings account, whether you make 100 dollars in a pay-period, or a million, you will know exactly how much to toss in savings. This is a simple and, more importantly, consistent way to get into the habit of feeding your savings account.
- Don’t sacrifice quality for price
When you’re in the savings mindset, the first impulse when shopping is to find the cheapest version of whatever you need. It can feel great to find six sweaters for the price of that one designer version. The problem is when all six of those sweaters have disintegrated three weeks later, and you have to buy six more. Sometimes shelling out a little extra for the sake of quality can be a wise investment.
Obviously there are instances where the cheaper version of something is just as good (we’ll get there in a second), but there is something to be said for making the investment in something, whether it be a piece of clothing, or a car, or anything that needs to last for a while.
- Eat Out Less
This piece of advice is useful for a number of different reasons. For one, it’s healthier to cook at home. The portions are smaller; there’s less grease involved. It’s almost like someone realized that grease and fat taste good (who knew?).
Another reason, more relevant to this conversation, is that on average, it’s cheaper to cook at home regularly than to eat out regularly. Reusing ingredients for multiple meals, an easier time storing and reheating leftovers, and having control over your own portions and recipe are all conducive to smarter spending habits at mealtime. Of course, there’s no reason to avoid restaurants altogether, as long as they’re closer to once-a-week than once-a-meal.
- Research (Coupons, discounts, generic brands)
Yes, sometimes spending a little extra on certain items can pay out in the long-term, but oftentimes cheaper is most certainly better. That’s why planning, preparing, and researching are an important part of saving. That can mean anything from comparison shopping (a site like Amazon or Google Shopping is really handy for this), to simply searching for coupons and discount codes. These kinds of deals can often be poorly advertised or simply not well-known, but seeking them out can be very rewarding. Basically, impulse buying is the mortal enemy of saving, so be prepared before every purchase!
- Budget
Number seven will probably factor into every article we write about money. That’s because budgeting is so important to a healthy financial life, and yet so underutilized as a tool for saving. All budgeting is, is planning; being aware of where every dollar is going to go each month, or year, or pay-period. It eliminates surprises from your bank statement, and it answers questions about whether or not you can afford this purchase or that expense.
Sticking to a budget, and adjusting it as necessary, provides the structure necessary to be able to save, and not feel lost in your finances.
If there was one overriding piece of advice that could tie all of these tips together, it would be mindfulness. Being aware of how, when, and why you spend your money is the best possible way to achieve savings goals of any kind. In today’s world of commerce, there’s a monthly subscription service that lets you watch any kind of TV show or movie you could want. There’s another that lets you buy anything you could need, from clothing to groceries to a new computer, and have it delivered straight to your doorstep (maybe even by drone). It’s so easy, with the numerous ways available today to spend money, to just toss a little cash one way or the other, and then reach the end of the month and wonder where it went. Making smart decisions, or really any decision at all, about where your money goes and doesn’t go can drastically alter how you spend and save.
