Knowing how to save money will always be relevant no matter what you do for a living.
Whether you are a small-time roadside deli owner, an early bird 9 to 5 worker who likes their coffee with no cream, or a big-time Bay Street mogul making big bucks, savings could be a life saver.
When it comes to saving money, simple changes like ditching certain habits, getting rid of expenses that are not really important to you, or using technology for savings automation can make all the difference.
There are several things you may want to use your savings for. You may intend to buy a new car, get that house you have always wanted, or just stash some cash in the event of an unexpected rainy day.
Whatever the reason, you will find this article on how to save money very useful.
We’ve gone out of our way to verify all the information available to us about this topic and trim the options down to the very best. So, stick with us and learn all you can.
How to Save Money: 15 Practical and Proven Ways
Without further ado, let us get right into the thick of things. The following are seventeen ways you can save money and how you can get the best out of these ways:
1. Pay Off High-Interest Debt
Paying interest on debt can be a pain in the neck, but it can be less of a burden if you pay off the debts that come with high-interest rates.
The sooner you free yourself of the burden of huge interest rates, the better.
2. Track Your Spending
It is important to keep tabs on your cash flow every month. When you subtract your expenses from your income, you get a clearer view of your spending habits.
These days, you can get tons of budget apps on your Android or iOS device that will help you sort out your finances, so you won’t go off the rails.
3. Automate Your Savings
When you set up automatic transfers from your current account straight into your savings monthly, there will be tremendous accruing of the money without your manual involvement.
With this method, you can speed up the growing process of the money in your savings that you wish to use for things like vacations, down payments, and unseen emergencies. With the help of automated transfers, these dreams can come to life quicker.
With apps like Moka, this can be done seamlessly. After signing up for the app, you can start sending modest amounts from your current/checking account to a savings account that is separate. This helps to automate the transfer process.
4. Cut Down on Restaurant Spending
If eating out is burning a hole in your pocket, maybe it’s time to dust the ol’ chopping board and get the stove cracking. This is one of the important tips on how to save money.
We’re not saying you should altogether stop getting reservations for those dinners where they bring the medium-rare steak on a fancy platter, but cutting down on restaurant costs and cooking at home could really make a difference to your finances.
5. Cutdown Entertainment Costs and Subscriptions
Some of you are probably subscribed to three or four streaming services.
Hey, not judging (nothing wrong with watching Game of Thrones on the long bus trip to work and Stranger Things for a good scare right before bed). But, the quest for leisure can come at a price financially.
If you think you can do without an entertainment service, maybe you should ditch them and stick to the ones you really like.
This applies to all kinds of entertainment including concerts, museum tours, and the rest. Also, always look out for discounts and use them when you are eligible.
Further, if there are apps and services you are signed up for that you do not really need, it is best to cut them off. One way to do this is the undo the auto-renew option on the app.
In order to avoid being charged after a trial period, make sure you set reminders a few days before the free trial ends, so you can cancel just in time.
6. Cut Down Car Costs
Leveraging lower interest rates and auto loan refinancing could also be a life saver. Also, car insurance can assist you when trying to reduce costs as opposed to allowing the auto-renew of your present policy.
Current car maintenance expenses can be cut down by taking out heavy stuff from the trunk, reducing your driving time, and not accelerating rapidly (or too often).
You never know when the gas prices are going to skyrocket, but you can be a step ahead if you are conscious of how you use your gas.
With gasoline apps, penny-pinching is possible when you buy gas at a gas station.
7. Plan Your Grocery Shopping
If you are willing to do some preparation before you head out to buy groceries, it could really save a lot of time.
Sort out your priorities and make up your mind about what you really need to buy, so you won’t end up a victim of your own impulses.
Yeah, that brand new name-brand cereal with lots of fruits in it looks really tempting, but do you really need it?
Cashback credit cards can also be useful since some offer up to 6% in cashback. Just make sure you pay them what you owe them at the end of the month to avoid paying interest on the credit.
8. Plan Big Purchases
Saving can also be done by timing when you buy, cars, furniture, different appliances, and other commodities based on periods of annual sale.
There are different tech tools you can use to save money. For example, there are browser extensions that let you know when prices drop on platforms like Amazon (not to mention the ones that compare prices with alternative platforms and help you find coupon codes).
There are even that let you know if there are cheaper prices elsewhere when you are shopping in person and you scan a bar code. This is yet another valid way if you are curious about how to save money.
9. Apply Self-Imposed Purchase Delay Periods
You should definitely consider this method if how to save money is a priority of yours. This method essentially buys you time to think about what you intend to buy, its merits, and the potential consequences of buying it.
If you are using an app or online platform, you can put the object of desire in question in the virtual shopping cart.
If you have had time to think about the purchase, new reasoning may kick in and you may change your mind about it.
Also, filling a cart and leaving it prompts some retailers to give you coupon codes for free. The length of the delay period depends on you. It could be hours or even up to a month.
10. Try Online Shopping Freeze
To avoid buying things you don’t really need, you can put a restriction on yourself. How do I do this, you ask?
Well, you could start by not saving your shipping and billing information when using a service platform online or an app.
Discipline will also be needed, but you just have to keep reminding yourself of what really matters.
You could also turn off auto-billing if you’d rather process payments yourself instead of having apps billing you automatically.
11. Give Homemade & DIY Gifts
With clever gift ideas like books and essential household objects, you can save yourself some money. This means you might have to make or organize the gifts yourself, so get ready to put those hands to use.
If the gift is intimate and heartfelt enough, the person will not feel as though you brought them a useless or cheap gift.
In fact, it might even mean more to them than the flashy new Audi that their neighbor brought as a gift.
12. Reduce Electricity Bills
Even though small habit changes like turning the light bulbs off when you do not need them may sound irrelevant, they actually make a difference in the long run.
There are several ways you can save power in your house. These ways include blocking insulation leaks, power strip usage, thermostats (the smart types), using energy-saving electronics, and others.
So, do these little things so they can collectively make a sizable impact on your finances over time.
13. Switch Your Cell Phone Plan
Phone plan changing is a very valid way to save you some money on cell phone bills. Different plans come with different conditions and costs, of course.
Getting auto-pay and electronic statements may help you save as high as $4 to $10 monthly.
Also, opting out of insurance on your plan could save you up to $90 or even more per year.
14. Get a Cheaper Internet and Cable Bundle
A simple cable package could go a long way in case you are wondering how to save money. Cable and internet bundling could also save you even more if your service provider lets you.
Sure, you will miss some of your favorite shows, but it all comes down to priority at the end of the day. Better yet, you could cancel your cable subscription if you do not need it at all.
15. Save Every Spare Change
This simply means saving all that spare change in your purse or pocket. When you have saved all the bills and coins up to a fairly substantial amount, you can keep it in a savings account of yours.
Of course, this method of saving will not save you a whole lot, but it could make a difference in the long run when the money accrues. Ultimately, this is a valid option if you want to know how to save money.
Conclusion on How to Save Money
Tired of always running out of money? Then save your way out of the hole. Healthy spending habits go a long way when trying to save money. Always remember tomorrow when making financial decisions today.
When creating your budget, make sure your essential needs are at the forefront of your priorities.
Also, make sure you know the precise reasons for cash inflow and outflow (and their dates). Be meticulous and intentional about your money.
With the help of mobile and desktop apps, you can get a lot of assistance in terms of making and adhering to your budget. So, don’t be afraid to leverage technology.
FAQs on How to Save Money
How Can I Save Money Quickly?
A surefire way of making money fast is putting your money in a savings account with an interest rate that will yield high amounts. This way, you can sit back and relax while your money does all the work on your behalf
If you are curious about the best way to invest money in Canada, click on the link.
How Can I Make Money Quickly?
There are lots of ways you can keep the cash rolling in quickly, while some may take a little more time. Ultimately, the dependability and the safety of a money-making method should be important factors to consider.
Hi, I'm Adeola Adegoke. I am a licensed Insurance Broker in Manitoba, and I hold a master’s degree in Mathematical Sciences (with a major in Financial Modeling) from the African Institute for Mathematical Sciences (AIMS), Tanzania.
Also, I have a second master's degree in Statistics from the University of Regina, and I am currently pursuing my Ph.D. in Statistics at the University of Manitoba.
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