Let’s be honest, saving money is one of those things that is easier to talk about than it is to actually do. But what if there were some simple strategies you could put into practice that would make saving money a much easier process?
Well, it turns out, there are.
In fact, for the rest of this guide, I’m going to cover 10 of the most effective strategies to save more money.
So, if you’re looking for ways to speed up your savings and achieve your financial goals as fast as possible, keep reading.
Let’s dive right in!
1. Hide Your Savings
You want to know why saving money is so hard? Well, it’s because there are just so many cool things you can buy with it! And when you’re staring at the price tag of something you want to purchase, all while knowing you have a pile of money sitting in the bank, it becomes that much harder.
To make things worse, most people keep their savings and their checking accounts at the same exact bank. So, every time they log into their bank account, they are confronted with a big, enticing pile of money that’s just sitting there waiting to be spent. It’s a really tough temptation to overcome.
That’s why, if you want to step up your money-saving game, you should open a savings account at a completely different bank, and put your savings there. This will keep your money much more out-of-sight, and therefore, keep you from spending it.
Oh, and if you’re going to do this, you might as well maximize your efforts by opening a savings account that earns a better interest rate than 0.1%. Seriously, you can do a lot better than an account that only earns a few measly cents every month.
In fact, if you’re interested in a high-quality savings account that earns a good interest rate, and won’t charge you any monthly maintenance fees, we recommend either the Axos High Yield Savings account, or the CIT Savings Builder. They’re both phenomenal savings accounts, and only take a few minutes to set up online.
2. Live On A Written Budget
I know that budgeting gets a kind of boring, tedious rap. But seriously, it is hands-down one of the easiest, and most effective strategies to save more money. And I’m not just talking about a few bucks here and there. I’m talking about big chunks of your income that are ripe for the saving.
To put it simply, a budget is a financial game plan to achieve your goals. And the better, more specific your plan is, the more likely you will be to achieve them.
Let me put it to you this way: before I started budgeting, I was broke, buried in debt, and barely making ends meet. I’m not lying when I tell you that there were some weeks when I had to restrict myself to one meal a day just to make my rent payments. (I’m not proud of that, but it’s the truth.) Fast forward a few years to where I am now, and budgeting has turned both my wife’s and my financial futures around.
We, now, don’t owe a penny of consumer debt. We have over 6 months of emergency savings just sitting in a savings account. And finally, we’re able to invest a large portion of our income every single month–all because of budgeting.
Oh, and here’s the best part: the longer you stick to a budget, the better your financial life will get, and the easier budgeting will become.
I can’t emphasize this enough, if you’re looking to implement some strategies to save more money, then living on a budget should be one of the first things you do.
Other Posts Related To Budgeting:
- How To Stick To Your Budget: 21 Simple Tips
- The #1 Key To A Successful Budget
- 15 Worst Excuses For Not Budgeting
- 10 Reasons Why Budgeting Is So Important
- 21 Simple Tips To Make Budgeting Easy
3. Get Out Of Debt (And Stop Borrowing Money)
If you want to maximize your ability to save, invest, and build wealth, then one of the most effective things you can do is stay away from consumer debt.
And if you’re already in debt (I’ve been there), then you should pay it all off as fast as you possibly can.
Consider this, if you are currently spending $500 on consumer debt payments every month, that’s $6,000 per year that you could otherwise save or invest. Now, here’s where the math gets a little more real. If you were to take that $500 every month and invest it in a mutual fund that earns an average of 10% interest each year, your contributions would grow to over $1 Million over the course of 30 years.
To quote Charles Conrad, “The poor pay interest, while the rich earn interest.”
Don’t let the burden of consumer debt hinder your efforts to save and invest your money.
Just pay it all off.
- 21 Tips To Pay Off Credit Card Debt FAST
- Save Money Or Pay Off Debt? (Here’s What We Did)
- How To Get Out Of Debt Fast (Even On A Low Income)
- The Dangers Of Debt: 13 Reasons You Should Avoid It At All Costs
4. Reduce Your Fixed Expenses
Now that you’ve hidden your savings in a separate account, started living on a written budget, and are working on getting out of debt, it’s time to start cutting some expenses. And of all the expenses you can cut, fixed expenses are the best place to start.
Since fixed expenses occur every single month, the more of them you cut, the more financial margin you will create. And creating more financial margin is the key to saving more money.
But what kind of fixed expenses should you look for?
Well, one of the best places to start is insurance.
You see, insurance is one of those bills that we tend to just pay without thinking. In fact, many people just have their insurance automatically pulled from their bank account. Whether it’s car insurance, home insurance, renters insurance, or any other kind of insurance, we tend to get in the habit of just paying it and moving on.
Unfortunately, that can end up costing you hundreds or even thousands of dollars each year.
That’s why we recommend shopping for new insurance at least once every couple years. I mean, if a few minutes of insurance shopping has the potential to save you that amount of money, why wouldn’t you?
We recommend starting with a tool like Liberty Mutual’s Free Online Quote Tool, or by using a rate comparison tool like Insurify. If the rates are comparable to what you’re currently paying, then at least you can be sure you aren’t paying too much. If not, then it might be time to make a switch to a new provider.
So, what other kinds of fixed expenses can you cut? Well, here is a list of a few more you should consider reducing in your monthly budget:
- Online Subscriptions
- Cell Phone Plan
5. Save Before You Spend
For most people, saving money is the last thing they do with their money at the end of each pay cycle. In other words, after paying all their bills, buying all their groceries, and spending money on anything else, they move the leftover money into savings.
The problem with this method is that the amount of money you save depends on how much money you decide to spend. So, if you decide to spend all your money, you don’t have any left over for savings.
That’s why, one of the most effective money saving strategies on this planet is to reverse that order and save before you spend.
What do I mean? Simple.
If you want to save more money, then decide how much of your paycheck you want to save, and put it into your savings account. Then just cut as many expenses as you need to cut from your budget in order to live within the remaining amount of money.
It might sound a little backwards, but this is how wealthy people handle their money. So, if you want to build wealth, you should do the same thing.
Other Posts About Saving Money:
- How To Make Saving Money A Habit: 10 Actionable Tips
- Where To Keep Your Money While Saving For A House
- How To Open A Bank Account Online (5 Easy Steps)
- Is A Savings Account An Asset?
- 5 Urgent Things To Do If You Have No Savings
6. Find A Cheaper Place To Live
Along the same lines as reducing your fixed expenses, one of the most effective strategies to save more money is to find a cheaper place to live.
I realize this one is a bit extreme, but this tip has the potential to save you hundreds or even thousands of dollars per month.
On the other hand, if you don’t like the idea of moving, you could find a couple roommates and split your monthly housing costs.
Either way, if you are looking for a truly effective saving strategy, reducing your housing costs (whether you pay rent or a mortgage) is a great way to go.
7. Automate Your Savings
If you are the kind of person that struggles to actually deposit money into your savings account, then you should consider automating the process. That way, you don’t have to worry about your emotions getting involved, or a shiny object tempting you to spend the money instead.
One of the best ways to automate your savings is to have a portion of your paycheck deposited into a retirement account. Now, I realize this falls under the category of investing, but it is one of the most effective ways to build wealth — and isn’t that the whole point of saving money.
Another great option is to have a portion of your direct deposit go directly into your savings account. This is a particularly effective strategy if you open a bank account at a different bank, because the money just drops into your bank account, and you don’t even see it happen.
Less temptation = more savings.
Finally, if you really want to increase your saving efforts, you could use an automated savings app like Acorns, which rounds up your monthly transactions and invests the money without you having to think about it.
8. Start A Side Hustle
This might be pretty obvious, but the more money you make, the greater your opportunity to save money.
So, if you have been thinking about starting some sort of side business or getting a second job, then now is the best time to start.
Whether you want to start a blog (my personal favorite), mow lawns in the summer, deliver pizzas, teach music lessons, or start freelancing, the more income you can generate, the faster you will be able to reach your savings goals.
I’ve said it before, and I’ll say it again, figuring out ways to earn more income is one of my favorite strategies for saving more money.
Related Posts About Side Hustles:
- 10 Side Hustles With Low Startup Costs (Less Than $100)
- 9 Lucrative Freelance Skills You Can ACTUALLY Learn Online
- 10 Best Ways To Diversify Your Income
- 7 Proven Ways To Create Multiple Streams Of Income
- How Much Does It Cost To Start (And Run) A Blog?
9. Sell Your Stuff
If you’re just looking for a temporary boost in your savings, then one of the best strategies you can implement is to sell your stuff.
And in this day and age, that’s about as easy as it gets. Just snap a photo of whatever it is you want to sell, post it on Craigslist or Facebook Marketplace, and wait for the offers to come rolling in.
This is a great way to earn some quick savings, and a very effective way to save a little extra money.
10. Pay Cash For Everything
If you’re the kind of person that likes to mix things up, and you really want to up your savings game, then the final strategy I’m going to recommend is to start paying cash for everything! And I mean everything!
Want to buy a tank of gas? Walk into the gas station and pay inside.
Need to buy groceries? Leave your debit card at home and bring an envelope full of money instead.
Want to buy a new pair of shoes on a whim? Oops, you can’t! You don’t have any cash with you. I guess you’ll have to save that money instead!
If you’re struggling to save as much money as you’d like, then you might just need to implement some different saving strategies.
From hiding your savings account at a completely different bank, to getting out of consumer debt, or even paying cash for every purchase, the more of these money-saving strategies you implement, the faster you will reach your savings goals.
So, go out there and start saving money!
Oh, and if you have any other money-saving strategies, be sure to let me know about them in the comments below. I love hearing about all the awesome techniques our readers use to boost their savings!
Until next time, happy saving!