- 1 How to save money from expenses
- 2 Say goodbye to debt.
- 3 Give up Smoking
- 4 Round up your estimated grocery expenditures.
- 5 Keep savings in a high-yield savings account
- 6 Round-up transactions
- 7 If you buy it—use it!
- 8 Purchase only what you need
- 9 Spend to Save
- 10 10. Pay Yourself First
- 11 Conclusion
Sometimes the question about how to save money fast is very simple. This step-by-step guide can help you develop a easy and realistic strategy, so that you can save for all your short- and long-term goals.
How to save money from expenses
The first step to start saving money is figuring out how much you spend. Keep track of all your expenses—that means every coffee, household item and cash tip as well as regular monthly bills. Record your expenses however is easiest for you—a pencil and paper, a simple spreadsheet or a free online spending tracker or app. Once you have your data, organize the numbers by categories, such as gas, groceries and mortgage, and total each amount. Use your credit card and bank statements to make sure you’ve included everything.
Say goodbye to debt.
Monthly debt payments are the biggest money suck when it comes to saving. Debt robs you of your income! So, it’s time for you to get rid of that debt. The easiest way to pay off debt is with the debt snowball method. This is where you pay off your debts in order from smallest to largest. Sounds kind of intense, right? Don’t worry, it’s more about behavior change than numbers. Once your income is freed up, you can finally use it to make progress toward your savings goals.
Give up Smoking
No, it’s not simple to stop smoking, but if you smoke a pack and a half a day, you might save almost $3,000 a year if you gave it up. Join the club: the Centers for Disease Control reports that the percentage of Americans who smoke has dropped below 20% for the first time since at least the middle of the 1960s.
Round up your estimated grocery expenditures.
This is a fun little trick to play on yourself when you’re stumped for how to save money on groceries. While you’re walking around with your calculator, round up each item’s price. The $1.49 product becomes $2, that $7.75 item becomes $8—you get the idea. If you do this for everything in your cart, you’ll still know roughly what you’re spending, but you’ll be pleasantly surprised when you’re at the checkout counter and come in under budget every time.
Keep savings in a high-yield savings account
As you work toward your financial goals, make sure to put your accumulating funds in a high-yield online savings account to maximize your money. Some of the best online accounts pay interest rates that are higher than the ones at large traditional banks.
How to save money from accounts is an important tip that you don’t pay much attention. Some apps let you round-up your daily transactions to the nearest $1 or $5. The change then goes directly into your savings account.
For example, James buys a coffee before work each morning:
The coffee costs $4.20.
His account is debited $5.
80 cents goes straight into his online savings account.
After a year, James will save more than $200.
If you buy it—use it!
Finding strange fruits and veggies floating about at the back of your refrigerator is the worst. Even worse, those spoiled cucumbers and mushy peaches are dollar notes that are being thrown away. Ouch!
Make every effort to put what you purchase at the grocery store to good use. To assist you remember, post a list of your refrigerator’s food inventory on the door. Just don’t let the food go to waste, no matter what you do.
Purchase only what you need
We enjoy a bargain. Deals are always popular. But did you truly get a discount if you were duped into purchasing items you didn’t need? A product shouldn’t be purchased just because it is on sale or because you have a coupon. Bargain or no deal, you still spent more money than you intended to if it wasn’t on your scheduled shopping list.
Spend to Save
Since utility expenses seldom decrease over time, weatherize your house today before it’s too late. Call your utility provider and request an energy audit, or look for a licensed professional who can assess the energy efficiency of your entire home. From simple adjustments like sealing windows and doors to the installation of new insulation, siding, or ENERGY STAR high-efficiency appliances and goods, this may be done. Over time, you might save tens of thousands on utility expenditures…
10. Pay Yourself First
Set up an automatic transfer each payday from your checking account to your savings account. Don’t cheat yourself out of a sound long-term savings strategy, whether it’s $50 every two weeks or $500.
Knowing how to save money can take a lot of will power, sacrifice and focus. But once you get the hang of it, it becomes easier – and in the future, you’ll be thankful you started saving when you did.