7 Best Ways to Save Money With No Regrets

tzanaia-tz-shilings

There’s a lot of advice out there on how to save money. Much of it is on this site. But out of all of the strategies, tips, and schemes, which are the most effective? Well, here you have it: the 7 best was to save money ever.

1. Pay Yourself First

The number one way to save money is, of course, to make sure you’re actually saving money, which is why it’s important to “pay yourself first”. This entails setting aside a given amount of your paycheck every month to go specifically into savings.

Before you do anything else, including paying bills, buying coffee, or going out to dinner, put that set amount of money into your savings account. It doesn’t have to be a lot. It could be just $50, but $50 adds up over time.

2. Set Goals

If you don’t set savings goals, you won’t have any idea of how well you’re doing on saving anything, so set goals first. Make them specific (I want to save x amount so I can spend it on x), they have to be measurable (did I save x amount?), they have to be achievable (I can save x amount without skimping on bills), they have to be relevant to you (I want to save x amount), and they have to be timely (I’ll save x amount in x number of months).

This is called the SMART system for creating goals, and it’s pretty much the easiest and best one out there. Make sure your money saving goals are specific, measurable, achievable, relevant to you, and timely, and you should have no trouble saving money.

3. Spend to Save

This means that you’re going to invest in good quality things so that you can avoid having to buy new things down the line. Examples of this would be buying good pots and pans so the finish won’t come off in six months, buying good quality clothing that you won’t have to buy again for several years, and buying well-made furniture that will last a lifetime.

This also extends to things like weatherstripping your house and making sure it’s well insulated to help you save on heating and utility costs, buying a router instead of renting one, and buying good quality food and perhaps

4. Pack Your Lunch

This is an extremely simple way to save money. Eating out all the time really adds up. If you simply brown bag it, you could be saving hundreds of dollars per year – not only on food costs but health costs, too. Packing your own lunch is a much healthier way to go because you can choose what’s in your lunchbox instead of going to a restaurant where there might not necessarily be healthy choices available.

5. Add It Up

A really good way to save money is to think of it in terms of yearly, rather than monthly or even daily amounts. This swings one of two directions. If you save $200 every month, you’ll have saved $2,400 that year. That’s enough to go on a vacation out of the country if you play your cards right.

The other way to think about it is to think about it in terms of what something’s costing you in the long run. For instance, buying something in bulk might seem like a lot upfront, but if you total the cost of buying that item in bulk every six months, instead of buying it in small quantities throughout the year, the savings quickly add up.

6. Quit Something

Sometimes it’s a good thing to quit. Sometimes there are habits that we have that are costing us money we don’t necessarily think about, and if we cut them out of our lives, we could save hundreds of thousands of dollars. Examples including drinking soda, drinking alcohol, smoking, and a coffee habit. All of these are extremely expensive habits that, if cut out of our lives, could save us lots of money (and help our health).

It doesn’t necessarily have to be a substance, though. If you quit driving and walk everywhere and take public transit, you’ll save thousands of dollars every year on insurance, gas, and maintenance for your vehicle.

7. Eliminate Your Debt

With debt comes interest. Interest means you’re losing more and more money every year in a black hole of despair. Do whatever you can to eliminate your debt as fast as you can, whether that means taking a second job or devoting your time and energy to throwing as much of your paycheck as you can at that debt pile. Once you’re debt free, you can breathe easier and finally start saving money again.

2 replies
  1. martin
    martin says:

    paying debts is one of the hardest yet the most effective way to ensure you save. without debts you are able to come up with a good savings plan. nice article indeed

Comments are closed.