How to start saving money FAST
Do you wish you had more money at the end of each month? Even with a modest salary, there are 5 simple ways to save extra money: Learn how to regularly save $1,000 each month. Plus, a free printable to aid you in achieving your $1,000-a-month goal!
Let’s get right to the point: most individuals are terrible at saving money.
According to research, nearly 20% of working Americans claim to have no savings. Worse, according to this poll, 60% of people could not cover a $1,000 emergency with their savings.
Do you have any idea what this means?
It means that in the event of an emergency, these folks will have to borrow money to pay for it.
And you certainly don’t want to be in this situation. Above all, you don’t want to increase your financial burden.
That’s why I’ve compiled a list of some of the most effective money-saving strategies that you can use right now.
Finally, it is up to you to take personal responsibility for your finances. And whether you earn a six-figure salary or are living on a shoestring budget, you can make a difference by employing these strategies without ever feeling as if you are sacrificing the things that are most important to you.
SAVING MONEY TIPS: HOW TO SAVE $1,000 IN A MONTH
1. Don’t waste your money. You’re going around the mall with a pal when suddenly:
From the shop window, a very edgy black dress winks at you. You know that if you wear it, you’ll look like Kate Moss. You must go inside…
Come to a complete stop right there. Let’s take a step back. What went wrong? Why are you in the mall in the first place if you’re trying to save money? Second, don’t waste your money.
That is to say, if you want to save money, you should never click the “purchase now” button. Allow at least 24 hours for the item to cure. Allow yourself time to consider each item carefully. Cutting down on impulsive purchases is one of the most effective ways to cut costs.
So, before you buy anything, consider the following:
- Is it possible for me to live without this item?
- Is it truly possible for me to afford it?
- Will I actually put it to use?
This reveals if you truly desire or require it. You will be able to make better judgments about whether or not to spend money if you ask yourself these questions. If you’re still thinking about it the following day or a few days later and you can afford it, go ahead and buy it.
2. Calculate the true cost of each item.
I discovered several positive reasons for living with less on my path to financial independence. We end up trading our lives for items we possess every time we acquire anything. Or, to put it another way, as Henry David Thoreau phrased it,
The cost of anything is the quantity of life you give up in return. It’s time to stop valuing things in terms of money and start valuing them in terms of “how many hours will I have to work to pay for it?”
I now employ this technique on a regular basis. If I want to buy anything, I merely run a few simple calculations to determine if it’s worth the effort:
Calculate the true cost of each hour you put in at work. If you earn $40,000 per year and work 40 hours per week, your hourly wage is about $20.
Calculate the life cost of everything you buy now that you know the true worth of each working hour. Spending $20 on lunches on a daily basis? You have one hour left in your life. A pair of jeans for $80? 4 hours of your life are up for grabs.
We all have a certain amount of time on this earth, no matter how old we are. As a result, we must allocate our resources to the things that are most essential to us. We shouldn’t waste our time on things that won’t benefit us in the long run.
This is the entire premise of a fantastic book called Your Money Or Your Life, which I recently read. If you’re looking for a decent book to read, this is it. It will assist you in regaining control of your finances and allowing you to start enjoying a life rather than merely earning a livelihood.
3. Don’t be tempted by sales We’ve all done it.
We come across an amazing deal: a minimalist vegetable cutter that blends in well with the rest of our kitchen accessories. It’s difficult to say no.
But, let’s face it, let’s be honest. Will we ever put it to use? Big deals are staged to get us to purchase items we don’t require. Giving in frequently entails spending money on goods we don’t intend to use.
So, for each thing you’re tempted to purchase during a bargain, consider if you’d buy it at full price.
Consider the following:
- How many items did you buy on sale that you would gladly give away if you were granted a refund?
- Consider the $40 skirt you bought. How often did you put it on? Once?
- Or that nail polisher with the seal still intact?
Because, in truth, it’s almost as if you’re getting paid to save when you decide not to buy anything and instead put the difference in your savings account.
4. If you save it, make sure you transfer it.
Do you know what you should do first thing in the morning while sipping your coffee?
Check the balance of your savings account.
Simply transfer the equal amount you saved into a separate savings account whenever you save money by not purchasing something (CIT Bank has a great savings builder account that gives you up to 10x more than your average standard bank account). This may seem ridiculous, but it’s a wonderful method to ensure that the money you’re saving stays in your pocket (and avoid further temptations).
It’s a daunting habit to start, but once you get into it, you’ll find it quite motivating since you can see the immediate consequences of your efforts by watching your savings account balance grow every day.
Believe me when I say this: The more your savings account balance grows, the more motivated you will get to save — and the more likely you will be to continue with it.
5. Consider your ultimate aim.
Saving money is a big step toward more financial independence and stability. It can also become addicting.
But the most essential part of making sure you stick to it is deciding what you’ll do with the money thereafter.
It’s critical to understand this because:
If you have a clear objective in mind, you will be far more likely to achieve it. It will assist you in focusing on something good through challenging times.
You will be considerably more satisfied if you achieve that aim. Whatever your objective is, make sure you write it down and remind yourself why you are taking action in the first place.
Do you want to book a flight to your ideal vacation spot? Getting out of debt? Have you established an emergency fund? Are you looking for a unique gift for someone you care about?
Simply learn how to handle your money, and these suggestions will assist you in obtaining everything you desire.
