Saturday, 20 February 2021

10 Ways To Save More Money Right Now

Making the right money moves no matter how old you are is so important, and being responsible with our money can help alleviate a lot of hardships that involve money. So I think these are some good spending habits that we should all incorporate into our lives to save more money.

We're just going to jump right into it 

1. Budget

You know I was going to say this, of course, we have to budget in order to save and to even know how much money we have, how much money we need to spend. So here is how I budget, I only spend about 6% of my income on personal needs

  • Savings 35%
  • Give (church/family) 22%
  • Rent 20%
  • Retirement 10%
  • Bills 7%
  • Personal 6%

Everything else I have allocated to a specific place and let me show you what that looks like. Here's a little chart of my spending wheel and how I have allocated my spending 

In order to organize your finances, the first thing you need to do is figure out how much money you make every month. Some people may not be as consistent, so if I were you, I would look back at the past five or six months and I would get an average of about how much you make every single month. After you figure out how much money you make every month, then you need to figure out how much money needs to go to bills or expenses that are a must. 

Things that are a must are rent if you are renting, car payments if you have one, cell phone bill, electricity bill, or you pay someone every month something, then you need to take all of that out. And then figure out how much money do you have left after all of those needs are met, and I'm not talking about shopping type of money, but the things that you're really going for. Then from there, I actually make sure that I save as much as I possibly can. So this wheel right here can probably give you a good starting point 

And I find that percentages work for me because I don't make the same amount every month, so getting a percentage of my paychecks it's going to help me stay on track, but also, if I end up making more during certain months, then I'm not going to spend more, that's called lifestyle inflation

2. Eat Out Less And Cook More

You'd be surprised to see how much you can learn how to cook by googling your favorite food item and just type in the recipe right next to it and see what you can make 

But I will say that grocery shopping can get expensive if you're only buying things that you're gonna use once. For example, if I buy a whole bag of flour and then I'm only using it for one recipe, then I still have a lot of the bag left and I'm not going to use it. Another tip about grocery shopping is that fruits and vegetables are definitely much cheaper than meat. So, I like to buy a lot more vegetables and beef, for example, can actually cost a lot compared to chicken or turkey

In terms of eating out I eat out about three times a week but I try to just cook Monday through Friday and then I'll eat out on the weekends. Another tip is that you should make extra of whatever you're making and then you can freeze it in the freezer and that's also going to save you time and money

3. Buy After Holiday 

This is the perfect time to say this. Buy things after the holidays. For example, black Friday is the day after Thanksgiving and the day after Christmas sale is the day after Christmas, and things are significantly cheaper the day after a holiday. So even if that means you buy thanksgiving decorations the day after thanksgiving and you save them for the year after, that's fine. But also remember that if an item is $100 and it says 50% off, you didn't really save $50 because you still spent $50. You are not gaining $50 from that experience, you just spent money on something that is cheaper. So unless you know you're going to need it and you planned on buying it full price regardless, then you shouldn't buy it.

4. Price Check

Always price check. Check on Amazon, check on target, check on Walmart, usually if I want to buy something I'll google search it first. For example, a hydro flask

I recently bought this new hydro flask but I checked all of these different websites first, to make sure that I'm getting the best deal

Because I don't want to pay for something full price if I can get the same exact thing at a discount

5. Monthly Subscriptions

Check how many subscriptions you have. You'd be surprised at how quickly $1.99 per month, and $4.99 per month, and $9.99 per month, how much they add up. So when you are budgeting that should also be included in what is being taken out of your bank account every single month. So whether that's Netflix, Hulu, and apple app. All of those things add up every single month, and you should figure out how much money are you really spending on subscriptions.

6. Buy Things Used

Buy things used when appropriate and accessible. So if you're able to find something used and it's good quality, then you should get it. And I know a lot of people like to go thrift store shopping, I find that I get a huge headache when I go to thrift stores because I cannot find anything. So the two apps that I often use are Poshmark and Mercari. But I actually prefer Mercari over Poshmark because Mercari only takes 10% from the sellers, while Poshmark takes 20%

So Mercari sellers tend to price things a little more reasonably because Mercari's only taking 10% of it

7. Commit To Being Debt Free

Commit to reducing your debt as fast as you can so that you can save more. So whatever you are paying towards debt eventually when you pay it off, you can apply that into your savings, it doesn't mean you should not spend more, but stick it back into your savings

A quick tip on debt is that it's actually better to pay off your smallest debts first as quickly as you can and then you're going to stack as quickly as you can. That is going to help your mindset, it's going to remind you that you can do this that you can be debt-free, so start off with your smallest debt first, pay it off as quickly as you can, and then go from there.

8. Think In Cash 

Think in terms of cash and not your credit card limit. Think what's your cash limit and not your credit card limit. Don't rely on your credit card, rely on your cash. That does not mean you can't use your credit card because I use my credit cards often so that I can accumulate points, but I pay off my credit card the same exact day. So if I go get gas and I use my credit card then when I get home I pay it off right away. This ensures that I don't create a cycle of debt or that I owe anyone anything and it gets taken out of my bank account right away so that I know how much cash I really have

So, I use my credit cards only because of the points that I get and the travel benefits that I get, versus I want to pay for something I can't afford. So get out of that mindset of paying for things that you cannot afford with cash and only think about your cash limit 

9. Invest In The Stock Market

I know for a lot of people that may be scary, you might not understand what that even looks like, and honestly, for me, I don't think I could have invested in the stock market any earlier than now. There's a lot of resources when it comes to the stock market. But I do not recommend people investing in the stock market if you are drowning in debt and you are barely making it because you want to make sure you have a safety net, and not completely rely on the stock market as well.

The stock market is a way for your money to work a little harder for you rather than just sitting there, but it is also based on historical data. What is this company about, where are they going, what do they stand for, and historically, how have they been doing in the stock market. That's something we should look at, it should be run by data and not just based on hype, and not just based on opinions. But true data studies.

I do see the importance of it in terms of long-term investments where we are going to keep our money there for a long time and see it grow hopefully. So when you think about it that way, like okay, I'm just putting my money somewhere that it can hopefully potentially grow, and if not, that's okay. But only put an amount you're comfortable with

10. Delay Gratification 

The best way to save money is to not spend it so much, which means, delay your gratification. Delay the need to want things right away and to have it today, to have it now. If you don't need it, you don't need to get it. And one of the biggest factors in this is to wait a little bit. Allow yourself to settle, allow the hype to settle, and see is it still important to you? Is it still something that you think is going to improve your life, help your life in some way. If so, if you've allowed some time to pass then you can get it. But don't do it based on hype, don't do it based on, no, I really want this new thing. Because sometimes we really don't need it. And a lot of new things, quickly become old things.

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