4 Min Read
How do you save money for the life you want while living a life that's worth living today? Those who find the formula get to sample some of the fruits of their labor today while stocking away enough to feel secure tomorrow.
So, what are the best ways to save money?
Take a look at the savings tips that can change everything.
Why Is It Important to Save Money?
Planning for your future isn't something that anyone else can do for you. Becoming a saver is a gift that you give yourself. There are many reasons to start saving today! It will help you reach the finish line for both short-term and long-term goals. Here's some motivation:
• The laws of compounding interest are on your side. Money that you put away with interest today will earn more interest based on every extra day that it sits. It's tough to make up for lost time with interest.
• Savings give you freedom for things like big moves, exciting business investments, and life-changing trips without guilt when you reach 30, 40, 50, and beyond.
• Padding your retirement now can help you to retire years earlier.
• Living with an emergency fund that you know you can count on brings mental and financial freedom.
Learning to save money requires you to build a "savings" muscle. It takes discipline to divert a certain amount of each paycheck to savings. Some people never get into this habit. Making the decision to value your future enough to build up that savings pot now will make your life easier because you will grow accustomed to living on less than you make.
The 6 Best Ways to Save Money Fast
Take a look at foolproof ways to save money that you can start doing today.
1. Skip Your Favorite Lunch Spot
Yes, it can feel like you're being lectured whenever someone gives you the advice to start packing your own lunches instead of picking up lunch. However, there's a good reason why this is the most common piece of advice for saving money. A love of lunching out could stop you from a "millionaire" retirement.
Buying lunch out is one of those sneaky costs that might not seem like much at the moment, even though it's potentially stealing thousands of dollars from your budget every year.
Let's say you're spending $15 on lunch five days a week. That doesn't seem like a big deal, but what does the math say? Grabbing lunch out five times a week at $15 a pop costs $75. Next, repeat that for all 52 weeks of the year. You've now just dropped $3,900 on lunches for the year. You'll spend just shy of $20,000 on lunch over the course of five years. The worst part is that the $20,000 could have accrued interest if you put that $75 away at the end of every week instead. Yes, lunches out versus packed lunches could potentially prevent you from becoming a millionaire in retirement.
2. Get Clever With the Thermostat
If utilities come out of your pocket, strategizing your thermostat settings could save you hundreds to thousands every year. According to EnergySaver.gov, you can save as much as 10 percent annually on heating and cooling by simply turning your thermostat back by seven to 10 degrees for eight hours of the day.
There's an easy way to do this without becoming a full-time thermostat monitor. Do friends and family ever ask you what you want for holidays and birthdays? Ask for an inexpensive programmable thermostat this year.
3. Never Store Billing Information With Your Favorite Online Stores
This tip is focused on impulse control. Never check the box to save billing or shipping information when shopping online. This makes it too easy to splurge with a click the next time you fill your cart. The process of adding your credit card number and shipping address may give you that all-important reflection time needed before each new purchase.
4. Invest in a Good Gift-Making Tool and Hobby
Do you find that holidays always drain your budget? Overspending at the end of each year is a trap that many people fall into that sets them up for despair about finances going into the following year.
One creative way to avoid budget-draining holiday buying is to invest in a really neat gift-making tool and hobby that you enjoy. Consider something like a basic pottery wheel costing $100 to $200 that allows you to make homemade vases to give as gifts for life's occasions. You can also consider a good knitting set, an art set, or tabletop greenhouse for cultivating plants.
5. Do an Auto-Renew Audit
Paying for recurring subscriptions that you forgot about is like death by a thousand tiny paper cuts in your financial life. So many of us forget to unsubscribe from services or publications that we never actually use. You better believe those brands are holding on to your credit card information until you intervene. Take some time to look over your recent bills and monthly expenses to check for any subscriptions flying under the radar.
6. Reevaluate Your Auto Loan
Has it been a few years since you signed on for an auto loan? You may be able to refinance to cut your monthly loan payment. This is especially important if your credit is a lot better than it was when you signed on for the loan because you'll probably get a better interest rate that will let you pay less every month. That also means you're paying less overall for your car compared to your original loan. Highlight this tip if you're looking for the best way to save money fast.
This may feel like a short list of ways to save but there are many other easy ways to save that may be worth checking out including the best way to save money on groceries and best ways to save money when moving.
The Best Ways to Save Money Start With Accountability
Getting a pulse on your cash flow is the starting point for saving money. You can't plan for a better financial future if you're in a financial haze. Strip away the confusion about where your money is going by using an app that allows you to track, plan and set up your financial goals.
See how an app like Monorail can help you save money for the things you really want.
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