Pretty much everyone is struggling to save money these days especially as prices go up and salaries remain stagnant. The cost of renting or owning property, gas, groceries, commuting, everything has been going up in my city and I have constantly had to find creative ways of saving money. With a looming recession it is now more important than ever to save money because recessions come with layoffs which are especially horrible if you haven’t saved.
Most people look so put together but if you were to ask them about their finances you would be surprised at how similar our problems are. There are all kinds of ways to save money. In the list below you will find the most practical and reasonable ways that you can save money.
You can breath in a sigh of relief because you came to the right place if you are looking for ways to save money.
Table of Contents
How to Save Money
Stop Eating Out
In general it is always a good idea to avoid going out often to eat. It’s better to make your own meals at home because you will always save money this way. If you want to save money reduce the number of times you go out to have dinner. You don’t have to stop eating out altogether just make an effort to cut back on what you spend eating out.
Dinner can get expensive especially when you start consuming alcohol. A few drinks in, with an appetizer and entree for two people you could easily spend $200 in one seating. If you are on a tight budget this is money that could go a long way to fill in the gaps in your budget. If you start tracking how much you spend on just dinner you will be stunned by how much money you could save if you cut back.
Another way to save money is to stop buying lunch. Start bringing lunch to work. On average if lunch costs $10 a day that’s $50 a week. You could save $200 or more a month just by bringing leftovers. If you buy groceries every week you can also start planning your meals out to get ahead of the week. This way you know exactly what you’ll eat every night and the leftovers you’ll have for lunch.
One action item I have for you is to avoid eating out most weekends or weeknights. Maybe do one to two weekends a month and cut back as you become more disciplined and the incentive to save money increases.
Also start meal prepping where you plan exactly what you’ll buy at the grocery store and how much you’ll spend. Cook your meals over the weekend if cooking every night is too much for you. Track how much you spend and how much you save by not eating out.
Here is 7-DAY KETO MEAL PLAN WITH RECIPES to start you off.
Cancel Cable
You can save money by canceling cable and finding other options for television entertainment. For many people this is daunting. What if I get bored? Will there be enough options to watch if I cancel cable? Guess what, you won’t get bored. With Netflix, Prime, Hulu just to name a few your entertainment choices are endless. You do not need to be paying $100 plus a month for cable. There are millions of people now who have ditched cable and opted for other providers and saved thousands of dollars.
I have Hulu and Prime right now and I have so many options in terms of things to watch. I hardly notice that I don’t have cable anymore. My cable bill used to be $150 per month. With Prime I pay about $120 per year. I now save $1,680 by switching to Prime. Hulu also offers a trial period which is great because you can test out if it will be a good fit before you cancel cable.
Find things to do outside and be more present. It’s a great way to stay fit and be more involved in your community and family than seating on the couch all day. An additional bonus is that it’s free. Most parks are free and you can find tons of things to do outside that are free.
Commute to Work
Driving to work verses commuting in to work can be expensive and it is one of the bigger expenses that most people who work in big cities have. If you add the cost of parking it will always be more expensive than commuting so if you have the option to commute then use it. Do a comparison of what your expense would be if you commuted and stopped driving.
Commuting saves on gas and maintenance of the car in the long run. The stress involved with driving is just something I couldn’t do everyday. I’d be one angry person. Driving in to work everyday will turn anyone into a road raged angry person really fast. It also takes longer to drive than to commute on the train because traffic can get crazy. On top of saving money you can also get back some of your time by commuting.
When you commute you eliminate the cost of parking. Also there is lower wear and tear on your vehicle. Find out the options that you have for commuting if possible.
I pay about $340 per month for my monthly train pass. My company pays $130 of this which is a benefit they provide to commuters so my total cost is $210. I have free parking because I park on the street next to the train station. If I drove in parking alone is about $400 per month in the city. I estimate that gas would be about $100 a week and I would need to get maintenance more frequently. This would be about $800 verses $210 I spend on commuting. This is a no brainer.
Stop Buying Things You Don’t Need
This has been a life lesson for me. To be able to say, ‘No I don’t need that’ or asking myself why I’m really buying something has been critical in saving money. If it’s a trendy thing or you are attempting to impress people on social media remember that there is no return on investment for that. So, leave it. It takes some discipline but in the end you will save a lot of money if you stop buying things that you don’t need.
One trick that you can use to avoid spending money is to wait 24 hours before you commit to buying something. If you manage to talk yourself out of it then you really don’t need it. Talk to a friend or spouse if what you want to buy is really expensive. Sometimes getting a second opinion can show you that you don’t need something you thought you couldn’t live with.
“People buy things they don’t need, with money they don’t have, to impress people they don’t like.”
Clive Hamilton
Lately I have been asking myself if something is really worth it. Is it worth the work I put in to get the money to pay for it. If you get paid $20 an hour for instance and you want to buy a $500 bag. That’s 25 hours worth of work that you did. Is it really worth it?
Live Within Your Means
This is critical. To save money especially when things are tough you have to live within your means or well below your means. If you need something, then shop within your price range. Whether it’s a car, a house, phone even clothing stores, shop where your money does the most for you!
Never struggle to pay for something that you voluntarily chose to buy. Do you need the latest trend? Probably not. Do you need designer clothes to look nice? Probably not. Find bargains and feel good about yourself as you save more money. Living within your means implies that you budget for everything you spend your money. You should track your spending and ensure that at the end of every cycle you have money saved.
The goal should always to stay in the green which means that you don’t spend money you haven’t earned. Do not get into debt to maintain a lifestyle that you cannot afford. If you live within your means you will find ways to save money most of the time. If you are frugal you plan to save actively. Here is guide on how to create a budget.
Get a Weekend Job/ Side Hustle
This could be driving Uber, Lyft, restaurant work, event work basically anything that earns you extra money that you can save towards something. Additionally when you have to work during what should be resting time you will have more incentive to save those coins. These ride shares offer sign up bonuses for drivers that are as much as $500!
Currently I blog as a side hustle and there is money in it if you do it well. There are millions of bloggers who blog full time or part time and they make really good money on the side. If you want to start blogging I wrote a guide on how to start a profitable blog. If you are a creative person you can find ways to work from home and save the money that you earn to tie up the loose ends of your budget.
Here I have a list of ways to work from home and make money which you can save or use towards other financial goals. Always remember that if you have a skill that you can teach someone that’s something that earn you money. Either sell your skills as a service or create a product that you can sell. Any extra income that you make can be put in your savings bucket.
Shop for a Better Phone Plan to Save Money
We get stuck in cell phone plans that are costing us so much more than we should be paying. Shop around and compare to see if you can save money with deals that are constantly on offer. I’ve talked to some of my friends and cringed at what I was paying for my phone. I called the company and was able to get a cheaper deal which meant I didn’t have to change companies so you can explore this option as well.
Cancel Your Gym Membership to Save Money
For some people this is a hard bargain. On average less than 30% of people who have a gym membership use it. So, what’s keeping you there? If you really need to work out you can run or jog in your neighborhood, purchase an online workout program that you can reuse for a one time payment. Alternatively shop for a cheaper gym membership, you don’t have to be part of the best gym to get a good workout.
Save Money and Buy a More Affordable Car
If you already have an expensive car that you are paying for that you secretly hate because it’s a huge dent on your monthly budget then maybe it’s time to sell it and buy something more within your budget. This will lead to savings that could be astronomical. A luxury car could be anywhere from $500 – $700 a month while a more affordable car could be $300. That’s a possible $200 – $400 saving per month!
Stop Using Credit Cards for Day to Day Things
There is an incentive to use credit cards to get rewards but remember there’s a caveat. You are using money you don’t own to maintain your lifestyle. That is a red flag for debt that could run out of control. If you can avoid them don’t use them. I’ve seen people get trapped in high credit card balances that could ruin your credit score which is important if you are trying to buy a home, car and big ticket things like that!
Thinking of making extra money. Here are 7 ways that will make you more money.
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