Best Ways to Save Money
Saving money as a family is significantly more difficult than it was as a child who dropped mom and dad’s spare change into a piggy bank. It requires intentionality, a plan that is both feasible and motivational. In order to get the whole family excited about saving, communicate with them what you are saving for. Give them an end goal that is tangible and desirable. Financial advisors tell us we need enough money in our savings account to be able to live on for six months should you lose your job or become injured and not be able to work. Beyond that, the family could be saving for a new car, for a vacation, for a college education, or for a necessary medical procedure. Working together provides a sense of teamwork, accountability and motivation.
Budget to Save
Saving money is next to impossible without a budget. If you don’t know what you’re spending, you have no idea what you could be saving. When you make a budget, do so with savings in mind by making it a line item so that you put money aside each month. Although it sounds obvious… the only way to save money is to live below your means. Once you see how much money you NEED in order to maintain your standard of living, stick to that amount and put any additional funds into savings. For example, after evaluating your spending habits you discover that don’t need to spend as much on entertainment as you have been. Budget to spend only what is necessary and put the remainder into savings.
Reduce Spending
That is really the simplest means of saving money in general: to spend less. Here are some tips on how:
- Buy in bulk.
- Use coupons whenever you can.
- Plan a menu for the week, buy only the groceries necessary for those menu items, and eat in all week.
- Carpool or ride public transportation.
- Buy store brand items instead of name brands.
- Purchase used items at thrift stores or online.
- Do it yourself more often. Make gifts, do your own landscaping and housekeeping or reupholster furniture instead of buying new items.
Eliminate debt
When you sit down to analyze how you are spending your money, you will learn how much debt costs. Most people forget that by choosing to pay off purchases later, those purchases actually cost more. Interest is not free. With the exception of education or a home, only buy what you can pay for in cash. Doing so will save more money than you realize over time.