It is easy to talk about wanting to save money, but when you look at what some people buy, it is no wonder they cannot build a bank account. Saving money is not difficult for most people, but it begins with learning to say no to some purchases.
When saving money is not your goal, but having things is, you will never actually save much. Changing this mental attitude is necessary—and you will learn to live a less expensive lifestyle. Here are some things you can live without if you are serious about saving money, along with some money-saving tips.
A Big House
Buying a bigger house than you need is wasting money. It will consume much of your income because a house always has taxes and repairs. Buy one you can afford and put money in the bank each month without having to spend all your time working to pay for it. Enjoy life more with a less expensive model.A Fancy Car
One of the easy ways to save money is to stay away from fancy cars. Cars only depreciate, which means you will never get out of it what you put into it—a poor investment. Many millionaires drive older model cars because it lets them invest more money in something with better returns. The billionaire Warren Buffet, for instance, drives a 2014 Cadillac XTS, according to Finance.Yahoo, and even looks for discounts—such as vehicles with damage from hail.Create a Workable Budget
A lot of times, people buy things that they end up hardly using. It does not make sense. Many people have discovered that living a simpler life—one with fewer things—is often more enjoyable.You can avoid buying frenzies by making a budget and sticking to it. A budget is an essential tool to help you save money. In fact, it may be the best way to save money.
Track all your spending for about two months to see where your money is going. Equifax suggests “trading down” on some of your expenses. Instead of completely stopping your nights out, for example, seek to reduce the cost from $200 each time to $100—or less—and put the balance in savings.
Dining Out
Along with everything else, eating out has become more expensive—and often unhealthy. Instead of eating out, you can save money by eating more often at home. The average family in America spends about $3,000 a year on eating out. Add the cost of buying fancy coffees and sodas while at work, and you are spending even more.MoneyUnder30 says you will probably spend about $13 on average per meal when eating at a restaurant. Eating at home will cost $4 per meal if you fix it yourself. Even if you reduced eating out three meals a week, you could save more than $900 yearly. Making your own coffee at home and taking it to work could save you about $40 per week if your coffee costs about $2 each.
Save Money on Groceries
You can also save money on groceries when you go to the store by planning your meals. Only buy what is on your list while at the store. It is easier to stick to your budget if you are not hungry when you go to the store. You might also use coupons and buy items that are on sale. Carrying only cash with you when you go, instead of using debit or credit cards, will help prevent impulse buying.Using cash-back credit cards can also help you cut expenses if you get cash back. Some cards offer as much as 5 percent, but using them is only good if you pay off the bill in full each month.
Buy Major Purchases Only on Sale
Sooner or later, you will find that almost anything you want will be on sale somewhere. When you want to buy something costly, watch the sale papers and online ads to get the best deal. NerdWallet mentions two browser extensions that can help you find those special deals: Carmelizer (for price drops on Amazon) and Honey (gives you coupon codes and seeks out better prices elsewhere).Think About Purchases Before Buying
Giving yourself time to think about purchases before buying can also help you save money. Waiting a couple of days—or a week or longer—before dishing out your hard-earned money may cause you to change your mind about it.Refinance Loans
If you can get a better interest rate on any of your existing loans, such as a car loan, you could save more money that way. You can reduce credit card debt by transferring it to a new balance transfer credit card. These cards may give you 15–18 months of zero interest on any amount transferred to them.Start an Emergency Fund
Having some cash available for emergencies can help you save more money because it can prevent putting it on a credit card or getting a loan. It lets you avoid having to pay interest.Set Aside Money in a Savings Plan
Instead of seeing how much money you have left at the end of a week for savings, add savings to your budget. Set an amount you want to save each week and have it automatically withdrawn from your account and put into a savings account.Buy Used When You Can
There are stores around where you can find good products, such as furniture, at a discount because they are pre-owned. Huntingdon mentions that you can often find good deals by shopping at yard sales, thrift stores, and consignment stores. Look at these stores before buying more expensive items.Go to Free Local Attractions
Many local attractions cost. You can still go out with the family and have fun by going to free ones. Free days are often available on certain days of the week or special days per month. Bankrate mentions that libraries often have passes to some zoos or museums—but they may be limited.Most people find that they can save some money when following these money saving tips. A little determination to reduce expenses and consistency can enable you to start building a bank account that you will be glad to have.
The Epoch Times Copyright © 2022 The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
