Building wealth is a life-long journey. Some have taken it up a notch and fast-tracked their wealth creation by hustling really hard, making more money than they usually do. While others took it the slower route, by saving money and managing their finances properly.
While saving money isn’t rocket science, many of us have a hard time making it a cornerstone of our finances. So, for us to dip into the world of saving money, let’s learn a couple of ways for you to save more today!
TLDR; Here’s a video for your convenience!
Some Numbers About Savings
According to a survey by OnePoll on behalf of Chase, a staggering 1 out of 4 Americans do not have enough money to cover more than two months of expenses. That amount could vary depending on where you are living in the United States. But for the sake of simplicity, the average in California if you’re living decently is around $2000 to $3000 a month. So, most don’t have $4000 to $6000 in savings tucked away in case of emergencies.
On the other hand, in the Philippines, a Financial Inclusion Survey done by the Bangko Sentral ng Pilipinas (BSP) in 2019, stated that 53% of the total adult population had some form of savings. While it was not mentioned in the 2019 report, in the 2017 report, 62% of all deposit account holders in the country only keep P5,000 and below in their bank balances. According to my mom, that’s simply the maintaining balance for a typical Filipino savings account!
Savings has become a popular topic recently due to the pandemic. More people are starting to look into their finances to stay afloat, so learning different ways to save more money will do you wonders.
9 Ways to Save More Money Today!
- Automate your savings FIRST!
One problem that people have with saving money is that saving isn’t the first thing in their mind when they get their paychecks. They set aside money for their expenses first, then whatever is left is considered savings.
That doesn’t work because if you’re left to work with the “leftover” money, you’re not as conscious of the matter as you should be. You don’t think about savings at all when it is the last thing on your mind.
Do it the other way instead. Set aside money for your savings, then think about your expenses and adjust your expenses to accommodate your savings goal. In addition to that, automate your savings!
Have your company automatically deposit your paycheck into your savings account and the rest into your checking account. Or if you’re working for yourself, create an automatic transfer to your savings account at a scheduled date. That way, your savings is already secured.
- Cut down on food expenses.
Food is a basic need. But too much of it can hurt your health and even your wallet. Look at how much you are spending on food. That includes your monthly groceries, eating out and food deliveries.
If you can take some items out when you’re at the grocery, do it. You probably don’t need 10 kinds of junk food in your pantry. If you eat out a lot, lessen it. You’re better off staying at home, especially with the pandemic around. If you order in food, limit that too. Having food delivered to your home can be fun and convenient, but you won’t be having fun when there’s little left on your bank.
- Switch services or negotiate your bills.
With so much time on your hands right now, go online and look for service providers that offer lower rates for the services you use. These could be your car or health insurance, or phone bill.
If you don’t feel like switching providers, negotiate your bill! It doesn’t take long to have a conversation with your company’s representative and see what they can reduce in your next month’s bill.
- Cancel or share your subscriptions.
Subscriptions can be a pain if not managed properly. A lot of services that you’re subscribed to might not have been used for a while now, yet you are still paying for them. Look into all subscriptions you have that you don’t use.
If you don’t feel like cancelling, share the cost with your family or friends. That way you can all enjoy the subscriptions you love while also enjoying lower monthly costs.
- Avoid unnecessary travel.
You can do so many things to enjoy your time at home. Travelling for unnecessary purposes can add into your transportation expenses every month because of gas and the need for maintenance.
But, if you really need to travel for work, then go for it. If your destination is close, why not use a bicycle or walk to get there. Not only are you cutting down on your transportation costs, but also keeping yourself in healthy shape.
- Do things on your own.
I really like how the internet has changed things for us. A guy like me can now learn how to cut his own hair by watching a video of somebody from across the globe do it. Now, I rarely go out to a barber shop and get my hair done. Of course, I still go there when the need comes, but my visits are so rare that I’ve saved a lot since then.
I did this in college and brought a home barber kit with me. For the entire 3 years I went to college in San Diego, I’ve only went to Great Clips 3 times because I had done my own haircuts and asked my roommates for help when I needed it.
Services you can do on your own include manicure and pedicures, your gardening, babysitting, or walking the dog.
- Save in a High-Yield Savings Account.
I’ve been talking a lot about high-yield savings account recently because I like the idea of having my money grow passively. Although HYSAs aren’t the best ways to grow your money, it surely helps with growing your savings without too much work.
High-Yield Savings Accounts provide 5 to 10 times more in interest rates than traditional savings accounts. So ask your bank if they offer one or look online for online banks that offer one.
- Use rebates, cashbacks or rewards cards.
I like rebates and rewards cards. I don’t have a lot of them, but I like being rewarded money for spending money. (wuut??)
Think about it. If you’re going to spend money anyway, why not get rewarded in return too?
This is the main reason why I use a credit card with cashback (Discover It, my first credit card), or use my parents’ rewards cards when doing groceries. It gives me money back for every purchase I make, saving me money as a result.
- Make more money!
Cutting expenses can only get you so far. Adding this here is an obvious one already. If you wanna save more money, then try to make more money. There are a lot of ways to make more money online or offline. You just have to do some research and find what works best for you.
One thing to keep in mind though. If you are making more money, do not fall into lifestyle inflation. This is when your expenses increase as your income increases. People who manage their finances well know that if you want to save more money and build wealth at the same time, you have to keep your expenses low no matter what.
And there you go! 9 ways to save you more money in today’s environment. To be honest, this doesn’t only apply to today but also in the years to come.
There are a lot of ways to save more money, but these 9 ways can help you jumpstart your savings habit, and slowly pave your way to building your wealth!