3 Quick Tips To Save Money That Actually Work
All of us are looking for tips to save money fast because eventually, money saved is money earned and who doesn’t want to earn more.
The only thing I’ve found most to be working in our rut to save money fast is spend less than you earn. I know it couldn’t get simpler than that. But let’s agree some things are simpler said than done.
All the tips about saving money faster comes down to giving up on your leisurely activities or even your favourite everyday coffee. But it doesn’t have to be like that. There’s no use of saving money by missing out on things which make your day. We have to be cautious on our expenses certainly but it doesn’t mean we should be leaving out on our most favourite things.
This CEO approach by Ramit Sethi from his amazing blog ‘I will reach you to be rich’ has helped a lot of people on cutting down their expenses and save more money. His ideas on how to save money fast are brilliant and innovative. So let’s get started.
The CEO Approach of Saving Money
C- Cut cost
E- Earn more
O- Optimise spending
You just have to focus on these three things and once you get a hold of these, you won’t have to keep looking for tips on how to save money. Once you master the way of managing your finances, you’ll no longer have to worry about it.
Conventional ways usually focused on cutting down costs but now things have changed. We focus more on optimising our expenditures rather than giving up everything at once.
Money saving Tips #1- Cut Costs
Now by cutting costs, we don’t mean you just go cold turkey on things you really love and things that make your day. That’s just too harsh and we don’t want to feel like this guy.
We would first look for things we don’t really need but are paying for them anyway. Do the following things if you want to cut down your expenses.
1. Set goals
You have to set a goal on why do you want to save money in the first place. Having a clear cut goal in mind when you are trying to achieve something is crucial.
Your goals might fall into one of the categories like you’re saving money because you want to achieve early retirement or it could be something in near future like saving money to buy a birthday dress.
Whatever be the timeline of your goal, just write it down somewhere. Scientific studies have proven that you are more aligned to achieve something when you write it down.
So pick up a diary and write your goal down.
2. Use the ‘Envelope Method’
As the name suggests, you have to designate every envelope for a specific activity. It doesn’t necessarily mean you need to have physical envelopes. You could do that in your phones too. There are several apps that help you track your expenses.
Let’s suppose you have an envelope for movies. You have a pre decided amount of money to be going in that particular envelope. So once you use up all that money, you’re more likely to stop your expenses on movies for that month. This would give you a really good control on your money.
This envelope method also helps us to track down our expenses and when we feel that we don’t need certain envelope, we end up saving more money. There is also a similar strategy that was originally made for entrepreneurs. It’s just a strategy of making more profit from every sale.
Another example could be on how to save money on groceries. Many times while grocery shopping, we end up buying things we don’t need and they rot eventually. So dedicating a certain amount of money on groceries would help you save a lot, believe me.
3. Automate your finances
This one helps save a lot of time and even money. When we start automating our expenses, we are obliged to spend only a limited amount to a particular activity. You won’t even have to worry about pending bills etc.
Just pay your bills on tha same date every month to make it more convenient.
Automate your checking account so it pays into your Roth IRA, savings accounts, credit card payments, and any miscellaneous bills.
Money saving tips #2- Earn more
Earning more should be next on your list after cutting down expenses. I know that’s way more difficult but there’s also a limit to how much you can cut costs. You won’t stop eating in order to reduce your expenses right. Below are some ways of earning more money.
1. Start side hustles
These days even teenagers are freelancing. People are becoming so money-savvy, it’s really inspiring. There are many sites which pay you just for doing surveys which take like 10 minutes of your time.
There are other freelancing sites like Fiverr which are good but now it has become really tough to get clients there because even though your skills are showcasing to the whole world but then the whole world is also competing for the same clients. These are top 5 ways of earning through side gigs.
You could definitely try on these but keep in mind that you do what you love doing while looking for side hustles. You already have a job. You don’t want another job that you have to cry about.
Any business only works if it’s adding something to someone’s life. It could be adding entertainment or providing solutions to their problems. Focus on how can you make someone’s life easier. Then you would actually have people coming to you for help.
If you love cooking, you could make videos for YouTube every weekend when you prepare a cuisine. You could tell your special ingredients or special skills that add a little mix to the other same old recipes.
Basically, just do something on the side which makes you happy.
2. Ask for a raise
I know it’s pretty obvious but you will have to do it. Just thinking that you might get a promotion next month wouldn’t help it. You’ll have to work for it and believe in your hardwork that you deserve a raise.
You would obviously be told that they don’t have enough budget or their expenses suddenly are touching sky. But that’s if not entirely but kind of a lie. Here are some brilliant ways where you can influence people to agree with you.
Learning about human behavior would help you a lot, especially when you have your own business but otherwise too. One who can understand human mind go miles. Just remember these tips to save money work only if you sincerely execute them.
Money saving tips #3- Optimise spending
Cutting down costs, earning more and this, optimising your expenses, if all done together would give you such amazing results.
1. Negotiate your bills
This means keeping a check on your bank statements. This would help you avoid expenses which are not absolutely necessary. There are many ways where you can negotiate your bills. For example, if your wifi plan at home is of greater cost even when you are in office for more than 12 hours a day, what’s the point of going for an expensive plan.
Infact, you could also call these companies and ask to negotiate your plan and let you guve certain coupons or discounts. You just have to find your way around it.
2. Cancel unnecessary subscriptions
You probably wouldn’t have noticed but a huge amount of your income goes in these subscriptions. Sometimes months go by and you don’t even use these but are paying for it every month. So sit down and write all the things you have subscribed for like Netflix, itunes etc.
Now when you can easily rent a movie at a much lower cost and according to your own schedule or free time, why would you be paying for it every month.
This way, you’d be conscious of what you are spending on your recreational activities.
So this was all about tips and the ideas on how to save money. If something has helped you in doing so, tell us in the comments below. We’d love to hear your story!