How to Save Money Fast
If you’re reading this article, chances are you need a little help to save money and increase your cash flow. Many people struggle with budgeting and making sure adequate money is in their accounts at the end of each month.
Want to learn how to save money fast? Keeping reading.
What are 5 tips for saving money?
We all want more money in our bank accounts. But how can we do that? Here are five tips to save money fast.
- Cancel unneeded subscription services
- Do you pay for random subscription services that you no longer need? Think phone storage, music streaming, tv streaming, gym membership, and more.
- Consider splitting the costs with a roommate or family member to help save you both some money or cancel altogether.
- Cut your grocery bill down by buying generic
- Buying generic food items and home cleaning products can be a great way to save a ton of money at the store without significant changes to your habits.
- Check for online coupon codes
- Before you click purchase, consider doing a quick internet search to see if you can find any store coupons. This can save you tons of money depending on what you are purchasing.
- Have a garage sale or sell items online
- Sell everything you don’t need for a little extra cash. This can be a great way to declutter your home and make money in the process.
- Utilize your local library
- If you’re an avid reader, you probably realize books can be expensive! Joining and supporting your local library can be a great way to cut down on your spending.
Why is saving money so hard?
With inflation hitting a four-decade high, saving your hard-earned money in the current economy is more challenging than ever. It can feel like a never-ending cycle and very discouraging.
Here are some identified barriers to why you may not be reaching your savings goals.
The number 1 step to getting spending under control to save money is to create a monthly budget. It does not have to be fancy. You can get a notebook or scrap paper and write down all your monthly expenses and income.
Get a clear understanding of where you are financially. This means checking your current balances down to the penny on all credit cards, student loans, car payments, and more.
Make sure to review your checking account to see where your money is actually going and get a good grasp on your habits and financial situation.
Create a realistic budget. Do not automatically give yourself a budget of $50/week for groceries if you usually spend $300/week and are a family of 6. Be realistic with yourself and work towards cutting back once you’ve established realistic budgets for categories.
Live beyond your means
This may seem like a no-brainer, but many people live beyond their means, which can happen in any income bracket.
According to reports, 72% of those who make less than $50,000 per year live paycheck-to-paycheck, and nearly 40% of those who make over $100,000 per year live paycheck-to-paycheck.
Millennials are the largest group living paycheck-to-paycheck at 77%, especially those adults 33 to 42 years old. Experts say this is primarily due to being bookended by two recessions and student loan debt.
Research also shows that having children corresponds with a greater likelihood of living paycheck-to-paycheck.
No savings account or emergency fund
Having a savings account and emergency fund can prevent you from defaulting on loans or affecting your credit report when an emergency comes up.
Many people find it useful to have separate savings account for their emergency fund and general savings.
Having these accounts also allows you to save for things that are important to you, which might be a down payment on a house or your dream vacation.
Too much credit card debt
The average American has four credit cards, which can quickly get out of control. The average American also has $5,769 in credit card debt in 2022 Q1, which is 3% higher than last year.
Make a game plan to knock down your credit card debt and pledge not to put any more expenses on your credit cards until you can get control over them.
Too many payments
77% of Americans have some type of debt. What can you sell? Do you have an RV, motorcycle, or other larger items you do not absolutely need? You will need to get super critical over what you allow to keep as a payment to save money. Anything that you can sell and reduce your debt may be worthwhile.
High fixed expenses
Fixed expenses are the same each month, no matter what you do; house/rent, car, student loan payment, etc. Reducing your fixed monthly bills will usually require more drastic measures but this can be a great way to reduce a large amount of debt quickly.
What is the 30-day rule for saving?
The 30-day rule for saving is an excellent concept for people who love shopping and have a hard time saving. This method can be a great way to save money fast which your bank account will thank you for.
The concept is simple. If you want to buy something, put the money you would have spent on that item ($50 for a sweater, for example) in your savings account. After 30 days is up, if you still want the item, you can purchase it. If not, leave that money in your savings account.
This can be an easy way to save money and realize how much you spend on potentially frivolous purchases. If you do not have a savings or emergency fund yet, it may be worthwhile to allocate all money saved to these savings accounts to jump-start your fund.
The 30-day rule for saving is a great challenge to do to see how your spending habits shape up after the month is over.
How can I save 10k in 3 months?
Setting a savings goal of 10k in 3 months will likely take some diligent effort and significant lifestyle changes, however, it can be done.
Here are some ideas on how to jump-start your savings account and make extra cash quickly to save 10k in 3 months!
What Can You Cut or Save Money On?
The easiest way to save money fast is to spend less than you make. Sounds simple right? Unfortunately, most Americans struggle with saving their hard-earned money.
- Call your cell phone plan and ask if there is a cheaper plan for you to switch to. Your carrier should be able to view your usage history and habits to recommend the best plan for you.
- Consider cutting cable and signing up for a streaming service if you want the option to binge a series on a Sunday afternoon.
- If you’re a big TV watcher, call your service provider and ask if there is a cheaper package or any promotions you can take advantage of for being a loyal customer.
- Cliche, but hear me out. Make coffee and eat at home. Once you get into the habit and ritual of brewing your coffee at home, it can be a nice treat. Invest in some quality coffee grounds and creamer if that’s your jam. Also, making food at home and eating leftovers can save you hundreds (if not thousands) per year.
- Do not buy anything not necessary for a set amount of time. One week? One year? Totally up to you.
- I have seen people participate in year-long spending freezes, and it amazes me the creativity and hard work they put into it.
- Starting with a one-week spending freeze can allow you to see your purchasing habits and adjust. It’s also a surefire way to jumpstart significant savings. It is easy to see how much frivolous spending you make, even little purchases (hello Target dollar spot, I see you).
Consider Big Life Changes
- Significant changes can include moving to a lower cost-of-living area, getting a roommate, selling a car, getting a better-paying job, or a regular part-time job.
- While these may seem drastic, many people have found great joy and relief in making lifestyle changes to pay off debt and save money.
A great way to earn cash to put towards your debt or savings is a side hustle or gig.
- Loyalty and Consumer Rewards Program
- Swagbucks allows their users to get free rewards (like gift cards and cash) for everyday activities they’re already doing, like searching the web, playing games, taking surveys, or shopping online.
- The rewards can add up. Many users have stories of hoarding their Swagbucks earnings and using them to pay for Christmas presents or their family trip to Disney.
- You can use Swagbucks from your phone, giving you the flexibility to earn while waiting in the car pickup at school or while watching videos at night. You can reasonably earn a few dollars a day, which adds up to $100 a month.
- Freelance Work
- Sites like Fiverr, Upwork, and even Linkedin have freelance jobs available. This can be a great place to make extra money each month if you have writing experience, SEO, graphic design, and more.
- If you have a passion for design, graphics, or handmade crafts, Etsy may be the place for you. Etsy creators can make tremendous money by providing their skills or digital products for sale.
- Bonus points: You can do this from your couch.
- Passion Projects
- What are you genuinely interested in? Maybe it’s supporting rescue animals or being involved in your child’s school.
- See if these interests have part-time or paid positions available (like substitute teaching or working at an animal shelter in the evenings).
- Don’t be afraid to get creative and think about what you’re passionate about and how you can get paid for it.
We all need money to live. That is the unfortunate and complicated truth of it. However, a game plan with ideas and tricks to save extra money each month can be a great way to get your spending under control and jumpstart your savings accounts.
By fully understanding your budget and simplifying your payments when necessary, you can be on your way to financial independence and finally take that vacation you’ve been pining after for years!
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