Most people believe they don’t have to worry about saving money. Why would they? They (or their partner) are making more money than they need. Does this possibly apply to you?
What ends up happening is you ignore saving money and then the day comes when you want to retire or you or your partner can’t work, and you realize you should have taken time to learn how to save more money when you are making it. And it is disastrous.
And I have seen this happen so many times. I think we are in an epidemic of under-saving and overspending. It impacts all income levels and even people who have a significant net worth.
Saving money is important for all of us, regardless of how much money we have or where we’re at. There is nothing fun about being a bag lady or a broke man in retirement. So, take note and apply what you learn today, you will be so glad you did!
So please take notes and apply what you learn today. You’ll be so glad you did. I guarantee it.
Now, some do, but I’ve never seen anyone who thinks they do.
Transcript: How to Save More Money
Hi, my name is Annette Bau (bah oo), your host of the Wealth Inside and Out® Podcast. I’m a Certified Financial Planner™ and founder of The Millionaire Insider®.
For over 30 years, I have been advising and researching the top 1% of millionaires.
I am passionately obsessed with money, mindset, and the intersection of self-worth and net worth and how the two connect and allow us to live fulfilled and wealthy lives on our terms.
From Humble Beginnings…
Growing up in the Midwest, I had a dream. I began investing $25 a month 35 years ago, and today have a multimillion-dollar net worth.
And, I teach the tried-and-true principles that only someone with over three decades of experience advising millionaires would know. This podcast is different – it’s about much more than money. We talk about mindset, success, money blocks, worth barometer, and all aspects of money and topics from practical manifestation, along with real-world how-to, and everything in between, with the goal of making your journey easier and more fun.
Think of this as coffee, actually, matcha tea, learning real-world, common sense, money, and life advice from a BFF that you can start applying today. If you want to create a financially free life you love, you are in the right place, my friend.
This is the Wealth Inside and Out® Podcast.
Transcript: How to Save More Money Before You Need It
So, let’s dive into how to save money before you need it.
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Today you’re going to learn some practical ways to save more money, including simple ways to pay less on expenses. You will also learn ways to earn money and save more on your savings.
The Wealth Academy is going to help you in the areas of your success formula your money mindset, mastery, your spending plan, and budgeting, as well as the generation of income.
So, if those are the areas you need help on, that’s a great place to start.
My favorite analogy about money is that it is a freedom chip and stored energy for the future.
When you think of that, it sheds a whole new light on saving money, right? Can you imagine having freedom chips falling from the sky or stored energy you can use whenever you need to?
I love it.
If you don’t have a financial plan or you want to make sure your affairs are in order, click here:
Begin Where You Are
If focusing on what you spend in a day is overwhelming, begin by focusing on how to save more money each day.
Then, start to journal each day and observe your spending habits. This is going to make it less overwhelming. And, it’s going to allow you to observe how you show up as compared to being caught in the moment of feeling anxious and overwhelmed, which oftentimes causes you to do nothing.
Now, some people find that a budget app is helpful. But if you have anxiety, I encourage you to simply observe how you’re acting and thinking as if you’re a third party and looking at your behavior.
It’s a fun exercise. I have found it can be really helpful in reducing anxiety for clients.
I used it when my kids were playing competitive sports. And had to deal with some of them, namely dads who were out of control.
I had to really work on my thinking and observation of how I was showing up.
Another helpful strategy is to focus on your long-term goals, specifically what you want your life to look like when you achieve your financial goals.
If you do not have a spending plan, click here:
Creating a Spending Plan
A great way to save money includes depositing all your income into a savings account and then once or twice a month, transferring your needed expenses to your checking account. Examples of need expenses include mortgage, rent, utilities, taxes, car payment if you have one, and even funding your emergency reserve.
Now, if you don’t have an emergency fund, you need to fund a minimum of three to six months of expenses in a secure account.
If you need to create a budget, go to https://themillionaireinsider.com/2. In this episode, I walk you step by step through creating a spending plan.
I’m not going to take the time here to cover it all because it’s in that episode.
That episode will help you from the perspective of understanding needs and wants. It will also help you get clear on how much money you’re spending and some different tips and tricks for your spending plan.
8 Insights on How to Save More Money
Set a Spending Limit
You want to set a spending limit for your “want expenses.” “Want expenses” are ones you’re going to pay with cash, at least initially.
They include things like entertainment, dining out, and even travel.
They include expenses that you want to purchase but you don’t have to. I encourage you to set a target amount of what you want to save each month. By focusing on what you want, i.e. saving money, your attention will be focused on saving more money.
Transfer excess money from your checking account to your savings each month.
If you are paying interest on credit cards, paying off your debt should be a priority. You can include the amount you’re paying on your debt as a need expense.
Let’s look at some money-saving tips.
Any service that has competition is easy to save money with.
Examples could be your cell phone bill, your trash, cable, internet provider, car insurance, or streaming services.
You may or may not have a choice with your trash. I will give you an example.
At our primary residence, we don’t, but at our second residence, we do.
We read an article that they were no longer recycling recyclable trash which we pay a premium for.
My husband called them and asked if they were recycling trash. They said, “Yes, it is the county that is not.”
He also shared that our bill has doubled. The customer service rep said, “Let me transfer you to another department. Tell them you’re canceling your service, and you’ll get a discount.”
I kid you not, we got a 35% discount.
That is the power of simply asking. Now, you have to have competing service providers for it to work, but I encourage you to call the services that you have that are either optional or have competitors and see if you can get a discount.
If you want a secure retirement you love, click here:
If you have services that don’t have competition, like an electric bill, I encourage you to incorporate practices that reduce your bill. Examples include doing laundry during nonpeak hours and setting your temperature to go up or down, depending on the time of the year.
There are a lot of things you can do, little tips and tricks. If you just call them, they will share ideas with you. For us in Arizona, air conditioning is a problem.
I was so frustrated because we made a huge effort to use less electricity. For six months, we have been doing laundry on off-peak hours, and watching it. We receive our usage on how we’re doing. And we’re in, like, the lowest 1% as far as how much we’re spending. It has got to be the air conditioning.
And our son is at home, and he has that air cranked so low, and it runs nonstop.
My husband and I sleep better when our temperature is at about 68 which increases the bill too.
Do what you can to lower our electricity bill.
Always shop with a grocery list. And only buy what’s on that list.
Incorporate meal prepping into your plan. This entails planning out your meals for one week or a month.
Ideally, make more food than you need, and then freeze the remaining food for a later date. This saves not only time but it helps if you have a busy schedule.
Use cash when purchasing groceries until you get your spending under control.
As I shared in a previous episode, I went to the store with only $200.
I was so stressed. The woman at the checkout said, “Are you okay?”
Clearly, I was not. I had $200 cash and spent $198.
I was paying attention to every single thing I was buying.
When we use a credit card, it’s easier to spend. But if you take cash, you’re going to pay attention.
So, if you tend to overspend, use cash.
Or send someone good at buying what is on the grocery list.
This is a really important one.
When you have medical expenses always compare the cost if you pay cash, especially if you have a high deductible.
Both of my kids in one year had major injuries. One got seriously hurt in soccer. It sounded like his leg split in half. We took him to an ER, he got an Advil and an X-ray, and they charged us $2,000.
I called and asked if I could get a cash discount. They said no, but I could pay it over 18 months with no interest.
The second bill was for a different hospital, and the bill was also $2,000.
They did every test imaginable. When I called them and asked for a cash discount? They said, if you pay today, we’ll give you a 50% discount. I was like, where do I pay? It’s just helpful to ask.
If you have a high deductible like we do or you’re paying cash, always call and get quotes before having a procedure done.
Often, you can get a cash price, which is significantly discounted. So, just pay attention.
Most people spend a lot of money eating out.
One of the things I want to encourage you to do if you spend money dining out is to split a meal.
It’s not necessarily even as much to save money but to avoid overeating. It’s a win-win.
Now, my children would never do that. My one son could eat, like, three meals, so it’s got to work. But for me and my husband, it’s perfect.
I needed my office painted, and I was expecting the price to be about $3600 to $4000.
So, I asked my favorite painter if he could give me a discount. I was thinking maybe 10%. But, I said, could you give me a discount? He said sure. How about $2900? That’s a $700 savings. Almost 25 or 30% discount.
We had another job where we got a quote to do the job, and we hired the person, and then they came back, and the bill was 25% more.
The gentleman I spoke with said it was what it was.
So, I asked to speak with his supervisor. I wasn’t trying to be mean, but I expect if somebody gives me a quote and it’s going to be more, they need you to let me know beforehand. And if it’s subject to change, that needs to be in the contract or quote.
He called back and said, “We’ll give you 40% off.”
And I got a huge discount just by simply asking, so don’t be afraid to ask. And I’m not talking here about being cheap. I’m talking about how if you get a quote and you’re planning on spending $5000 for something and it comes in at $15,000, that can wreak havoc on anyone’s budget, so just be aware of it.
That said, I think it’s really important that when you do have bills and somebody’s done the work, you pay them and even give them a bonus if you can afford to.
Refinance Your Home
If you have a loan on your home, it may make sense to refinance your mortgage.
I’ve had so many people argue with me over the years about the fact that I could make so much more money if I had a mortgage on my real estate.
And I don’t disagree. But the one thing they’re not taking into account is the peace of mind you get from living debt-free. And it’s priceless.
No amount of money can beat that feeling. It’s the best decision I’ve ever made. And I can guarantee 99.9% of my female clients would agree. Living debt-free is priceless.
I got this advertisement from a company I have used for 14 years. It said I could save $400 a year. And I’m like, oh, my God, this is a 35% discount. Sign me up.
I call up, and they’re like, oh, sorry, you’re already an existing client. I’m like, what? Why wouldn’t you give your existing clients the same discount?
The person said, there’s nothing we can do, but here you can send an email.
I took two minutes, and I sent an email. I said, “I think it’s ridiculous that you wouldn’t give your loyal clients who’ve been with you for 14 years a discount. I’m the one you should want a relationship with.”
I got a message back from a manager saying, I am so sorry, and you are so right. We’re going to give you a 35% discount for life.
That was worth the one minute it took me to write it.
Recap – How to Save More Money
1. Focus on your long-term financial and life goals. This is going to help keep you motivated when you don’t feel like saving money or monitoring your spending plan. Number two set up an effective spending plan.
If you need help with that, you can go to https://themillionaireinsider.com/2.
2. Contact the services that have competition, like your cell phone, cable, internet, and maybe streaming services. And for the ones that don’t, see what you can do to get on a plan to save money, like turning your air up when it’s warm, or doing laundry during off-peak hours. Some companies also offer savings plans.
3. Meal plan and create a list whenever you go shopping, especially at the grocery store. Or send someone else who has more discipline to buy what’s on the list and not what you feel like buying. And don’t go to the grocery store when you’re hungry like I do.
If you need help your money mindset, click here:
4. Ask for discounts if you pay cash, such as with medical bills.
5. Cancel subscription services you’re not using.
6. A way to save money is to transfer your savings to a high-yield savings account. Now, always check on insurance and safety and guarantees. Then save the extra money you earn.
So, there are just a few tips on how to save more money.
Even if you incorporate only one, you’re going to be further ahead.
Start slowly. Do one, then the next one, then the next one. Before you know it, you’ll be a master at saving more money.
So there you have it!
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Thank you so much for joining me for How to Save More Money.
I’m Annette Bau (Bah oo), your host.
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Bye for now.