Updated October 13th, 2023.
Discovering new ways to earn and save more money is a critical component of a successful financial plan.
In 5 Easy Ways to Save Money, you will learn:
- Several of the best strategies I learned directly from millionaires
- How to make saving money easy and fun (No, it doesn’t have to feel like a diet!)
- What wealthy people do that most people don’t do
- Strategies for saving that you may not know exist
- How to maximize discounts and save money like a wealthy person
Smart Ways to Save Money
Set your short and long-term savings goals.
The best time to start saving money is yesterday; the next best time is today.
So, instead of beating yourself up for what you haven’t done, focus your energy on starting a savings plan now. The money savings tips you will learn in this article are a great first step.
While interest rates on savings accounts are typically low, you should always shop around to find the best option. Also, ask about linking your bank accounts to reduce fees or get a better interest rate.
Fund Your Savings and Retirement Accounts
The first savings goal to work toward should be to fund your emergency reserve. This will include six months or more of your monthly expenses. Determine how much money you can afford to save each month, and then automatically transfer that amount from your checking account to your savings account each month. If you haven’t funded your emergency fund make that a priority.
It is best to set up a new savings or money market account to fund your emergency reserve instead of depositing the money into your checking account. Once you start building your savings, you need to be disciplined not to spend the money unless it is an emergency.
If you haven’t started saving for retirement, do so as soon as possible. Knowing how much money you will need to retire comfortably is important. It may also be helpful to hire a financial advisor to help you determine how much money you need to save to meet your goal.
Automate your savings
One of the easiest ways to make money is to automate your savings deposits. Online banking and budgeting apps have made this easier.
You can start by determining your monthly savings goal. Pick a date to deposit that amount into your savings account each month so you don’t have to think about it. Then, when you have extra cash or receive a bonus, you can deposit it separately into your savings account.
Reduce your bills
Another important step is to review where your money goes, and then determine what you need and can afford. Some great questions to ask yourself include:
- Do you save money with Amazon Prime?
- Can your landscaping company come every other week instead of every week? (This can save you a lot of money!)
- Can you reduce your car insurance?
- Should you refinance your mortgage? (Always check with a qualified advisor instead of someone who is getting paid to refinance your debt!)
- Are there cheaper streaming services, and do I even need one?
- Can I start using LED light bulbs that are more energy efficient? And, as a result save more money?
- Do I need to eat out multiple times per week?
- Can I take a shorter shower to save water?
- If I take only cash to the grocery store, would I save money?
- Can I reduce my bi-monthly pedicure to once every three weeks?
- Can I find a cheaper cell phone plan?
Ask for discounts
In today’s episode, you will learn big savings tips, plus how to ask for discounts without feeling awkward. For example – can you pay cash and get a discount? While it may be uncomfortable to ask for a discount, in today’s episode, I will teach you what to say, so it isn’t. Cash is the ace here, and most companies will gladly take it to avoid credit card fees.
If they don’t offer a discount for paying with cash, they may offer an interest-free payment plan.
Another option is to levelize your variable bills, such as your gas or electric bill. Some companies (whose bills fluctuate during the year) allow you to set up fixed payments. For example, in colder climates, electricity bills are generally higher in the winter. By levelizing your bill, you can pay a set amount each month. This makes budgeting easier.
Click the image below to watch today’s episode where you will learn:
- How to get a discount on your internet or cable bill.
- Ways to ask for discounts without feeling awkward and how to score a win-win for both parties.
- How to ask for a discount on your medical bill (This saved me $1,000!).
- What to ask before you have a medical procedure (This will save you money.).
- The exact question I asked that saved me over $700 and allowed me to stay within my budget. Click here to download The Magical Budget Template:
- What to say if the final invoice is more than you expected or what was quoted.
- How I saved over $6,500 simply by asking one question.
- The different ways to ask for a reduction in price so you can save more money.
- How I got my cell phone company to reimburse me for a $1,000 overcharge (It was not easy but worth the wait.).
- The most critical discovery I made about how millionaires think and save money.
- How to save on recurring vendor fees (I saved over 35% per year on just one vendor and 75% with another vendor using this strategy.).
Additional Ways to Save Money
Remove money blocks
Identifying and removing money blocks is a great place to begin if you overspend.
Money blocks are often developed early in life and can be so ingrained that we are unaware of them. An inability to save money or a tendency to overspend is a side-effect of a money block.
Pay off your debt
If you have debt, paying it off should be a top priority. This will allow you to stop paying interest and invest the money. Once you pay it off, you can use that money to save for your emergency fund or retirement account.
Reduce your grocery bill
In a recent survey, one family shared that their grocery bill was less than $1,000 per month! Other single people were only spending $300 monthly. One of their secrets is that they prepared most of their meals and rarely dined out.
One of the best strategies is to first create a budget and determine your monthly budget for food. Then, divide that amount by the number of weeks in the month (assuming you shop for groceries each month). When you shop for groceries, take that amount of cash with you and no more.
While this strategy requires paying attention to what you are purchasing, it is amazing how much money you will save. And before you know it, overspending on your groceries will be a thing of the past.
Compare insurance rates
If you haven’t compared insurance rates on your car, home, or umbrella policy, make this a priority.
Many of our members and clients share that they have saved hundreds of dollars simply by comparing rates.
Stop buying to-go coffee
Do you really need that $5 latte from your favorite coffee shop each morning?
One of my friends and her husband were spending $28 per day on specialty coffee drinks – that’s over $9,500 per year!
Their justification was that it only cost $5 a drink (yet they bought four of them daily). When I shared with them the annual expense, they were shocked.
Say “yes” to free money
Most employers will match your retirement savings up to a certain amount. For example, if your employer matches up to 6% of the amount you fund into your retirement account and you save that amount or more, you are receiving free money!
Sell the things that don’t bring you joy
Your home and closet (for my women friends) are likely a gold mine. Most of us have so many things we don’t need and that could be sold to make money. Ways to sell off items include consignment stores, local online marketplaces, and even social media accounts (if you list online, be aware of your safety).
Resell other people’s stuff
In the community where I live, we have special trash collection days where we can throw away large items that don’t fit into the garbage can.
Sample of items discarded include tables, chairs, desks, dressers, beds, frames, doors, toilets, strollers, lamps, baby toys, bicycles, stoves, and vacuums (Recently, I saw a vacuum that is valued at over $500; the next day, it was gone.).
Many items are in good condition, but people don’t want them or don’t have the time to take them to a charity store. Others obviously see their value as many items are taken before the city picks them up. These reclaimed items are likely fixed to be used or resold at little or no cost to the finder.
Conclusion: 5 Easy Ways to Save Money That Most People Don’t Know
Remember: The first step is to start saving money today. Begin by funding your emergency reserve, paying off your debt, and saving for retirement.
Also, review where you are currently spending money and determine what you can reduce or eliminate from your monthly expenses. You will be amazed at what you save!
It takes 66 days on average to change a habit (including overspending) but living a financially free life that you love is priceless.
Click here to access today’s episode: Save More Money