Let’s talk about ways on how to save extra cash. You are never too old to start saving, but the reasons might be different for someone who is 30 years old versus someone who is 60.
What I want to do in this article is look at a few different things you are spending your money on as well as what you are doing with your paycheck when you get it.
Some of these seem like common sense, but people still do not do them. You have to consider how you spend money now before you can start saving money…
Or do you?
How can I save extra money?
The very first thing I think you should do is pay yourself first. Of course, that starts with the minute you get paid from your job.
What do you do now?
Depending on how tight your monthly budget is you probably go out and spend a little on yourself first!
Maybe you go out to eat, buy some clothes, go to a movie, etc. Nothing wrong with that, but I would suggest the first thing you do is put away some money in savings.
Regardless of how old you are you can still start saving money right now. How much? Put as much away as you can comfortably afford to live without?
Follow My Simple 4 Step Formula and Copy the Exact Method I Used to Quit My Bus Driver Job
One of the best ways to enjoy saving money from your paycheck is to join your company retirement account. Some companies offer 401(k)s, while others offer investments in things like a Roth IRA.
Check out and see if your company offers a company match. This just means for example if you put in 4% they match you with 4%.
Some companies offer this, others offer variations of it, but this is free money to you. You don’t have to do anything at all except save some money from your paycheck first.
You get to determine how aggressive you want to be when investing. If you are younger you should be more aggressive. If you are older you want to be more conservative.
As long as you do not touch this money until you retire this can grow into a large amount of money to access someday.
What is the 30-day rule?
As it pertains to savings here is what the 30-day rule is. Instead of purchasing something on impulse you take the same amount of money and put it in your savings account for 30 days.
If at the end of 30 days you still want to buy it go ahead. If not you have saved some money and not bought something you decided you didn’t want or need anyway.
What I like about the 30-day rule is it gets you off the hook if you are an impulse buyer. We all get tempted to buy things.
Some of us are worse than others when it comes to impulse buying. By stepping back and having a 30-day cooling-off period so to speak it lets us analyze if we really want to buy the thing we are impulsively looking at buying.
How can I save money on a small salary?
I’m always amazed at people who do not make that much and yet still find a way to save. Here is what you should be doing.
First of all, is your bank account in the red or is it in the green? If you have some money left each month from what you earn great. If not, why not?
Let’s start with how much you take home in each paycheck. This is easy to figure out. Just look at your pay stub.
How much do you spend and where do you spend it?
Use Mint.com to help you put your spending into categories if you pay by credit. If you pay by cash most of the time you need to start saving your receipts. You may be amazed at how you really spend your money.
Set A Savings Goal
Once you see what you bring in, and how it is going out, you can set a savings goal. Personally I think you should start with a small savings goal, one you can hit with a little bit of effort.
Because I want you to hit it! What if you want to save $300 a month. Is that even realistic?
Would you be better off to set a goal of saving $100 a month and then really start achieving that!
You can always increase the amount later. First, you need to get in the habit of saving and you need to be in the habit of sticking with what you say you’re going to do.
It’s kind of like people who go on and off of diets all the time. They set this big goal of how much weight they want to lose, but it’s not a realistic goal.
Then after a week or two, they give up because it begins to dawn on them how impossible achieving their big goal really is. When you’re trying to save money it’s better to set a realistic goal and achieve it. Then you can increase it to more at that point and start working on achieving that.
Let me show you a simple 4 step proven system that many are using and having the same SUCCESS!
How do you save on everything?
Here we go. Let’s get down to the nitty-gritty. I believe once you are committed you will start finding all different kinds of ways to save money.
1. Cut the cable bill.
It wasn’t that long ago that I remember people starting to talk about smorgasbord order when it came to watching TV. Netflix was new and other streaming services were starting to follow such as Amazon, Hulu, and so forth.
This really is a great way to save money without sacrificing a lot in terms of what you watch. Cable companies used to brag how they were giving you 1000 stations.
In reality, you were probably only watching a handful of those anyway. Cut your cable bill, get a really good Internet provider, and then choose Streaming services you would enjoy watching when you have time.
Realistically this could be an easy way to save $100 a month or more! I give you this first because you can save a significant amount and it is easy to start with.
2. Shared Services.
It is easy to cancel a streaming service and go on someone else’s plan. Then offer them one of yours.
As an example, you cancel Netflix and go on your son’s Netlfix plan. He cancels Amazon and goes on yours.
You buy the NBA league pass and he buys the NFL league pass. Then you share! You get the idea.
Sharing can cut your service provider’s cost in 1/2 and it only takes a few minutes to set up!
3. Go to the library.
When is the last time you were in your local library? Did you know you can get a library card for free?
Some library’s today are simply amazing. I’m talking about everything offered beyond books and magazines.
Some of what you can access for free include…
– the internet
The library is a great way to save money and have a great time for you and your kids or grandkids.
4. Sam’s or Costco
If you spend enough money to buy in bulk then joining a membership club is probably worth the yearly fee. You can quickly begin to build up your own inventory of things you use and the savings becomes real at that point.
The other thing not often talked about is the savings offered from wholesale clubs on other items. You can buy discounted restaurant gift cards, movie tickets, and theme park tickets just to name a few.
5. Ask for a discount.
Are you a senior, or in the military? When you pay for something ask if they provide a discount. Students and college kids might be eligible as well. It never hurts to ask.
6. Cut regular purchases.
Do you go to Starbucks every day? This may kill you, but how about going every other day? If you spend $6 on each visit that will save you about $600 a year.
How often do you eat out? Cut that in half as well. You could save upwards of $2k a year just on what you spend eating out.
Fast food is a tough one for many of us. It takes some planning to get a grip on how much money we spend just to save time shopping for and cooking meals.
7. Save on your mortgage.
This is one I do not understand why more people don’t do. How about changing your 30-year mortgage to a 15-year mortgage?
On a 200,000, 30-year mortgage at 4.78% versus a 15-year mortgage at 4.17%,
you would save around $7200 a year or almost $108,000 in 15 years. Your payment would jump from $1047 to $1496 a month.
That is $441 a month which scares people. However, if you can get going on this, and then figure out ways to cut spending to achieve this, the savings would be worth it long term!
I have mentioned saving money eating out, but that means your grocery bill might go up. How do you save on groceries every week?
The fastest way is to become a better shopper. How?
A. Calculator. Take a calculator with you or open the calculator app on your phone. Know what your budget is for the week and do not go over that amount.
B. Meal Plan. If you know what you are going to cook it is easier to shop just for that. It takes impulse buying out of the equation.
C. Leftovers. Make a concerted effort to use leftovers as full meals and not snacks.
If you spend an average of $20 a meal for your family, and you use leftovers as 2 meals a week, this would be over $2k a year you save. Plus it is 2 nights you do not have to cook 🙂
I have never been good at using coupons. However, with the apps available today it is easy to do couponing even if you only do it a little bit here and there.
One website that has always impressed me is Coupon Mom. You will find printable coupons and other savings on her site which is updated all of the time.
Visit her YouTube page for some great videos on saving money with coupons.
Of course, if you want to take the time there is a never-ending amount of coupon sources online for just about everything.
10. QR Codes
One thing you can do is use apps for fast food restaurants and buy a special they are running. Then when you pay to pull up the app and have them scan the QR code for instant savings.
This will work in almost any place you shop. Stores are hip now to using QR codes to draw people into their store and allow them to access instant savings.
11. Earn more!
Last but not least I suggest you use the Internet to make some extra money. My website at David Bishop Make Money Tips is packed with hundreds of ideas on how you can earn more money.
My favorite way happens to be affiliate marketing. You can make money with Amazon, Google, ClickBank, and many other affiliate programs.
Join Wealthy Affiliate for free and start learning how thousands of people just like you and I are making extra money every month to pay bills and save more money.
In Summary: 11 Ways On How To Save Extra Cash
This is nowhere near an exhaustive list of ways on how to save extra cash. However, what it does for you to give you real ways and ideas you can start saving today, not tomorrow! If you will use even a handful of these you will improve your financial situation in a BIG way!
PS: No credit card needed!
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