How To Save More Money Than Last Year
Life is full of decisions. These decisions, big or small, shape our future. And whether we like it or not financial decisions are among the most important... At the end of the year, most people have very little to no money saved. They pay their bills then proceed to spend all of their money week after week. Eventually a tragedy hits, such as job loss or expensive health issues, and they're forced to borrow money. Once you're in the hole, financially, its very hard to get out. Like my high school math teacher use to say, "don't let this be your life story".
So, here are some tips on how to save more money than you did last year.
So, here are some tips on how to save more money than you did last year.
1. STOP buying name brand products
Every time you go shopping, you have a choice on which brand to buy. There are both affordable and expensive brands and the quality usually isn't that much different. For example, people often compliment me on my scent. Little do they know, I wash my clothes with the cheapest possible detergent (usually 4 times cheaper than the alternative) and wash my body with the cheapest possible body wash. By purchasing more affordable products, you have the possibility of saving thousands each year.
Examples:
- Hygiene products
- Cleaning products
- Food
- Clothes
2. Cut unneeded spending
In the past, I'd stop at gas stations and buy 2 energy drinks every day for $5. To me, the $5 was so minimal that I didn't mind spending it. However, that $5 each day added up to $1,825 a year. That's a lot of money being spent on an unneeded and unhealthy product. I see people buying cigarettes, lottery tickets, drinks, snacks, coffee and more every day. Imagine how much money you'd save if you stopped.
Examples:
- Coffee Shops
- Fast Food Restaurants
- Gas Stations (except for gas)
- Gift Shops
- Malls
3. Meal Prep
Everywhere I've worked, most of my colleagues go out for lunch spending roughly $10 a day. I, on the other hand, choose to meal prep. Typically, I can get my lunch cost down to roughly $3 a meal. In the United States, there are roughly 261 working days per year. So, the savings in this scenario for me vs. my colleagues is $1,827 each year.
4. Reward Cards & Perks
Many grocery stores and gas stations offer reward cards. When you purchase groceries or gas, you'll receive rewards which in turn equals savings. For example, I get my groceries from Meijer which offers Meijer Perks. Every time I spend $100 I get $2 in credit along with coupons and other perks throughout the year. Credit cards are another example, if used correctly, that can be financially beneficial. Over time, these perks can add up to hundreds of dollars saved per year.
5. Create a budget
Having a budget brings about an awareness towards your financial goals. It reminds you that you have a goal which in turn reminds you to make smart financial decisions. Just make a budget. It will make a huge difference. Trust me!
Check out my beginners budget template here: Budget Template
6. Choose more affordable options
I recently won a 2 year lease on a brand new 2018 Honda Civic. Yes, won it! I'll save that story for another time. However, when the lease ended, I needed to purchase a car. I explored many options before I decided to buy a used 2009 Ford Fusion. Most people in my financial position would never buy this car because of the age and style.
My reasoning for buying it came down two factors:
1. The car was only $4,000
2. The car was reliable enough to get me from point A to point B safely
In my eyes, the point of a car is to get you from point A to point B, safely. Looking "cool" or showing off doesn't help your finances one bit. If you want to take your finance game to the next level, make smart financial decisions like this one.
My reasoning for buying it came down two factors:
1. The car was only $4,000
2. The car was reliable enough to get me from point A to point B safely
In my eyes, the point of a car is to get you from point A to point B, safely. Looking "cool" or showing off doesn't help your finances one bit. If you want to take your finance game to the next level, make smart financial decisions like this one.
7. Decrease holiday spending
A few years back, I quit buying Christmas and birthday presents. It was weird at first and people questioned my decision. However, they're use to it now and they don't love me any less. You don't have to go as far as ending your gift purchases but you don't need to buy people things to earn their love or respect. Anyways, in my opinion, the most important thing you can give someone is time. Try spending less on decorations, gifts and random holidays knick-knacks. The savings will add up quick.
8. Don't try keeping up with the Joneses
Just because someone near you has the "latest and greatest" doesn't mean that you need it. Unless you're very financially successful, don't waste your money trying to impress others. In many cases it actually does the opposite by turning people off from you because most people can't relate. Be yourself and let people be impressed with who you really are.
In conclusion, saving money isn't that hard. Saying no to things you're accustomed to is. But, in time, it gets easier. Plus, an extra zero in your bank account does wonders for making up for not being as "cool".
I'd like to recommend a book, written by two doctors, that dives further into this topic. Enjoy!
I'd like to recommend a book, written by two doctors, that dives further into this topic. Enjoy!
