Saving money provides a greater sense of financial independence and peace of mind, knowing you have reserves to help weather the unexpected. Furthermore, saving money has been linked to happiness according to a survey
by Ally Bank.
to save and actually doing it is not the same thing.
Here are few tips and tricks to help you get on the path to saving money. Some are simple cost-cutting methods while others are loftier goals to change the way you think about saving.
1) Plan ahead; buy items you regularly consume in bulk.
Items like laundry detergent, toilet paper, toothpaste, trash bags, soap/shampoo, your favorite snacks and other regularly consumed products can be purchased in bulk at a substantial discount. For example, if you often turn to protein bars or breakfast bars for a quick snack or on-the-go meal, rather than stopping at the gas station and purchasing one bar for $1-$2, you can go to the grocery store and buy an entire pack for half the cost per bar.
2) Say no to the vending machine.
If you buy one $1 vending-machine soda a day, that’s $30 per month you’re spending on soft drinks. Instead, buy it at the store: two and a half 12-packs will cost you $10, saving you $20 per month. You can also try to cut out this vice, or reduce your daily trips to once or twice per week to keep more money in your pocket.
3) Set aside the Lincolns.
Every time you receive a $5 bill as change, put it away in an envelope. Most people won’t miss it. In one year you will be amazed at how much your collection of $5 bills add up. At the end of each month, or a few times a year, deposit your Lincolns to your retirement account and get them working for you.
4) Write a list before you go shopping and stick to it.
This is another tip to help avoid impulse purchases. When you’re staring at the vast array of attractive options it is much easier to overspend without noticing. Take 10-15 minutes to make a shopping list of what you need
and then stick to your plan.
5) Holiday shop a few days after the holiday.
Do next year’s Christmas shopping a few days after Christmas or purchase wrapping paper, decorations, and other holiday themed items a few days after celebrating. You’ll often find substantial discounts on holiday items you know you’ll be purchasing again next year.
Access 10 more money-saving tips
and more ideas for how to grow your wealth.