This year I’ve been doing a series of resource posts on some of the most widely covered topics. So far we’ve covered how to make a personal budget and ways to cut your debt. This week we are focusing on some great ways to save money.
I still remember the day it dawned on me that by actually thinking about and monitoring where my money was going, I could actually have a lot more of it. As a person who spent many years not paying attention to where my money was going, it was quite an eye-opening experience.
I remember seeing my credit card bills and wondering to myself how going out to eat a few times and a knick-knack here or there could add up to hundreds of dollars. I would often recalculate the totals because I was sure that the credit card company had made a mistake. Yet I never found a calculation error on their end – it turned out it was just foolish overspending on mine!
Begining to try to save money
I then started with the easy ways to save money by trying to cut back on going out to eat, say no to unnecessary purchases, and invest some time shopping for a better deal. To my surprise, the small amount of energy that I put into saving money yielded hundreds of dollars of savings – rather than just a few bucks that I previously assumed.
To clarify, I just thought all the money-saving techniques, like buying used, cutting coupons, and cooking food at home would only yield a small amount of savings – so I never tried them. Since I was good at spending more money than I had, I was able to save a lot of money just by making a few small adjustments.
Americans love new cars and eating out
I remember interviewing a very wealthy mentor of mine and he said that many Americans trade retirement savings for being able to drive a new car and go out to eat. He explained that just by making the sacrifice of not always driving a new car and eating at home, it is so much easier to get ahead and build wealth. (Related Article: How your car affects your financial freedom)
Over the years I can say that I can’t agree more – particularly when it comes to cars. The average American spends way too much money on car-related expenses. From paying for the car itself, interest charges, insurance, maintenance and repairs, and taxes some people end up spending over 30% of their income for car-related expenses. All for something that quickly depreciates and typically sells for a fraction of what you pay for it new.
Eating out
I still love eating out, but my wife and I have chosen to make it more of a celebratory event – rather than a daily occurrence. To save money when we do eat out, we often use our Entertainment Book cut our our bill by just about half.
So anyway, while cars and food are two great places to start saving money, there are countless other ways to save some bucks…
More articles to help you save money
These are some of the articles written over the last few years that will help you save money in a variety of ways. And if this isn’t enough, you can always scan all the articles in the save money category.
If you need more inspiration to help you save money, these are some books you could check out…
Books to help you save money
{ 9 comments… read them below or add one }
Thanks for such a great post! I also used to think my credit cared company made a mistake
too. What I did was call them and lower my credit limit to an amount I felt was ok for the month. Now, I make sure my expenses never exceed that amount, rather I have some leftover amount monthly. Dave Ramsey’s books are great.
Great advice contained in this article, much less the wealth of useful information in the links.
One of the biggest things I’ve done to help me save money on unplanned expenditures is to carry some “emergency food” with me. I throw some poptarts or peanut butter crackers in my bag, and I don’t have to stop at a fastfood place for breakfast when I’m caught out hungry.
Likewise, a chocolate bar often covers my desire for a pick-me-up coffee run during the day. I don’t even have to eat the whole thing. I break off a single square and let it melt in my mouth. It not only lasts longer (I buy good quality chocolate, and the last bar has lasted a month or so), but I actually taste it and savor the flavor.
The last suggestion I have is to carry a refillable bottle. Since I gave up sodas this year, I’ve been drinking lots of water (which I did anyway, but more now). Since I have my own bottle, I don’t have to buy one at a gas station at high prices. A quick run to a water fountain or a sink if need be, and I’ve got free water all day long.
As always, these tips are great! My husband and I also only eat only when we are celebrating something special. We also find that tracking our purchases using Quicken works great. We feel really accountable for everything we spend when we know it will be recorded in Quicken. It’s a great way to keep our spending in check.
i think that one of my major vices is eating out. as for the cars, i have never seen the need for one and between me and you, i am not such a good driver. i dont even have a drivers license. i have a mentality that when it comes to big things like cars and expensive electronics, i will need it if and only of i am in a position to pay for it in cash. for now, i take the bus and walk it out. But the thing is that everyone has his/her spending vices and mine is the occasional meal in a restaurant
Such a great post! This article contains great advice and useful infos. This post may help people realize that saving money is very important.
Nice tips on money saving. I use the coupons regularly for groceries and food. I use a free toolbar that saves time in coupon searching and printing.
Great article! These are some really useful tips. My colleagues started a game where they accumulated points for catching someone who left their light on when they weren’t in their office or cubicle. It’s a fun way to integrate green accountability in the workplace.
Another tip on saving money when you go out to eat. I started’ mystery shopping’ and select to go out for a meal. Yes I have to pay up front, but they joy is I get my money back. Wish I had done it years ago.
Another good tip for office workers is they can always bring lunch which are actually leftovers from last night’s dinner. It’ll save you money from having to go out and eat!