If you’ve come here, you probably want a bit of help understanding how to save money and to eventually stop being broke. Fortunately, there’s no rocket science to it and I have laid it all out for you below. Just keep reading on. And please, don’t stress about it, it’s a common problem and most of us go through it at some point in life. It’s not the end of the world. On the contrary, it teaches us to value the small things in life and pushes us to work harder in order to achieve what we desire.
1. Put it away the right way
If you truly want to save money, the most straightforward approach is to put it away into your savings account.
As T. Harv Eker says in his book – “Secrets of the Millionaire Mind“, it’s very important that you open up a couple of different bank accounts, one of which is going to be for your savings. You don’t want to have what you save and your spend money lying together in the same account. If they are not separated, you will be inclined to waste it all as soon as another “special” cause shows up.
Also, it’s very important that you put away the money you are going to save right at the beginning of the month. Some people leave it until later in the month, but never make it happen simply because they don’t have any of it left then. This is also the principle I use when making donations. I always donate at the beginning of the month while I haven’t yet spent the money on unnecessary junk.
2. Discounts, discounts and discounts
We all know what discounts are and we all love them. However, what’s really cool is that you can find almost anything on sale at any given day if you do some research.
Depending on where you live, there are different rules for food being discounted in grocery stores. For example, in my area, any product that has an orange label (expiration date soon over) has a 30% discount. But if you wait until 9 p.m., that discount doubles, making it a 60% discount! I have seen people pack their grocery carts with these orange-labeled products top to bottom. Now just imagine your $100 grocery list turning into $40. Isn’t that awesome? No worries though, these products are completely safe to eat.
Also, in the past two years, I have become a big fan of buying everything online. First of all, it’s super easy. But the other nice thing is that you can always find stuff cheaper online than if you were to buy it in the typical local supermarket.
I suggest you have a look into this. You will be surprised but just how much you can save buying primarily discounted products.
3. Remove the liabilities
The third tip on how to save money requires you to get rid of your liabilities.
Robert Kiyosaki, in one of my favorite books about the money mentality – “Rich Dad Poor Dad“, explains one of the key differences between why the poor become poorer and the rich become richer. Well, the poor tend to spend the money on liabilities, while the rich spend money on assets.
A liability is something that will cost you money and bring nothing in return. An asset, on the other hand, will make you more money.
For example, for me at this stage in life, a car would be a liability. A car is expensive and requires a lot of additional costs, such as the costs of petrol, car repair, car insurance and inspections. Where I live, it’s just so much easier to take public transport. Besides, I like listening to audiobooks peacefully when traveling on the bus.
However, if my work was in a place to which I could only get by car, the car would become for me an asset, since it is what allows me to make more money. Hopefully, you get the point.
Consider also the TV. TVs are expensive and watching television does not help you become a smarter person. On the contrary, TV is what makes most people lazy and dull.
I find television very educational. Every time someone switches it on I go into another room & read a good book.”
– Groucho Marx
Your internet connection and your phone can be your assets, but they can also be your liabilities if you are paying for more than what you really need. Give it some thought.
4. 24 hours
The fourth tip on how to save money states that if you are impulsive to buy something, don’t do it right at that moment. Stop and give it some time. Give it 24 hours, and if you want it still after the 24 hours have passed, reconsider it. However, often you will realize that you don’t need the “shiny item” as much you thought you would.
5. Make a budget
The best way to do anything in this world is to plan well in advance.
If you want to pass an exam or make an awesome presentation, you plan and prepare well in advance. If you want to achieve something meaningful, you first plan what is it that you want to achieve, how you will do it and by when. In other words, you do some goal setting.
With saving money, it’s no different really. In order to make sure you don’t spend more than you can, you always plan your budget well in advance.
The bottom line is that if you don’t have a budget, you don’t know how much you can spend, which inevitably leads to spending more than you can afford. I know this, I’ve been there. Heck, I still am there sometimes. I hate to admit it, but it’s true. If I don’t plan my budget, I spend too much. End of story.
6. Earn it
The last but not least tip on how to save money is actually not about saving at all.
Let’s face it, in most cases, it’s hard to save money because we don’t have too much of it. I mean, it’s not like we’re buying a new car every week and are just too lazy to put some money away. Many of us are so broke that we have to save up for something as basic as a new pair of shoes.
Because being poor sucks, I think it makes more sense to try and reach a point in life in which you don’t have to care about saving money anymore. No, I don’t mean living naked in the forest. I mean being financially free and knowing that you have enough money at all times.
There are a ton of ways to make money online these days without spending a fortune. Just do your research and make sure you find a way that will bring you fulfillment and joy. You also don’t have to start big. Find a small job or project on the side that can be the source of your savings for something more meaningful later on.
Hopefully you found this post useful. If you want more ideas on how to make money online, be sure to sign up for the blog news. As a bonus, you will get a freebie pdf with 15 different ways you can make that happen.
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