The question, how to save money, is a prime issue for almost all of us.
However, ways to save money is what keeps becoming elusive.
Increasingly, the tactics of saving money seem more difficult, and the extent of your savings never seems to meet your target.
So the question, therefore, is how to save money effectively?
The trick is not to save a lot more money but save it in a manner that can reflect the result in a more pronounced manner in your overall balance sheet.
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How to Save Money Fast and Easy
Here is 12 ways to save money fast:
- Keep Your Savings in the Bank
- Do Your Research
- Clear the Clutter
- Don’t Spend Your Bonus
- Discount Coupons
- Look at Making Gift Rather Than Buying It
- Stick to Your Shopping List
- Save Money on Utility Bills
- The Savings Instrument
- Start Paying off Debt
- Time Your Shopping Sprees
- Pay Attention to Your Health
The problem is often not in setting a goal but rather a goal that is realistic.
It often happens that we randomly fix a savings goal without giving a lot of thought to it.
As a result, it is either a very small amount or a rather large amount.
It either falls short of your savings goal, or your savings goal is rather inadequate.
So the answer to, how to save money fast is often about how to save money effectively.
There are some key steps that you must follow to realize this:
- You must be careful about setting a savings goal.
- Now your savings goal should not be any random figure.
- You must make a careful calculation about your future expenses, current savings and arrive at a reasonable number.
- Once you decide on the savings target, it is important to stick to it.
- Decide on how to meet your savings goal. It is always a good idea to keep aside small sums of money every day or every week.
- If you keep postponing savings till the last moment, invariably you will fall short of your target.
Saving Money with the a Realistic Vision of the Future and Also the Present Possibilities
Therefore, the easy ways to save money is always about systematic savings made with a realistic vision of the future and also the present possibilities.
This is how effective goal setting can go a long way in enhancing your savings in a constructive manner.
This method of savings ensures that saving money never becomes a burden on you and you are able to always add to your savings little by little.
The smallest of money that you keep aside can often yield great results, thanks to the laws of computing.
Additionally, it is very important to maintain disciplined savings record.
It is not sufficient to just calculate how much money you need to save; you have to work towards ensuring that you actually do that.
One of the best and most sustainable ways of savings is being strict with yourself and not allowing any leeway for potential slip ups and any kind of shortcuts.
Discipline is really a cardinal word in both creating a savings target and also sticking to it.
Once that is done, we guide you on some simple ways of how to save money.
1. Keep Your Savings in the Bank
We all have a different approach to savings. Some prefer a piggy bank, and some could be comfortable in stashing them aside in their safe. But keeping your money in the bank is one of the easiest ways to save money.
Not only is your savings more secure there and not prone to theft, but a bank also allows you to enjoy several perks and helps your money grow.
Even the basic type of savings account will yield you a certain minimum interest.
So the smallest penny that is added to your account is your gain.
Moreover keeping your money in your bank account would mean that this savings is accounted for and you can also use a part or whole of it to claim tax benefits and many other facilities like bonus for new customers and the like.
You can easily compare all the available alternatives that you might be having and go ahead with the option that is best suited to address your needs.
Also in case, you have an account, it always helps to look out for other bank accounts that might offer a more attractive interest rate or better terms of operation if you save your money with them.
The trick is to keep your eyes and ears open all the time.
2. Do Your Research
One of the best and fastest ways to save money is to do the research on your own.
Do not just go by the herd mentality.
Do not go and invest in a particular savings instrument because your neighbor suggested so or perhaps your brother earned a lot.
It is always important to do a thorough research on your own and decide the most effective channel of savings your money on your own.
Think hard about all the possible savings tools that are available to you and then take a call on the kind of returns that each one offers.
It is always wise to go for an option that offers the best possible returns from your perspective.
Do not just choose a savings tool that others might have used.
Remember that one man’s poison could be another man’s cure.
That is the advantage of doing your own research.
Not only you are more in control of how much return you can earn, but also this gives you a better idea of the kind of instrument that you need to choose to get the kind of returns that you require to save money in a better and more efficient way.
3. Clear the Clutter
You can also save money by clearing away unwanted things and clutter around you.
Sometimes you would realize that you might have 3-4 old mobile phone sets that you do not use any longer but are in good shape.
So stop stacking them any further.
It is always a great idea to go sell them to people who might need it and are looking for some.
Thankfully, you have many websites now where you can sell used products.
Not only does it help you in clearing clutter but using the money to save more.
Another list of products that fall in this list is the collectibles.
I am sure, over a point of time you might have accumulated many such collector’s items too that you do not require any longer.
It is a very good idea to take stock and get rid of these at the earliest.
It helps you in clearing the mess and also earns some money from investments in past that hold no value anymore for you.
Often this whole exercise also helps you take better stock of your needs and expenses.
One of the other ways to make and then save some free cash is selling the relatives’ and friends’ things that they don’t need.
You can ask them to give you the things they don’t need, from the gardening tools and machines to toys and shoes and clothes.
You don’t have to tell them what you want them for.
Just tell them that you need the stuff for some reason.
They don’t need those stuff, so they don’t care.
Then you can sell them online through the sites like Kijiji and Craigslist.
It becomes a lot of money.
You can then save it in your bank account.
4. Don’t Spend Your Bonus
What do you do when your company pays you a bonus?
How do you spend a big amount that you got as an inheritance or may be a savings maturity?
Well, the guide to all those sudden windfalls that you get is quite simple.
You should just go ahead and save it.
Look at the most effective means of saving this money and invest it there.
Do not use this amount for spending.
Remember your spending and expenses were being taken care of even without this additional amount.
Moreover, it never helps if you think you will spend now and save later.
Just imagine how much return the money that you spent now could have yielded in future.
There is no limit to spending, but savings almost always get side-stepped.
This is exactly why when you get a windfall or sudden inheritance, the best approach is to re-invest and enjoy the returns that the principal yields.
It is never wise to use up your entire principal and save nothing for the future.
5. Discount Coupons
Let’s get one fact straight.
Savings is a lot about cutting down expenses also.
Keep a note of the various discount coupons that you can avail of and the many reward programs that you would qualify for.
While you might not realize it on per spend, but the fact is all these small savings that you make on every set of purchase will eventually add up to your net savings in the long run.
Moreover, the benefit of your reward programs is that this is not just a one-time savings.
For every purchase that you make, you earn loyalty points, and these can mean significant savings over a point of time when the time comes to redeem these points and cash in on your savings.
It can often surprise you about the amount that can add up when you keep saving little by little.
Look for deals which allow your cash back too.
Probably you do not realize, but even $1 cash back and 100 such transactions would mean $100 gain.
Think how much time and effort is required to save the same amount of money.
This will enable you to then value these savings and profits a lot more than you would have done otherwise.
Additionally, the interesting aspect of these cashback deals is the fact that they mean dual savings.
First, you save by buying a discounted product and next you earn cash back.
Therefore, this always helps you to maximize your net savings.
However, it does not happen overnight.
You have to undertake research, keep note and remember to execute the deals at the right place in the right manner and most effectively as well.
6. Look at Making Gift Rather Than Buying It
Perhaps you do not realize it, but the expense is quite a significant bit of your entire monthly budget.
Now imagine if you could make these gifts instead of buying, you would be able to do it all in perhaps one-third of the total cost and also better customize it as per the person’s preference you are gifting to.
You serve a dual purpose with this exercise.
Not only are you able to cut down on the expense part but also your gifts become a lot more personal and can make a better and bigger impact.
People would be so thrilled that you took the effort to make them a gift instead of buying just about anything over the counter.
Additionally, making a gift will cut down costs so drastically that for the same amount that you spent to buy one person’s gift will now be sufficient to buy gift materials for 3-4 individuals.
Now add the extra amount to your monthly savings and look at the difference.
You will be surprised by the outcome of this tactic to save money.
7. Stick to Your Shopping List
Of the many ways to save money is about having a disciplined approach in your overall spending.
Have you ever realized how you often end up spending a lot more than you budgeted for?
One simple way to solve your overspending trend is to create a shopping list.
Always ensure that you make a shopping list and stick to it.
Not only will it cut down wastage but also ensure that your expenses stay within budget.
Perhaps you do not realize, but the wastage associated could also be the best ways to save money.
Let’s face it; it happens with all of us.
When we see a particular thing in the shopping mall, we feel that it could be of great utility but when the thing ultimately lands on to our kitchen counter, it remains to lie there for the longest possible time, serving no purpose at all and finally often it get thrown.
So the best way to cut down this additional expense, as well as the resultant wastage, is undoubtedly sticking to a plan and buying strictly according to your shopping list.
8. Save Money on Utility Bills
If you are wondering about how to save money fast, let me reiterate again, saving money is a lot about cutting down cost and in this regard, the utility bills that we get every month play a very crucial role.
Closely analyze your utility bills, be in the electric bill, the heating charges, the phone bill or any other miscellaneous services.
Think about what all expenses you have incurred and make a point by point note of how much money you can save by being careful with your usage.
Simple acts like switching off fans and lights when not in use, using energy efficient appliances and light bulbs, using the dishwasher and washing machine on full load and many such related services can help you make a significantly large saving over a point of time.
It is possible that initially, you might not even take note of the kind of savings that you are making but patience is a key.
Over a longer period, say 6-8 months, you will be able to get a much clearer and distinctly lower utilities bills by observing simple conservation policies.
The added benefit is you are also doing your bit towards reducing carbon footprints in the environment.
One of the best ways to save money on gas is using the programmable thermostats that can save you as high as $200 per month in winter.
You can program it to lower the temperature at morning when everybody leaves until an hour before you return.
It doesn’t make sense to keep the house warm for several hours during the day when nobody is home.
It is the same with your office.
You can program it in summer to turn off the cooler when nobody is home.
Believe or not, but if you do it properly, it can save you several hundreds of dollars every year.
9. The Savings Instrument
The savings instrument that you choose can play a crucial role in your quest towards saving money fast.
While we all know that systematic savings will yield steady returns, I am sure none of you mind a few thousand extra in your savings kitty.
The good news is achieving it is not that difficult.
The only problem is you have to be careful in terms of the instruments that you choose, do a full-fledged research and undertake the complete analysis of the risk associated.
Well, you must have heard that to save money fast, you need to have a higher risk exposure.
The more money you make, the higher the risk exposure goes.
While that is not entirely wrong, even conventional and low risk investment instrument can also yield significant returns.
The trick is tapping them in the right manner and investing in a disciplined way.
You must remember that you need to take a comprehensive view of the returns vs risk ratio.
Only that will be able to justify the exact wisdom in choosing a particular instrument over another one in the long run.
For example, if you choose stocks to save money, look for the dividend paying counters.
In that way, you earn both ways, when the stock price goes up and also the regular dividend that the company might be offering you.
When you choose mutual funds, go for the ones that have given higher returns over 10-15 years period. Do not just choose an instrument because someone suggested it to you.
It is very important that you closely calculate the average returns and also choose an instrument that gives you the option to save systematically in a phased manner.
10. Start Paying off Debt
I am sure that you already understand by now but let me reiterate, the best way to save money is most importantly saving your unnecessary expenses.
Debt in this regard plays a big role.
Think of the amount that you pay off every month as just interest on your debt.
While the principal that you used as loan or credit card expense could serve as instant gratification, think of the amount, you could have saved by not paying the small installments due every year for the past ten years.
Often the amount that you get is huge, and it can be often shocking.
So start the practice right now.
Start paying off all your debt in a systematic fashion, avoid the use of credit card as much as possible.
It is a huge temptation no doubt, but over the longer term, you will only lose more money in that process.
If you can afford expenses of $500 only every month, so be it.
Do not get into the trap of credit cards and incur unnecessary debt.
They are almost the easiest ways to get into a bad debt and questionable financial quagmire in years to come.
11. Time Your Shopping Sprees
An interesting way to save money could no doubt be taking advantage of the sales and buying when you have discount offers.
But the problem is many times, you have to do with improper quality, unsatisfactory designs and as a result, spend a lot more in buying from non-discounted items.
One simple option could easily be choosing to buy just after the holiday season is over.
Demand is unusually low, and often you get great options at a significantly large bargain.
This is often because the season just went past and people would not need any of these holiday supplies right then.
Shopkeepers, on the other hand, have to make do with additional inventory, and they do not mind parting with as many as they can, even on a slight discount.
So while your Easter egg decoration kits could cost the moon, the day before Easter, a day after it is only good for next year and is available at a rather huge bargain.
Therefore, all you need to do is plan ahead and shop in a manner that can help you earn the maximum returns or take advantage of as many offers as you can.
12. Pay Attention to Your Health
In the list of best ways to save money, are you wondering why I am mentioning health?
Well, I am sure you have heard the old saying that talks about ‘health is wealth’.
Well indeed think about the amount of money you can save every month by cutting down your health expenses every month.
You can help save a lot more by paying more attention to your health, conducting regular health check-ups and living a disciplined life.
This ensures that your expenses towards your health are much lesser and savings a lot higher.
Therefore, the best answer to how to save money would be undoubtedly maintaining a disciplined and prudent approach in not just the way you save money but also in the way you handle your expenses.
An analysis would reveal that you can save a lot more money by cutting down expenses rather than trying to invest more than you can afford to.
Moreover, trying to save money in an unrealistic fashion could also result in compromising your current expenses.
So, one of the best ways to save money would be to balance your expenses and investments in a well structured manner with a comprehensive view of the future needs.