Are you interested in saving money? I hope so! If you can save $100 a month, that’s basically the same thing as making an additional $1,200 a year! I bet you could think of something that you’d like to buy with that extra $1,200. Or, maybe you’d like to invest it and turn it into hundreds of thousands of dollars by the time you retire. Or, perhaps you’d like to build up your savings accounts. Let’s figure out how to turn this idea into actual greenbacks in your pocket!
1) Use Cash – It’s a pretty well-known fact that when you use cash, you spend less than if you use a credit or debit card. Why is this? Because you can actually see the money that you’re dishing out for those goods or services. Suddenly, it becomes much more painful when your $200 makes its way down to $0 in a matter of days. If you were paying for your goods with credit, you most likely wouldn’t even realize how much you’ve spent over that same time-frame.
2) Learn to Barter – This is nearly a lost art, but there are still some people that utilize the power of bartering. Right now, I’m selling my Jeep. Let’s say that I have an interested party that only has $4,000, but I’d like to get at least $6,000 for it. Many buyers would just walk away from the deal with their head down, but the savvy buyer will find some items that may be of value to me in order to make up the difference. Maybe they’re in the siding business and can make up the difference by siding my house. This would more than make up for the $2,000 gap (which would be a win for me), and the buyer no longer had to come up with more cash! Sometimes bartering is a great solution!
3) Take Your Eyes Off That New Car – Sure, it would be cool to drive one of those new cars, but for most of us, it’s just not worth the cost. Did you know that a typical new car will lose 60% of its value in the first 4 years of ownership? That means that if your new ride cost $25,000 when it was brand new, you’ll lose $15,000 by the time 4 years go by, and that’s if you paid with cash! If you bought a new car on the payment plan, you’ll lose $16,000 or more! The best buy is always a gently used car that’s 4 years old or older.
4) Have Fun With Cheap Activities – Good times don’t always need to have a high price tag. In fact, many of your best memories are probably from spontaneous events that cost practically nothing! Outdoor activities are some of the best freebies. Head to the beach, have a picnic, play tennis, beach volleyball, shuffleboard, shoot some hoops, or play some Frisbee. You can have plenty of fun inside too. Play cards, get out those board games, watch a free movie online, or maybe even read a book!
5) Keep an Eye on Those Sale Papers – Even if you don’t buy the newspaper, you probably still have sale papers delivered to your door. Take a careful look at these sales before heading out the door to get your groceries. By keeping your list general (such as “meat” instead of “chicken” or “snack” instead of “Nabisco crackers”), you can probably meet all of your grocery needs with sale items!
Follow these 5 ways to save money and you’ll soon notice your bank account beginning to grow! Good luck!
How do you save money? What suggestions would you have other than the five I listed above?
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.