Most people love the idea of saving money. But these days, it can seem easier said than done. While it may be more difficult, it’s not impossible! There are many ways to save your money, especially on goods and services. Here’s what you need to know.
What is the best way to save your money?
The only real way to save money is to have more money coming in than you have going out. In other words, your expenses must be less than your monthly income.
Once you know that’s possible, you can then start saving your money. We recommend saving extra cash in a high-yield savings account and to build an emergency fund first.
To be financially free, you need to have money that allows you the opportunity to work if you want and not work if you don’t. This could be by building passive income or investing and retiring (or retiring early!).
To do this, you’ll need to save enough money. So the sooner you can save money each month and invest in your future, the faster you can be financially free.
How much should I save per month?
This depends on your current income and expenses each month. But experts generally recommend saving and investing at least 20% of your monthly income. If that’s hard to do at the start, saving just a few dollars each paycheck is better than nothing! It’s all about the consistency of your savings habits.
Is saving 600 a month good?
For some people, this may be a great amount! But saving $600 a month may not be attainable for everyone; or for some, it may be too low based on their income and lifestyle. However, if you’re not currently saving anything, $600 a month is a great goal to aspire to.
How long will it take to save 20k?
That depends on how much you can save each month! But, if you’re able to save $500 a month (or $125 a week), you can save $20k in about three years. The more you can save, the faster you can save that amount.
How can I save $5 a day?
You can save $5 a day by cutting out whatever you don’t need (at least short-term!).
For example, a cup of coffee a day from a coffee shop could equal $5. Or, maybe you have a lot of subscriptions that you can cancel that equal up to $5 a day. And even bigger purchases, like grocery shopping, can save you a few dollars here and there if you can be under budget.
However you save $5 a day, whether daily, weekly, or monthly, there are always ways to do it.
Ready to save money on the things you already pay for regularly? Here are six different ways to do it!
Think of rebates as discounts with extra steps. In order to get the discount, you need to fill out a form and send it in with proof of purchase. Rebates are most commonly used with big-ticket items like high-end appliances, electronics, and furniture.
Cashing in a rebate may sound like a simple piece of common sense, but companies are betting most consumers will never get around to doing it – and they’re right. They also make it hard by attaching strict expiration dates to their rebate offers.
All this adds significant savings for those willing to take advantage of rebate offers on big-ticket items.
It seems like every business offers a rewards program now. While you don’t want to sign up for every rewards program that comes your way, those offered by shops and services you frequent regularly are worth joining.
You usually just need to sign up with your email address or phone number, get a personal rewards code, and your purchase contributes to accumulating rewards points. Over time, these points can be redeemed at checkout for cash value towards your most recent purchase. You may be able to walk out without spending a dime.
The majority of product taxes are non-refundable. After all, taxes are the single greatest source of state revenue. The government needs that money to cover the cost of infrastructure, maintenance, and civil services.
However, if you’re spending money in Europe and live outside the continent, you may be able to get a value-added tax refund upon return to your home country.
For instance, someone from New York can get a VAT refund from France after returning from a business trip to Marseille. While it often takes months for the refund to clear, services exist that help expedite the process for a fee.
Things you never knew, right?!?
Many folks abide by the “never pay retail” code of consumerism. In essence, you never pay the manufacturer’s suggested retail price (MSRP) and instead hold out for price reductions and sales.
The best chance consumers have of not paying retail is to look for sales happening throughout the year. However, the key is to compare the sales price to the MSRP. Anything over 10% off is usually a good deal.
You also want to avoid buying something simply because it’s on sale. If you didn’t plan on buying it beforehand, then you’re not saving money!
Haggling is a lost art. It’s mostly because most retailers today are giant corporations, not mom-and-pop shops. Good luck trying to negotiate a lower price with a teenage cashier.
But when bargaining remains a viable option, like with car-buying or hiring professional contractors, consumers should take advantage as much as possible.
For example, hiring a landscaper for your lawn and garden could involve talking them down from their going rate using various incentives. It won’t always work, but it’s always worth a try.
Except for collector’s items, most products decrease in value over time.
If there’s a specific model dishwasher or laptop you’ve been eyeing the last few months, waiting a few more months to pull the trigger could lead to significant savings. By then, retailers will need space to sell the newest versions and will offer discounts on the older inventory in order to make room.
How To Save Your Money
Who doesn’t like the idea of saving money on products and services? While it’s not easy, it’s not impossible, either. It takes a conservative approach to consumerism combined with a willingness to go the extra mile to save a dollar.
Whether it’s worth it is a matter of what you’re buying and what price you’re paying, but more times than not, it’s a winning decision.
How will you save your money in the future? Always be on the lookout, and you’ll likely save a ton!
AUTHOR Kimberly Studdard
Kim Studdard is a project manager for online entrepreneurs and small businesses. When she isn't spending time with her daughter and husband, or reading her growing pile of horror books, you'll find her working on her HR degree and working towards FIRE.