In this blog post I am going to answer the question on how to save large amounts of money. If you find any of this information helpful then please send it to a friend.
How To Save Money
I am writing blog post around questions that are being asked frequently. The way to go about saving large amounts of money is to basically not spend any of it. That means every paycheck that you receive or any money is put directly into savings. The ones that are going to benefit the most from doing this is the ones that have no bills and are probably in high school. If you are attempting to doing this while in college then make sure that you utilize financial aid or scholarships that pay for school and extra stuff.
If you are trying to achieve this as an adult that has bills, credit card debt, family, etc then you are going to have to take the route on budgeting and slowly building your savings over time. There is no secret way to save money fast or obtain it. This is why the youth need to learn how to save money and be good about it because it will benefit them a lot later on.
So to recap on the question, if you want to save lots of money fast then not spending any of your earnings will help you do just that.
Advice From Others
Below is a bunch of advice from users of Reddit that give their take on saving money. I include this type of stuff in my post because multiple advice can really help readers when it comes to personal finance.
Make a goddamn spreadsheet
Seriously. Hop into Google Docs or Excel, and just make a list of income and expenses.
And I mean every expense. Netflix, Internet, Bills, Rent, Food, Groceries, Gas, Coffee, if you buy a candy bar for $1.50 I wanna see that fuckin thing on your spreadsheet my dude.
Reason being people don’t realize how much daily expenses add up. Lets say you work 5 days a week, and buy lunch every day. Lets be very conservative and say you spend $5 on that lunch.
That means at the end of your work week, you’ve spent $25. That could have been gas for half your week or so.
After a month? That’s $100. You could have gotten a brand new video game and the season pass.
Once you see a spreadsheet of everything you buy in a given month, you see real quick where to cut back.
Biggest expenses in my experience (based off my friend group): Going to bars, buying alcohol, buying cigarettes, going out to eat instead of cooking at home.https://www.reddit.com/r/AskReddit/comments/9jmy7q/what_are_your_top_hacks_to_save_money/
What makes YNAB unique is their principle of “every dollar has a job.” They don’t believe in budgeting ahead, they teach budgeting what’s already in your bank. So, for example, when I get a paycheck, I divvy up that money where it absolutely needs to go before I get paid next. So, $100 towards food, $100 towards my cable bill that’s due in the next week, etc. What’s left over after the necessities goes into savings, creating an emergency fund, and/or paying off pre-existing credit card debt. Then when I get my next paycheck, same thing. Divvy it up only for what I need for the next two weeks (or whatever your pay period is).
It was a hard thing for me to wrap my mind around, the idea of not budgeting for the future and only looking at the dollars I have now, but now it makes so much sense and it’s helped me get my finances together better than I ever had before. Their system totally works. (Keep in mind that I’ve stated a very simplified down version of their concept, haha. Obviously there’s more to life than just bills and savings.)https://www.reddit.com/r/AskReddit/comments/2c1rkf/seriouswhat_are_some_of_your_best_money_saving/
I too am working through credit card debt and I’ve done a few things to really help me save. The first thing I really focused on cutting down was money I spent on coffee. I used to get an iced coffee from Dunkin’ in my reusable cup 3-4 times a week, which was $5 a week I didn’t need to spend. Now I do it maybe once a month as a treat, and only if I have gift cards for Dunkin’. After that, I focused on my food and not wasting groceries, and making an effort to eat everything I had before it went bad. Before shopping, I would go through all of the coupons on the Kroger app (my local grocery store) and clip any for things that were a good deal or were things I was already going to buy. I also have a small list of essentials I like to have for quick meals (i.e. tortillas and cheese for quesadillas; lunch meat, bread, and cheese for sandwiches, etc). I check all of my “essentials” and add any I’m out of to my shopping list and fill in with coupon/sale food. Then, I go check clearance meat and vegetables first thing when I get to the store to plan some meals for the next few days around those items. This allows me some variety out of the cup of noodles/sandwich/eggs wormhole and also doesn’t cost me a ton. Outside of groceries, research before buying products. There’s almost always a cheaper way to get it online, especially with Chrome apps like Honey and WikiBuy. Taking time to make sure you’re buying both a quality and economical product can save money in the long run. Finally, have a few cash back apps on your phone to scan receipts. I use Ibotta, and have Ebates linked to my credit card. While it takes a while to accrue the cash-out money, it’s a nice amount of money when it comes in. You can also sign up for Google Surveys and get $2 every few weeks just for answering 3-5 quick questions from location-based surveys.
I hope that you found this blog post useful and don’t forget to send it to a friend that will also benefit. Thanks for Supporting The Finance Starter and check out other post that I’ve written below.