In today's economic climate, knowing how to save money is more important than ever. These seven tips will tell you everything you need to know about all the easy ways you can double, even triple your savings in just a year.
1. Open a high-interest savings account.
This is by far the easiest way to watch your savings grow without lifting a finger. A high-interest savings account, such as many of the savings banks available online, will offer an interest rate of between 2.0%-4.5%, substantially larger than those of brick-and-mortar banks who like being stingy with the interest they give on their savings accounts. Many accounts will let you begin with just a $100 deposit, and most will let you start with even less. The important thing is to keep the account active, by depositing an amount of money every month. It doesn't have to be a large amount; as long as you're putting something in regularly, your savings will have a chance to take advantage of exponential growth- one of best, and most underrated ways to develop wealth.
2. Cut back on non-essential spending, such as shopping splurges and expensive foods.
This is the tip many people seem to have a bit of trouble with. When someone's become accustomed to buying everything new and wanting only the nicest things, the habit becomes dangerously expensive. But as this piece explains, cutting back on spending and putting more into savings does not mean you have to live a miserly existence. Oftentimes, the most savings and the best ways to save money come from the smallest and most convenient sources. For example:
3. Buy storebrand foods.
Storebrand foods are often significantly cheaper than their namebrand counterparts, but that doesn't make them lower in quality. Most of the time, storebrands are made in the exact same factories as namebrands, which makes them excellent places to start saving your money. Simply buying storebrand foods instead of namebrands can shave tens and hundreds of dollars off your monthly grocery bill.
4. Only buy on sale or with a coupon.
My mother always told me that there was no reason to buy anything if it wasn't on sale, and I've found that she's right. Whether it's clothes, shoes, furniture, school supplies, or anything else you can think of, 99% of the time it will go on sale or has been on sale in the past. There is no real reason to ever have to pay full price for something, as long as you look for the sales and clip coupons when they become available. There are many websites that compile lists of coupons to use at retailers, and supermarkets distribute circulars in local newspapers chock-full of coupons to help you save even more on your grocery bills.
5. BUT, don't buy something just because it's on sale.
Ten jars of tomato sauce for five bucks might be a great deal if you love tomato sauce. But if you'll never eat all of it, it's still a waste of money. A sale isn't a sale if it's making you spend money you wouldn't have spent otherwise, so fight the temptation and only take advantage of sales or buying in bulk when it's something you will genuinely find use for.
6. Save money by being environmentally conscious.
Doing things like shutting the water off while brushing your teeth, turning off the lights when you leave a room, and changing all your lightbulbs from incandescent to fluorescent are not only great for the environment, but provide huge benefits for your wallet, as well. Each of these things saves you money by making your monthly bills smaller, and you can use that difference as part of the monthly savings deposit to make it do even more for you.
7. Finally, save your change.
This tip is one of my favorites! Whenever someone asks me how to save money, I always have to mention this one. Keep a jar on a table somewhere convenient where you put all the change out of your pockets and wallet at the end of the day. Whether it's just a few pennies or a handful of quarters, dump it in the chnage jar. When my jar is full, which generally happens every few months, I find myself suddenly $50 richer just from all of that collected change that I never missed. This is also an easy and fun way to start teaching your child the benefits and joys of saving money!
By following these seven tips, you will be well on your way to saving the most money you can. Learning how to save money can be a process, but the rewards are bountiful and easy to reap, as long as you are patient and willing to tweak just a few of your regular habits. Soon enough, saving money will be something you do without even thinking about it, and your money will do all the work for you!