There are a lot of things in life that we need to buy, even if we don't want to. There are also the things we want to buy, but don't need to. Either way, it's always a good idea to learn how you can be spending the least amount of money on all of the things you purchase.
1.) Cut Back
This is an obvious one. Cut back on the things you buy, and you'll spend less. Everyone knows this will save you money, and yet so many people can't actually practice it on a daily basis. When you're cutting back, you want to start small. Make a goal each month, and continue to have the goal get harder and harder. Over time you start to naturally spend less money. Always be looking for something to save money on and improve on, and then make it a goal for the next month
2.) Have a Financial Plan
Every household needs a detailed plan of where there finances are. You want to have all your bank information, credit card information, income, and expenses all organized. After you have all of this information in order, you can make a financial plan. Knowing how much you earn, you can split your income into different categories. What you want to do is take a certain percentage for each category out of your income, and continue to do this every paycheck. This will force you to spend a certain amount, invest it, put the money away for unseen expenses, or simply save it. Splitting your money up also helps you know how much you can truly spend without spending too much. If you have a set amount in the account, you can't spend more even if you want. This makes it a lot harder to impulse by as well.
3.) Buy for Less
If you still want to spend money and treat yourself, there's still a way. There are many stores out there that offer used clothing, electronics, and any other type of product you might want to be looking for. You can also shop at clothing stores that offer clothes that companies messed up on when in the production process. This doesn't mean the clothes look terrible and don't fit, it just simply means there's a small mistake in the stitching or something minuscule that prevents it from being sold it stores. This is a great way to get brand name clothing for a lot less, and no one can tell the difference. You can also go to Craigslist to shop for a practically brand new things that people are locally selling in your community. When you're purchasing something from Craigslist or a website that's similar, make sure you are getting what you pay for. If it's an electronic make the seller test it out fully and show you every aspect of it. This will insure that the seller has nothing to hide and you are getting a fully functional product that will be worth nothing in two days.
4.) Use Credit Cards Wisely
Don't keep adding debt if you are already currently buried in money that you owe. Make sure you are using the cards with the least amount of interest, and making the right kind of purchases with a credit card. You want to avoid using a credit card in general so you are only paying for the product you are buying, not the extra interest that keeps getting added on. What you can also do if you have credit card debt is to move the debt onto a different card. If you have a credit card with a lower interest rate, then simply move the debt onto the card. You will end up paying a lot less than you would have, and if you are able to make the payments each month, then you won't be damaging your credit score. You can also use credit cards in your advantage. If you use Fidelity, they will put 2% of the amount you've put in Fidelity Investments, and put it in an account for your child's college fund. Credit cards can be a good thing, but only if they are used correctly.
5.) Food Stamps and Coupons
Saving up on food stamps and coupons will make a major change the amount you spend for the things you continually buy every month. If you continue to look for coupons online, in magazines, and at the store you will be stunned in how much you continue to save. Single coupons by themselves won't make a major difference, but together, coupons can save you hundreds of dollars. If you are spending $200-$300 every time you go grocery shopping, then start cutting coupons and food stamps. If over few weeks to a month in between shopping trips you searched for additional coupons and food stamps, you would be amazed. Just by finding the right coupons and spending the couple minutes every day, you could lower that $200-$300 to around $50-$100. If you save around $100-$150 every month on groceries, that would be $1,700 per year! That could be used to go on a vacation, put towards a child's college fund, future groceries, etc. The possibilities are endless.
6.) Live Below Your Means
This is a very hard thing to force yourself to do. When you have money you could spend, you just want to spend it. That's how most people are. Make a goal to live below your means. Before you know it, it becomes a habit and you don't even have to try to do it and it just becomes a lifestyle. Just stick the extra money in an account you can't see or access, and then wait for it to grow. Even better yet, stick it in some investments. Take the money that is just sitting around, and make it make you more money!
If you wisely invest the money you would have originally spent, you can relax and know that you are preparing yourself for your future. The best part about living below your means, is that it really isn't as hard as you think it will be. People get caught up in trying to get the €latest and greatest€ when they can't even afford it. If you live below your means while saving and investing the money you would have spent, you will end up having a large amount of wealth. You will be able to appreciate the things you get to treat yourself with because you didn't have them before.
After not buying most of the things you want and don't need, you'll know how to save money a lot more efficiently. Not only will you be able to treat yourself, you'll have more than enough money to afford it. Spending less money is a lot easier than you think it will be. You just have to learn how to make living below your means a habit and a lifestyle. After you continually save and invest your money, the money will start to come to you. You'll learn the true value of money as well as learning how to take the smart path of managing your finances.
1.) Cut Back
This is an obvious one. Cut back on the things you buy, and you'll spend less. Everyone knows this will save you money, and yet so many people can't actually practice it on a daily basis. When you're cutting back, you want to start small. Make a goal each month, and continue to have the goal get harder and harder. Over time you start to naturally spend less money. Always be looking for something to save money on and improve on, and then make it a goal for the next month
2.) Have a Financial Plan
Every household needs a detailed plan of where there finances are. You want to have all your bank information, credit card information, income, and expenses all organized. After you have all of this information in order, you can make a financial plan. Knowing how much you earn, you can split your income into different categories. What you want to do is take a certain percentage for each category out of your income, and continue to do this every paycheck. This will force you to spend a certain amount, invest it, put the money away for unseen expenses, or simply save it. Splitting your money up also helps you know how much you can truly spend without spending too much. If you have a set amount in the account, you can't spend more even if you want. This makes it a lot harder to impulse by as well.
3.) Buy for Less
If you still want to spend money and treat yourself, there's still a way. There are many stores out there that offer used clothing, electronics, and any other type of product you might want to be looking for. You can also shop at clothing stores that offer clothes that companies messed up on when in the production process. This doesn't mean the clothes look terrible and don't fit, it just simply means there's a small mistake in the stitching or something minuscule that prevents it from being sold it stores. This is a great way to get brand name clothing for a lot less, and no one can tell the difference. You can also go to Craigslist to shop for a practically brand new things that people are locally selling in your community. When you're purchasing something from Craigslist or a website that's similar, make sure you are getting what you pay for. If it's an electronic make the seller test it out fully and show you every aspect of it. This will insure that the seller has nothing to hide and you are getting a fully functional product that will be worth nothing in two days.
4.) Use Credit Cards Wisely
Don't keep adding debt if you are already currently buried in money that you owe. Make sure you are using the cards with the least amount of interest, and making the right kind of purchases with a credit card. You want to avoid using a credit card in general so you are only paying for the product you are buying, not the extra interest that keeps getting added on. What you can also do if you have credit card debt is to move the debt onto a different card. If you have a credit card with a lower interest rate, then simply move the debt onto the card. You will end up paying a lot less than you would have, and if you are able to make the payments each month, then you won't be damaging your credit score. You can also use credit cards in your advantage. If you use Fidelity, they will put 2% of the amount you've put in Fidelity Investments, and put it in an account for your child's college fund. Credit cards can be a good thing, but only if they are used correctly.
5.) Food Stamps and Coupons
Saving up on food stamps and coupons will make a major change the amount you spend for the things you continually buy every month. If you continue to look for coupons online, in magazines, and at the store you will be stunned in how much you continue to save. Single coupons by themselves won't make a major difference, but together, coupons can save you hundreds of dollars. If you are spending $200-$300 every time you go grocery shopping, then start cutting coupons and food stamps. If over few weeks to a month in between shopping trips you searched for additional coupons and food stamps, you would be amazed. Just by finding the right coupons and spending the couple minutes every day, you could lower that $200-$300 to around $50-$100. If you save around $100-$150 every month on groceries, that would be $1,700 per year! That could be used to go on a vacation, put towards a child's college fund, future groceries, etc. The possibilities are endless.
6.) Live Below Your Means
This is a very hard thing to force yourself to do. When you have money you could spend, you just want to spend it. That's how most people are. Make a goal to live below your means. Before you know it, it becomes a habit and you don't even have to try to do it and it just becomes a lifestyle. Just stick the extra money in an account you can't see or access, and then wait for it to grow. Even better yet, stick it in some investments. Take the money that is just sitting around, and make it make you more money!
If you wisely invest the money you would have originally spent, you can relax and know that you are preparing yourself for your future. The best part about living below your means, is that it really isn't as hard as you think it will be. People get caught up in trying to get the €latest and greatest€ when they can't even afford it. If you live below your means while saving and investing the money you would have spent, you will end up having a large amount of wealth. You will be able to appreciate the things you get to treat yourself with because you didn't have them before.
After not buying most of the things you want and don't need, you'll know how to save money a lot more efficiently. Not only will you be able to treat yourself, you'll have more than enough money to afford it. Spending less money is a lot easier than you think it will be. You just have to learn how to make living below your means a habit and a lifestyle. After you continually save and invest your money, the money will start to come to you. You'll learn the true value of money as well as learning how to take the smart path of managing your finances.
SHARE
