Whether you are saving for a purpose or trying to develop ways to help you save on the long run, you’re come to the right place. I’m here to share with you some strategies on how to save money.
If you’ve been following this blog you know that I have a purchase list and I’m always on the hunt for specific items. Some, brand new just waiting for the right price point, some on the second-hand market as they are no longer produced. It’s no secret that this is where most of my saving strategies are currently being used for. But a while back, I had made a pact with myself to buy my own apartment in NYC. That’s where I took a deep dive into my finances and realized where I stand financially and how much capital I needed to accomplish my goal. I did google how to save money a few times.
Even though my Instagram account may sometimes look like an unboxing account if two or more purchases coincide – but these are far from impulse purchases. I have taken my time into building up my closet, and I will share with you my strategy on that in a blog post sometime soon.
I hope that some of the strategies I learned along the way about how to save money, can help you as well. Whatever your goals may be, whether you’re saving for an event like a wedding, tuition, a luxury item, or real estate. I secretly hope that these strategies excite you into making saving cool again as a lifelong habit.
The way I see saving, it is in two parts. Maximize your income and minimize your spending. I do have a separate blog post on how to build wealth, this isn’t that. This is more about developing smaller habits with long term gain. It’s a way of thinking if you will.
This blog post is all about how to save money. Strategies that overtime will help you have better spending habits. I hope it helps.
PART I – YOUR INCOME
#1 MAXIMIZE YOUR INCOME
I know this isn’t easy. But look around for the average salary a person makes in your area and consider sitting down with your boss to have a discussion about the possibility of a raise. Look for a new job if you have to. Don’t stay in your comfort zone just because it’s easy. You should be paid fairly for the work you do.
#2 SIDE HUSTLE
Another important thought is, how can you maximize your income? A side hustle? Try to pick up some extra work, other projects, freelancing opportunities, overtime work/ shifts, babysitting if those are options for you. These might not be a big stream of income at the beginning but as a freelancer for instance, people might hear about you over time and you can get more gigs down the road. Consider working extra during holiday seasons when you’re spending more money on purchases or gifts. There are places that hire on the basis of shifts during high season, like restaurants and stores.
#3 GO THROUGH YOUR CLOSET
Turn everything you don’t need into cash. Open a Poshmark and Vestiaire account and sell the things you’re not wearing. Don’t normalize holding on to things you don’t need, even if you have the space for it. I have shared my entire Poshmark strategy here for you and here, if you’re interested in starting to sell things. But the key is to link it to a bank account so as soon as you’re paid, you transfer out the funds and it doesn’t become credit towards your next purchase. For years I had a separate savings account just for the things I sold, it got me motivated to continue selling and I never spent it back in those apps to buy new clothes. It is a lot easier to buy when you’re using credit than when you’re using your own money.
Note: As you go through your closet, learn what you’re spending excessively on and make it a point to not purchase those items anymore. Do you have a selection of blazers, sweatshirts or sandals? Whatever that may be, keep track.
#4 TRANSFER FUNDS EACH TIME YOU AVOID AN EXPENSE
Let me explain. Each time you avoid an expense, meaning you didn’t buy that latté or go out for dinner, transfer the funds to a separate savings account where you can see the money you saved. Saving is hard and it isn’t fun, it’s a bit of delayed gratification kind of situation. So, in order to see results and turn this as gratifying as possible, transfer the funds you didn’t spend into a separate savings account to see how much you are saving.
Note: You don’t need separate savings accounts for each strategy. You can open one extra savings account to keep track of all your efforts, that should be sufficient.
PART II – YOUR EXPENSES
#1 GO THROUGH YOUR CREDIT CARD BILL
Every month, go through your expenses. There are many apps out there that can track your expenses, and show you a grid of the sum or percentage that you have spent in each category. Ditch those. Switch your credit card statement into a calendar month billing cycle by calling your credit card issuer/ bank. You don’t want your monthly statement to start and end in the middle of the month. The closest you can get it to end at the end of each month is how you can track your expenses. Go through each expense and group them yourself into groceries, eating out, shopping, transportation, etc. This will help you see where your money goes and what you can do to improve your finances. You might think what could you possibly gain from this, and yes it is a bit of a chore. But trust me, sitting and going through each expense and writing it down makes you think about your habits and identify weaknesses you have a little more.
#2 AUTO-PAY
Another point that has to do with your credit card. You probably know that credit card companies’ favorite customers aren’t those who make payments on time with auto-pay. Why? Because they don’t earn as much from those individuals. Their favorites are customers who make minimum payments and accrue over 20% APR on their debt. I share this because I want you to set your full payments on auto-pay. There is something about making this commitment, once you set it, you are no longer allowed to spend or withdraw money carelessly. There is a payment that needs to be made, so you are subconsciously always aware of that responsibility.
#3 CUT RECURRING EXPENSES
Do you need Amazon prime? Not an absolute necessity, you can still get free deliveries without paying extra. Do you need 5 streaming companies at the same time? It is possible that you aren’t even aware of how many subscriptions you have. Going through your credit card statement, you will figure it out. But think critically about all those subscriptions you have and if they are contributing to your life in any way. You might think your ad-free music plan through Spotify is so important, and there are some great benefits to it. But that’s 11.99 USD/ month, which is 143.88 per year and 1438.80 over 10 years, which you might have paid already (and still paying). I don’t consider that an important luxury to have. If you multiply those numbers for each subscription you have, you can see how much you are spending overall for your entertainment. If this is so important to you, by all means, enjoy!
#4 NO SPEND DAYS OR MONTHS
This works but you got to stick to it. Having a no spend day once or twice a week, can help bring expenses down. This can be for anything and everything, you have to go for a full day without spending money. Or you can choose to have a no spend month, in which you don’t go shopping. Whatever is your weakness, you can tailor your no spend day or month to that. I did a no buy month for two months in a row one time and it was insanely difficult but so rewarding. It was very eye opening to realize how often we want to buy something new.
#5 PACK LUNCH
I know, for many this is an unpopular opinion, but either way paying for food or even worse delivery fees each time you want to eat is ridiculous. As you go through your credit card expenses, keep track of your spending habits on take-out and deliveries. Take it a step further by prepping lunch at home and then compare your expenses. Sometimes seeing how much you saved can really help you get on board. If you eat more than a meal at work, some people have three meals at work depending on how long their day is, this can make a huge difference.
#6 DON’T RELY ON CREDIT CARDS
This is a bit of a side note, not so much related to saving, but an important one so bear with me. In the US, you can apply for a credit card before you are allowed to consume alcohol. So, people can have a bad credit score from mistakes they did when they were really young. Regardless of your past, I think it’s really important to develop a mindset of saving money and having the funds for big purchases. You want to buy an iPad, or a luxury handbag? Sure, you can do all those things, just save money and have the funds ready in your account first. This will help you avoid paying your bank any interest.
This blog post is all about how to save money. Strategies that overtime will help you have better spending habits. I hope it helps.
As always, thank you for stopping by and reading. If this type of content interests you, please follow my IG account @girlontheues
See you next week,
Girl on the Upper East Side
Xx
If this interested you, you might want to read my blog post on how to build wealth, how to buy an apartment in NYC, and how to keep New Year resolutions.
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