The "save money, live better" philosophy that you see companies like Walmart promoting, generally revolves around the idea of spending. If you buy more stuff at discount prices, so it goes, you'll be better off.
However, what you spend is only a small part of the equation when it comes to saving and living better. In the following article, we'll be giving you a guide for how to budget and make the most of your current financial position. Let's begin!
1. Track Your Expenses
Your first tip for learning how to save money is knowing how you're currently spending it. Where is the lion's share of your income going?
- Groceries?
- Eating out?
- Clothes?
- Entertainment?
- Bills and debts?
- Garnished wages for things like child support, alimony, and tax settlement?
2. Know Your Income After Taxes
Before learning more about the ways to save money, it's time to get a handle on your income. There are two numbers that are important to you if you're a W2 employee: your adjusted gross income (the amount that's taxable), and your net income (what's left after taxes).
You can make moves to reduce your tax liability and should, by all means, explore that. At day's end, however, the only amount that matters for handling the day-to-day operations of your life is net income.
This is what you have left to play with and live on. Learn it before you burn it.
3. Capitalize Through Special Offers
Another method of how to save money fast is to capitalize on special offers and incentives. You can do this by saving those coupons and circulars you get in the mail or joining rewards programs at grocery stores and restaurants.
Then, make it a rule of using any coupon you can find for groceries. Likewise, since we all know you're going to occasionally eat out, only eat at restaurants that have special offers.
You can apply these methods for bigger purchases, too, such as cars and furniture that you may need to be buying later on the horizon. Lastly, use special promotional offers to reduce the amount of interest you're paying on high-interest debts or consider refinancing.
4. Automate Savings
Saving money doesn't have to take a lot of effort. Make sure you're capitalizing on pre-tax retirement accounts or round-up spending apps linked to your debit card. Both methods can ensure you're saving money without making any extra efforts.
5. Find Ways of Easing Your Stressors
Want some money-saving tips that'll change your life? Target the financial stressors, like paying bills. Automating this process through your bank will ensure you have less to worry about when it comes to hitting those due dates on time.
6. Reexamine Health Expenses
If you're a senior, all you have to do is look at the Medicare leads market to see the opportunities that are out there for saving money. In other words, there are people out there competing for your business on Part B plans waiting to save you money.
Younger people might consider going for a less comprehensive coverage plan to ensure some form of protection against unforeseen medical expenses, enrolling in an employer-sponsored plan, or staying on Mom and Dad's policy until the age of 26. All of these scenarios may save you money on what is becoming your largest expense.
The 'Save Money, Live Better' Motto Will Transform Your Life
There are many ways to "save money, live better," that go beyond buying up a store filled with deeply discounted items. Look at your financial resources, spending habits, and money-saving opportunities and you'll be well on your way.
For more frugal tips, check out some of our additional frugal finance posts! Save money live better by being frugal no matter your budget!
