Tips for Saving Money

Saving is the backbone of all wealth. If you strive for security, wealth, and prosperity, then you must learn how to save. For those who were taught as a child to put part of every gift and earnings into the bank, saving is a habit. For those more skilled at spending than saving, it’s not so easy. This article introduces some unique savings ideas. Implement these simple tips and watch your wealth grow.

Easy Ways to Save Money

Easy Ways to Save Money

1. Automate your Savings

It’s common knowledge that when you divert cash from your paycheck into your retirement account at work, after a transition period, you don’t miss the funds. Yet over time, these regular contributions grow to thousands of dollars. But, with your retirement funds, you face a penalty if you withdraw the funds before retirement.

So how do you handle saving for short and medium term goals?

An easy way to save money for short and medium term goals is through automation. I came across this free app, SavedPlus which automatically transfers money to your savings account every time you spend! Any time you can automate a positive habit, you increase your chance at success.

Your washing machine breaks, or the car needs new tires, where will the cash come from? Savedplus is the perfect tool to make sure there are funds in your emergency account. Emergency account already funded? Use Savedplus to save up for a special goal. The cool thing about this opportunity is that after linking your bank accounts and setting your own savings goal (for example, 10% of the amount spent will be transferred into your savings account) you are finished. This set it and forget it approach lets your savings build as you spend!

2. Make Saving Fun

Science proves that when something is pleasant, you tend to practice that habit more than if it’s not. Sit down with the family and brainstorm a list of affordable alternatives for fun. Everyone needs some fun and relaxation. Go skiing, out to expensive restaurants, fancy vacations and you’ll have fun, and pay the price. You can have just as much fun, without the big price tag.

A friend confided that when his kids were young, he invested in some good hiking boots and then spent week ends hiking for free. Geocaching is a free, outdoor, treasure hunting game which will consume your week ends (with fun). Not the outdoors type? Crafts with found items provide beautiful decorations and hours of fun.

When our daughter was young we built forts with pillows and used nerf balls to throw at one another. And of course there is always balloon volley ball. Cooking and baking together is great for couples and families! Now that spring is here picnics and parks are perfect free week end activities. The list of fun activities on the cheap is endless. Cut your discretionary spending budget and have fun.

3. Gratitude Journal

You don’t usually find this one in a money saving article, but it really works. When you get the “I want, I need, I desire” bug, take a breath and pull out a journal. Spend a few minutes listing everything you are grateful for. The list could be as simple as; my family, friends, health, car, home etc. Or you can get really detailed and talk about the freedom of living in a democracy, having clean air and water, having the vision to look at the trees blooming, or whatever else you can think of. This is a personal one. By focusing on what you already have, instead of what you lack, you shift your perspective to appreciation instead of need. Get in the habit of changing your outlook, boost your happiness and cut spending.

Spend less on unnecessary items and bank the savings. Your wealth will build.

What are your saving strategies?

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  1. krantcents
    May 14, 2013 | 2:56 pm

    I make my savings automatic using a payroll deduction. I have used this method for 40+ years. It started when I was very young and bought my first house. I was worried I would not have the property taxes when I had to make the payment. I set up a deduction to cover all of the annual payments. Eventually, I added savings for retirement and general investing.

  2. Barb
    May 14, 2013 | 5:30 pm

    @Krantc-Isn’t time the best friend of investing? Starting early is the best kept secret of wealth accumulation.

  3. KC @ genxfinance
    May 15, 2013 | 4:15 am

    I agree, if you are happy with what you are doing, especially with saving, it will only come easy.

  4. Jules@Faithful With a Few
    May 15, 2013 | 10:48 am

    Great ideas! It is so easy to get impulsive with wants and needs. I love the gratitude journal idea!

  5. Thomas @ MADD Finances
    May 15, 2013 | 11:19 am

    One of my favorites is the automation. Its gone before you even knew you had it. Another thing is starting small and gradually increasing savings without really increasing expenses. The journal would be perfect for my wife.

  6. Barb
    May 15, 2013 | 4:19 pm

    @kc- Persistence and practice lead to habit formation. Practice good habits, like saving, and wealth will follow. Of course, probably should invest a bit as well :)
    @Jules and @ Thomas- I like the gratitude journal a lot. I need to up my discipline in that area. I think about what I’m grateful for, but write less.

  7. Lyn
    May 16, 2013 | 5:26 am

    For a lady like me who spends more than what she makes, saving money is difficult. I am considering to look for other high paying job or to cut off my spending.

  8. Little House
    May 16, 2013 | 9:43 am

    Automating my savings is the best strategy I use. Next step, bump up the amount!

  9. Barb
    May 16, 2013 | 10:44 am

    @Lyn, Thanks for stopping by. Step one is realizing things need to change. Step 2, cut up the credit cards.
    @Little house- Good idea! Step up the amount saved and get used to living on a bit less.

  10. Blake Sanders
    May 16, 2013 | 11:16 am

    Great post Barb! Forgetting you even have that money coming in is the best way to save it. Funny how we still manage to get by without the extra cash.

    I put 20% of my paycheck into a retirement fund for 2 years, and quickly discovered all the needless things I was wasting my money on. After the 2 years (and along with a 6% employer match), I was absolutely blown away at how much was in my account. Time is money’s best friend.

  11. Martin
    May 16, 2013 | 12:07 pm

    Barb, these are great tips. However as far as automation I have automated transfer from my checking into my savings account(s) and transfer money before I even touch them. Works well for me.

  12. Barb
    May 16, 2013 | 2:42 pm

    @Blake, These past 2 years have been great for wealth creation. The long term key is to stick with the strategy during the down turns as well. So glad you are moving toward your goals!
    @Martin-So smart. Automation is a great financial wealth building strategy!

  13. Najlepsze Lokaty
    May 20, 2013 | 8:01 am

    Hi. I really like the idea to make saving as a habit. For me it was easier because it is something that I’ve intercepted from my parents. I need to know that if I loose a job or something unexpected happens, I would still be good, thanks to the emergency fund. Therefore I like your second point – make your life fun without the need to spend a lot of money. Geocaching is really fun where I live, especially if you are into urbex thing. Come to Poland and see for yourself ;)

  14. Barb
    May 20, 2013 | 11:56 am

    Hi Najlipsze- I would love to visit Poland one day. I understand it is quite beautiful. And your parents sound quite wise. It helps a lot when our parents teach us good habits.

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