How to Save Money, Because We All Know We Should Be Saving

Saving money can be tough these days! Did you know that the average household saves about -3% a month. Yes, that’s a negative percentage, and that means that not only are people NOT saving, but they are going further into debt! We need to change that. In order to reach your financial dreams (not just retirement, but maybe a family vacation or new car), you need to be saving each month.

If you were to do some Google searches, ask friends or your personal finance counselor, or read articles in a newspaper or magazine frequently, you would realize that it is possible to save on almost anything. That doesn’t mean you have to try to save on everything all at once, but you can get started on a few things and build up.

How to save

So you are wondering how to save money. Where do you start? What are some things you can do. I recommend starting with this article on 101 Ways to Save Money. There are maybe a few things you’ve heard of doing before, but then there are probably a few you hadn’t heard of and could use. This list gives you practical ways to save on things like groceries, online shopping, insurance, Christmas, entertainment, home expenses, and more.

Often saving can be tough because it feels so impossibly far away or just plain impossible. If you are in your 20s or 30s, saving for retirement can seem like something that could be put off for a while. You have plenty of time right? And conversely, if you are in your 50s or 60s, you may feel like saving enough for retirement is impossible so why bother, right? In either case, it is a good idea to set goals to help keep you on track and get you to your dreams. It is a good idea to set goals of about 90 days or 3 months out. So let’s say you want to save up $10,000 in the next 2 years. That is a big number, and you probably can’t get there all at once. So a good way to get there is to set goals. Tell yourself you need to get a savings account and deposit $1,000 in it in the next 3 months as you start to cut spending and find ways to save. Then in 3 months sit down with your goals list and set a new one. Could you save $1,500 in those next 3 months?

As you spend money, keep your goals in mind. It is a lot easier to forgo that venti caramel frappucino if you think of buying it as stealing from your smaller goal. If you think of it as taking $5 from your $10,000 you might not be able to talk yourself out of it. But if you think of it as $5 out of the $333 you are trying to save this month, you will probably feel better about driving on by the coffee shop.

Start Now
Whatever you do, don’t wait to start. Find ways to save on the things you buy and that fit your life. The more you can save now, the better. You will enjoy the benefits of earning interest as well as less stress because you can save over time rather than trying to save more later.

Find more great ways to save money in the iMoneyMinute archive, quick reads that in 1 minute or less give you useful ways to save.

Tags: how to save, save money, saving