Living in an age of ‘I want it yesterday’, people sometimes think impulsively. Instead of putting a bit of money away for a ‘rainy day’ they make it rain money. I personally think it’s great when someone can afford to live in luxury and keep money circulating in the economy. If you’re someone thats living outside of their means, you might consider living a bit more frugally.
Whatever your financial situation, whether it’s a limited income, student loans, mortgage, big family to take care of, or if you’re just interested in spending your money more constructively, I offer a few solutions that guarantee you’ll end up with more money than if you didn’t use them.
1. Save your change. Let’s say that on average you have 50 cents left in your pocket at the end of the day. If you collect that money, and use the free coin star machines at Commerce banks, you will have saved $182.5 at the end of the year.
2. Pay yourself first. Every time you get a paycheck, put some money away into your interest savings account. Ten percent is the ideal amount of money that you want to save. Make this a habit, and you’ll be surprised at how much extra money you have at the end of the year.
3. Have a monetary goal. What is the reason that you want to save money for? Is it for retirement, an exciting adventure, or a material item that you’re just dieing to have? When you have your goal clearly defined you feel more motivation to achieve it. You’ll feel better saving money for the big pay out instead of blowing it away on instant gratification.
4. Change that habit. The daily latte ($4), the pack of gum ($0.75), the super-size meal ($0.60), the late night drive-through ($7.50) – you get the point. That alone will cost you nearly $4444 a year. Think you can live without it?
5. Bring your lunch. Whether you have to cook ahead for the week, or make time in the evening to just cook a day ahead, bringing your own lunch is cheaper and healthier. You know you use fresh ingredients, pay super market prices, and avoid traveling to get lunch. Save $3-5 a day for lunch and that’s $1460 a year on average.
6. Shop smart. Ebay, buy.com, bens bargains, and an array of other frugal shopping sites give you the ability to find great deals. Save hundreds of dollars by shopping around and never pay retail.
7. Make more money. If you’re already making money, you can increase your efforts by 10% in order to make more money. If you’re working with clients, you can fire your worst ones, and hire clients that mirror your best ones. Just remember, it’s not about putting in more time, or more effort, it’s about smart effort.
8. Get the last model. Some people live impulsively and must have the latest everything. From cell phones to cars, if they’re not in the newest model they aren’t satisfied. Take advantage of the fact that items depreciate in value very quickly and buy some things used. You get something functional for a fraction of the price.