I hear it all the time, so many clients want to build their wealth and get rich, but they don’t know how. It’s not that they aren’t making good money, it’s that they aren’t making good financial decisions.
The big secret to saving money fast is your behaviour. It’s all in how you manage your money. You could be making 6-figure or multiple 6-figure incomes, but if you are not managing your money well, you will have nothing to show for it.
How to save money fast:
1. Create a budget
The best way to save money fast is to know how much money you are bringing in each month and ensuring that you are not spending more money than you make. This is your top tip for saving money fast. When you live within your means you are avoiding debt.
2. Pay off debt
If you are carrying debt you need to pay that off with the money you are saving. It costs a lot of money to carry debt, especially if you are using payday loans (which are the worst) and using credit card debt. Credit cards charge interest anywhere from 20% to 40% and can quickly add up in interest expense. Learn how to create a debt repayment plan.
3. Build an emergency fund
Having enough money saved to be able to use it in an emergency is not only smart, but it can be a real stress reliever. Knowing that you are not living paycheck to paycheck and that if something unexpected happens that you have money saved and can cover that expense can be really freeing. Save money for that emergency fund.
4. Protect your biggest money-making asset
You are your biggest money-making asset, so you need to ensure that if something happened to you and you were unable to work that you would still have money coming in to cover your expenses. This is often overlooked and people cut insurance expenses in an effort to save money, but you absolutely need the insurance. You need to protect your income from life’s misfortunes because anything can happen.
5. Passive income
The quickest way to riches is to create a stream of passive income with the money that you are saving. Investing your saved money into a passive income instrument is one of the best ways to save even more money.
6. Save on groceries
This is the biggest household expense that has a lot of potential for saving money. Planning meals and buying only what you need will reduce your grocery bill significantly and you will be saving money. Planning your meals around less expensive meal options will save you even more money.
7. Save on utilities
Yes, you can save a lot of money by saving on energy costs. Turn the lights off when you are not in the room, keep the thermostat a few degrees cooler in the winter and if you have air conditioning in the summer then keep the thermostat a few degrees higher. Every effort you make to save on your utility bill will add up in the long run.
8. Saving money on gas
Stop the frequent and unnecessary trips to the grocery store. When you plan your outings this reduces the number of times you will need to go out driving. Walk or ride your bicycle when you can. Don’t leave your car running for a long length of time when it’s not needed. There are many ways to save money on fuel consumption when you drive carefully and don’t speed and keep regular maintenance on your car.
9. Practice mindful spending
Mindful spending means that you are buying only what you truly would use. It makes no sense to have a closet full of shoes if you are only wearing a few pairs, or buying a bunch of handbags when you don’t use them. It’s ok to treat yourself occasionally but when you are spending money for no reason that leaves a huge opportunity for saving money.
10. Control your emotions
If you are an emotional spender, which many people are, tapping into why you turn to spend money to make you feel better about yourself is an opportunity for saving money and a lot of it. Rather than avoiding your emotions by spending money in hopes that it will make you feel better, you can take a walk, go work out, or find another hobby to lift your spirits.
11. Buy used cars
Rather than buying a shiny new car straight from the car lot and have it lose a chunk of value as soon as you drive it off the lot, buy a used car that is a year or two old. This way you still have the feeling of a new car but you are saving thousands of dollars in depreciation costs. Buying used cars is an excellent way to save money.
12. Save money for a house
Depending on where you live homeownership can be better than renting. Saving money for a house can be a good idea as rather than paying rent you can put your mortgage payments into owning your home. If you live in an expensive city where renting is more economical, you could also consider moving somewhere more economical in an effort to save money.
13. How to save money with kids
Saving money when you have kids can be challenging but it is definitely possible. You can buy clothes at thrift shops, trade babysitting duties with friends to save money on child care, and look for free activities for the kids to do on the weekends. Community parks and recreation centres have plenty of opportunities for kids at a fraction of the cost. Saving money sometimes requires creativity.
14. Price compare
Comparison shopping is an excellent way to save money. You can comparison shop on anything from groceries to insurance plans, cell phone plans, to home repairs. Always try to get the best price for anything you are spending your money on.
15. Create a savings plan
When you make it conscious plan to save money and you create savings goals that make you accountable for saving money. You can commit to saving a part of your paycheck and automatically deposit that portion in a savings account. When you commit to saving money your savings will grow exponentially, as long as you don’t spend it.
16. Find ways to stay motivated
One of the hardest things about changing your money habits is finding ways to stay motivated. Try different ways to keep you motivated while saving money. Quotes can be very inspirational and keep you motivated, or you could look at creating games at achieving savings goals. When you make a game of it and involve others to play along with you saving money can be more fun.
17. Follow money experts
Social media is a great way to stay informed and inspired. When you follow money experts and their messages come through on your feed then you are constantly reminded of the importance of saving money and are more likely to reach your savings goals. Turn saving money into a lifestyle and read about money every day.
18. Stay informed
When you stay informed about ways money will affect your life like the rate of inflation and food prices increasing it will help you stay on track for saving money. When you are up to date and aware of what is happening in the markets and the overall economy it will help you make smarter and more informed money decisions.
19. Follow interest rates
Try to stay away from debt as much as possible, but if you do borrow, borrow money responsibly. That means try to get the lowest rate possible. Low-interest rates will help you save money, especially if you are looking at mortgage rates. Shop around for the best rate before you commit to a loan or mortgage.
20. Learn about investing
The more you know about investing your money the more money you will save. When using financial advisors to take care of your money for you the cost is very pricey. When you are able to manage the basic portfolio on your own then you are able to save money in administration fees and commission fees. Be mindful of where you are investing your money and stay away from expensive mutual funds.
21. Knowledge is power
Knowing where your money is going allows better opportunities to save money. When educated on the ways you can save money and how comparison shopping will help you save, you will be putting yourself at an advantage over others. There are tons of opportunities for saving money, and more saving money opportunities are off this list. Be in control of your spending and your saving opportunities will be endless.
22. Pay cash
It’s harder for people to part with cash than it is to pay with plastic. Paying with cash creates a pain point for people as you physically feel yourself parting with your hard-earned money. When paying with plastic people tend to spend more because you can detach yourself from parting with cash. When paying with cash you are physically handing over your money. It’s psychological. You save money by paying with cash because psychologically you won’t be spending so much.
23. Pay off your mortgage
Don’t carry your mortgage for life. It’s beneficial and you save a lot of money when you pay off your mortgage earlier rather than later. Your mortgage is the biggest debt you will likely carry so ensuring you pay that mortgage off you will be saving money on interest expenses. Even adding a bit of money to the mortgage each pay will reduce your mortgage over time.
24. DIY repairs
Before hiring someone to repair something for you, try doing it yourself. You can find do-it-yourself repair advice on YouTube and it will save you so much money if you try to repair it yourself.
25. Repair before replace
All too often when something is broken we just replace it. Not only is that bad for the environment, but it’s also bad for your pocketbook. Try getting the item repaired rather than replacing it too quickly. This is an excellent way to save money.
The bottom line is there are many ways that you can save money. Saving money can be challenging, fun and rewarding. Knowing how to save money fast is key but knowing what to do with the money that you saved is even more important.
Managing cash and investments needs to be top of mind to build your wealth. You need to know how to manage your personal net worth and watch it grow.
Want to know how to create a well-rounded personal financial plan? Sign up for The Personal Finance Money Method course to get clear direction on creating your personal financial plan.
