If you want to know how to save money and live better, this article will be very helpful. It reveals very powerful tips for anyone who wants to save money and still live better.
Why Save Money and Live Better?
Why not, right? Especially when you can!
To douse or put out a fire you could do several things. You could deprive the fire of oxygen, fuel or you could never start a fire in the first place.
If money burns a hole in your pocket, it’s time to put out the fire.
It’s time to start saving and deprive the fire in your pocket of oxygen, put your money into a savings vehicle to take away the fuel, and never start the fire of burning your savings, to begin with.
Many people today, of whom you may be one, indicate that they do not have any money set aside in the event of an emergency.
If there was a needed major repair in the home, medical emergency, or a major car repair, many individuals readily admit that they would not have the financial resources to meet that crisis.
Additionally, it could be assumed that if there are no savings set aside for an emergency then most likely an individual has not started saving for their retirement.
It is important for an individual’s financial health as well as their physical health that they begin to implement a personal savings plan.
11 Powerful Tips on How to Save Money and Live Better
One of the best ways to help an individual save money is to prepare a budget.
A budget is a financial tool that shows an individual in “black-and-white” what their financial outlook is and where they are at any given moment during the month.
The financial budget is comprised of two sides to the ledger.
The one side of the ledger deals with income and this identifies all of the income coming into the home.
The other side of the ledger deals with all of the expenses that a household incurs and pays.
Examples of some of those expenses could include rent, food, insurance, entertainment needs, utilities, etc.
Both sides of the ledger should be added up. The best-case scenario is to have more income available rather than expenses going out of the household.
This would be known as a surplus and if the two sides equal out that would be known as a balanced budget.
However, a budget just doesn’t get prepared and then put away in a book or a file. A budget is a dynamic tool that should be reviewed on a month-to-month basis.
This is because there may be a decrease in income or an additional expense on the opposite side of the budget sheet.
Therefore, adjustments need to be made accordingly to keep one’s budget balanced.
- Purpose of a Budget
- Best Budget Books, Apps & Organisers
- Budgeting Apps For College Students
- Budgeting for Senior Citizens
2. Get an Accountability Partner
While endeavoring to save a powerful tip is to have an accountability partner.
An accountability partner helps the individual to stay true to their quest to put away some savings and help them to stay on track.
By reporting or talking over a cup of coffee or other time of getting together, the one individual can report to their accountability partner as to their successes or their falling short of particular goals that were in place.
An added benefit to this partnership is the joy of sharing with another individual about expectations, dreams, and things that are happening in each other’s lives.
This certainly adds to the quality of life when an individual has someone that they can confide in and share with.
3. Read Personal Financial Books
An important tip on saving money and helping the individual to live better is to continually educate one’s self.
This can be accomplished by attending seminars, reading books attending classes, etc.
The world is continually changing and can sometimes affect our financials.
For example, if we’re receiving a set amount of interest on our savings account, sometimes a change in interest rates happens which can result in our income from these financial investments increasing or decreasing.
Therefore, it is best to stay current and keep informed as to what is happening so the individual can continue to save money and live a more even keel lifestyle.
Check out the following books that can help:
- Best Warren Buffett Book Recommendations
- Best Books to Read on Making Money
- Best Books to Read on Getting Rich
- Best Books to Read on Flipping Houses
- Best Value Investing Books to Learn From
4. Get Some Competition
It would seem like everyone likes a little competition in their life and this can be used to an individual’s advantage in saving money.
A good-natured competition can be indulged in with a family member or a friend. The goal of the competition is to see who can save the most by a certain period.
If one individual earns more money than another that needs to be taken into consideration and the playing field needs to be leveled.
At the end of a certain time, competition can be declared as over and the winner can be treated to a dinner out or the loser can prepare a meal, or wash the winner’s car.
5. Set up Automatic Savings
A good savings tip is to have a process arranged with one’s financial institution that regularly sends in saving dollars to an investment vehicle.
Many books authored by many successful personal financial investors endorse this process of utilizing this automated or automatic contribution system in regards to adding to one’s savings account.
The power of engaging in this way of savings is that the individual doesn’t need to worry about whether to contribute the money or not. It just automatically happens.
Consequently, this is one less thing to worry about which adds to the betterment of one’s life.
Check out the following for more tips on saving money:
- Best Reasons for Saving Money
- Tips for Saving Money from Wages
- Meaning of 30 Day Rule to Save Money
- Tips for Saving $20,000 in a Year
- Tips for Saving $5000 in 6 Months
6. Earn Additional Money
By paying attention to the income side of the ledger a way that an individual can save money is to increase the earnings side of the ledger.
This doesn’t need to be daily in and out routine in which 40 hours are devoted to earning additional income.
There are several jobs and opportunities in which the individual is their boss and can set their work schedule.
Some of those opportunities include the paying of drivers to deliver food from either the grocery store or restaurant to the customer.
In addition to earning extra cash and keeping one’s schedule, the opportunity to interact with other individuals is a plus as well as in adding to one’s quality of life.
7. Set Goals
As part of living, we need to be challenged.
One way to be challenged with one’s financial situation is to set up some goals.
The challenge lies in that the goals are established and then working towards the achievement of those goals.
This allows the individual to exercise their mind and resources in the attainment of those financial goals that are set up
Having goals in our lives helps us to get up in the morning focus on something to work on or work towards.
8. Pay Raise? Keep It
If the individual is still working or is receiving retirement benefits, they may occasionally realize an increase in money.
When those times happen it is best to think of them as not occurring and try not to remember that your income has been increased by this amount.
Rather, than spending that extra money put that money away as part of one’s savings.
The idea is the individual has been living sufficiently up until this point and so any added amount would simply be gravy or a cherry on top.
9. Defer Spending
Another savings tip is that we all give in at times to spontaneous spending.
Often, our shopping can be compulsive and we will buy something to make us feel good if we’ve had a bad day or how to get our minds off of something else that is going on.
Compulsive buying is a way to make us feel good and is part of self-gratification.
It is important therefore to exercise discipline when these compulsive buying times come along.
Rather than not buying, it is important just to delay the purchase.
This means that after a month has gone by if one still feels the need to make that purchase then by all means go ahead and do so.
10. Get Rid of Credit Card Debt
This tip is simply meant to limit credit card spending and re-establish one’s control over their finances.
So often, when we make a purchase it is so easy just to take out that plastic and think nothing about the transaction that is taking place.
A way that an individual can save money is to limit their use of credit cards and use cash.
Also, as it relates to credit cards it would be in the person’s best interest to reduce the balances that they may carry over from month to month.
This is due to the exorbitant amount of interest that is paid to credit card companies because of the chargeback to us for the use of their money.
To pay down any credit card debt it is best to concentrate on one card at a time.
The individual can either pay off the credit card that has the lowest balance or they can set their attention on paying off the credit card with the highest interest rate.
11. Park Your Car
One other way to save money and live a better lifestyle would be to park your car.
By this, it is meant that one does not utilize their vehicle as much.
To operate a vehicle is becoming more and more expensive to operate. When the individual adds in the maintenance costs, rising gasoline prices, insurance, etc. they are looking at a substantial amount of monthly expenses.
An added benefit that would make one’s life better is to park their car and walk or bicycle. In addition to cutting costs, there would be associated health benefits.
Personal Story of Saving Money and Living Better
In addition to the fire burning a hole in my pocket, my wallet and its contents were aflame because of some poor financial decisions that I had made.
Fortunately, for all of us, we can learn from our mistakes. Our finances can rise from the ashes.
I was able to do this, not overnight and not an easy task, by rethinking my attitude towards money, learning the value of money as it relates to the expenditure of our life energy, and learn from others.
We can learn how to save money and live better. Like the Phoenix, we can rise from the ashes.
How to Save Money and Live Better FAQs
How Can I Save Money on a Low Income Fast?
Answer: It would appear from the question that the issue is not about the expensive side of your budget, but the income side.
Therefore, a quick and easy answer to saving money on a low income fast is to generate additional revenue.
This can be done by utilizing the Internet and searching for jobs that one can do to earn extra cash and can work according to their schedule.
If an individual has talent, skill, and some spare time, extra income can be earned.
Where Should I Start to Put My Savings?
The answer is dependent upon how much money you will be initially set aside for your savings.
The optimum savings vehicle will give you the best interest rate on your savings. Often, this is dependent upon how much one has available to put away in a savings vehicle.
The important thing is that you set aside your money in as high as an interest-bearing account that you can and in an account that will not charge you any fees.
One can access Bankrate.com to see what sort of investment opportunities are available for the amount of money that you’ll be setting aside.
Check out the more articles for more tips on saving money:
- Tips for Saving $10,000 in a Year
- Guide to Saving $3,000 in 3 Months
- Guide to Saving $5,000 in a Year
- Best Money Saving Mobile Apps
- Best Coupon Sites to Save Money
You Can Really Save Money and Have a Better Life
You are not valued by what is reflected in your financial accounts.
However, working on increasing one’s savings account can help to provide more financial security.
This financial security can help to reduce stress. A reduction in stress leads to a healthier lifestyle. A healthier lifestyle can equate to living better.
This is doable.
Many knowledgeable people say that it takes about 30 days to develop a habit. These habits can be classified as good or bad.
Saving money is a good habit.
Therefore, perhaps it would be a good idea to take these 10 tips and begin to implement them over a time frame to create good saving habits.
Not only will there be an increase in savings but the benefits will spill over into an individual’s efforts to live better.