What are the smart ways to save money?

Question

mamasan · Accepted Answer

I used to make a budget, such as:

1. Add up all your monthly expenses, such as rent/mortgage, car payment, insurance, electricity, cable bills, cell phone bill, etc. These are fixed costs so you should know within a pretty close range what these will be. Let's say this number is $2,000.

2. Estimate your monthly expenses for necessities like gas, groceries, etc. Let's estimate this at $500.

3. Now estimate monthly expenses for your normal lifestyle, things like eating out, going to the movies, that fancy coffee, etc. Let's estimate this at $300.

Add up all of the things above ($2,800). Now look at your take-home pay. Let's say you bring home $3,500 per month. Based on these numbers, you have an extra $700 left over each month. When I used this method, I'd always give myself a little bit extra spending money, so in this case, I'd probably make myself save $500 out of the $700 extra. Giving yourself a little leeway makes you more likely to stick to your budget and saving goals. If you keep yourself on too tight of a leash, you'll be tempted to splurge. It's like going on a diet. If you don't let yourself eat anything you enjoy, you won't make it very long. But if you let yourself indulge within reason, it's a lot easier to stick to it long-term. And if you stick to the $500 per month, you'll have saved $6,000 in a year.

Anonymous · Accepted Answer

1. Take a look at your bank account. Most banks will break down your spending into categories for you. See what you are spending the most on or wasting money on and see if you can bring it down next month or cut it out.
2. Instead of 5 streaming subscriptions a month, keep only the one you watch the most.
3. Set up your bank account to automatically deposit a set amount into a separate savings account which you do not touch unless there are emergencies or for use on things you are actually saving for.
4. If you're dating, go on your cities website and find out free creative things you can do for fun in your city, so you aren't spending anything or a ton in that department.
5. Cook for yourself.
6. Practice actively turning off lights when not in use, turning up the a/c if you have one when you leave the house, turning off the faucets while you brush your teeth, taking shorter showers, unplugging appliances when not in use.
7. Use cash instead of credit to limit your spending in stores. This will help you set a limit.

Friendlybro79 · Accepted Answer

Set 15-20% of your pay to automatically be put into a 401k if your job offers it from as young as possible to get used to it being out of your paycheck and allowing compound interest to do its job. Time+ compound interest go hand in hand. Don't touch this money until you retire or unless it's for a medical emergency.

The second part is don't make excuses that you can't do it or don't make enough. Guess who will always be in that position when they're approaching retirement age? The people that convince themselves they can't do it.

A friend of mine has under 50k in his 401k same age as me. He refused to listen to me so 20 years of reminding him to do more each year and 20 years of him ignoring me has left me at over 20 times what he has. I'm not smarter. I just didn't make excuses as a young person and sacrificed each year so I could be self sufficient in retirement. At the pace I'm going, even with how the market is now, I'll most likely be wealthier retired than now. I still get by today, but my biggest fear was never being able to retire and not being able to take care of myself financially.

I'm scared for a lot of people because they do not do nearly enough saved.

If you don't have access to 401k then max out Roth IRA every year. Go to any trusted financial institution to set one up. Do all this yesterday.

HiveBee · Accepted Answer

If you're saving at all it is a good thing. What matters is that you have the will power to save in the first place!

I suppose I would suggest you go onto YouTube and search for finance 101 classes from different universities. Stanford. Harvard. Who knows. There's plenty of real classes you can watch for free.

How you should save will ALWAYS be unique to your own specific life circumstances. People want a cookie cutter saving strategy but if you really want to be smart about it you have to engage your brain do some work figure it out and all that.

Or I suppose you could hire an expert to help you.

jennifer_bloom · Answer

1 - Only buy from a restaurant when they offer discounts.

2 - Buy in bulk for items you need such as overloading on oatmeal or canned fish.

3 - Eating oatmeal and rice which is cheap.

4 - Using black vinegar and soy sauce to flavour noodles when you want to save money.

5 - Plant your own apple tree. You could sell them later.

6 - Eat chia seeds soaked in water over night when you do not have money for fish and need omega 3.

7 - Eat dried apricots for vitamin A. Just 4 dried apricots is 100% of your vitamin A for the day.

8 - Buy raisins for heart health. It's cheaper than grapes.

Kori1236 · Answer

1. Hold onto something and decide if you absolutely needed. Most of the time it’s a want not a need.
2. Spend more on groceries and actually meal prep for the week. It saves money on eating out.
3. Make a budget for your monthly expenses and then do the math on your job and if you meet those expenses.
4. If you don’t make enough to cover your monthly expenses get a side hustle. I have two.
5. If you do meet your monthly budget and still have money to spare put $50 away each pay, some money stashed away is better than none.

An extra thing I do mostly because I have a small wallet with minimal space for coins is I have a piggy bank. So for me once my expenses and bills are paid I’m left with about $300 left over, I have one side hustle that pays $400 a month in direct deposits and another that pays roughly $200 a month. So that gives me $900 extra. I’ll put $500 into a savings account and have $400 to do with what I please.

HighValue · Answer

Stop spending it. :P

Budget for all of your expenses each month to figure out how much discretionary spending money you have left each month. Save half of that and spend the other half on whatever you want. You also need an end goal in mind such as saving up a specific amount for something you want. Or you could try to save up what I call an "emergency fund." That means to save up enough to pay all of your expenses for 6 months, or at least enough for mortgage/rent, utilities, and food for a year if possible.

JustinTheGreat · Answer

-I always put 20% of my check (well now I’m a server so 20% of the tips I make) straight into my savings.

-I save change in a jar, which adds up pretty quickly.

-Since I make tips, I keep all 1’s and 5’s in my wallet and deposit the rest into my account. My cash is my main spending money. So I don’t touch my card as often.

-When people send me money on apps like cashapp, venmo, PayPal, etc. i never transfer the money into my account. I let money build up there and forget about it.

DeeDeeDeVour · Answer

1. When you see something you like or something interesting, ask yourself if it's necessary.

The likely truth is that you don't.

So walk away.

2. Also, if you can walk instead of driving your vehicle or riding where you pay, just walk and get fit while doing so.

3. Additionally, substitute beverages with sugar by having water instead. Again, your money and your health both get saved.

Guy13 · Answer

Besides all the obvious pay off credit and stop spending...

Immediately adopt the 80/20 rule which mandates 20% of check goes to savings

80/20 applies to Expensees to? The patterned expense must be cut in halffrom starbucks to groceries to bars to restaurants etc

Packing lunches, Cook your meals.

second jobor part-time job into debt or savings

Operate on cash alone. Still the most effective way to reduce expense

melanieeeB · Answer

You choose a certain amount that you wanna save monthly (mostly people say it should be between 10-30% depends on your income and spending) and immediately when you get your paycheck, you put that amount away on another account and never touch it, until it's really necessary...
Also know for what you're paying and giving out money all the time, get rid off unnecessary spendings and don't give out money you don't have

genericname85 · Answer

there's no smart way to "have" money unless you need it for your regular daily spendings. money that is just in your possession is losing value because of inflation, especially right now where corona and the ukraine war are causing a global depression with the craziest inflation in decades. so "having" money means losing money. you either spend it or you invest it. either way, not actively "having" your money is the smarter way. i mean look at elon musk he has a ginormous net worth. but he barely has any money. he just has money to pay the rent and stuff. the rest of his money is always invested to multiply.

exitseven · Answer

Stop buying things you don't need, bring your lunch to work, buy in bulk, turn off lights and TV if you are not in the room. Review your monthly subscriptions and cancel the ones that you don't use, Have a savings account and put money in there first.

TroyDT · Answer

1. Never buy a new car.
2. Avoid carrying credit balances over.
3. Buy new old stock smart phones rather than the latest model.
4. Get rid of subscription streaming services that you rarely watch.
5. Comparison shop your cell services. Lots of people are waaaayyyyy overpaying.

But do not stop at saving. Now invest those savings into something that creates passive income for you.

misfittoy · Answer

not to eat out, cook at home, save on gas by doing all your trips at one time if possible

ohsheeT · Answer

I don't know about anybody else but for me I have direct deposit my paycheck goes in to my bank I do side jobs so that's my spending money and my bill money I also collect coins because one penny can make you lots of money if you know what you're looking for so I have hundreds and hundreds of dollars in change I save all my change I just need to find some time to go through it all

mobiusforniner · Answer

Dont buy shit until you have the cash.

Some people laugh at me for driving a 32 year old beeter as my daily driver. Same computer for 12 years. Only upgraded to smart phone 2 years ago.

But i have a house, a private plane, and a grand piano

Pinay_ako · Answer

Take half of your pay check and put it directly into savings. No ifs, no buts. Live within your means!

lightbulb27 · Answer

get your check, take some $ or % out... put in safe place, invest it so get confident return with low risk of principle loss. Then spend what you have to.

Pot8o · Answer

List your expenses from least to most important and then start cutting from the top of the list.

maximumpower · Answer

Not in order:
1) Do NOT live beyond your means
2) Pay yourself first (put money in savings as a priority)
3) Make a budget and stick to it
4) Don't borrow unless you absolutely must (education is rare exception)
5) Get a GOOD education/certification in skills that are worthwhile (clue: the most difficult ones pay the best).
6) WORK
7) Get a Dave Ramsey book and read it

Mitt15 · Answer

Select the percentage of amount you want to save from your salary , and start SIP of the same amount , it will automatically get saved and invested for a particular time horizon.

It's the best way to multiply your money.

bean2k21 · Answer

-Invest other people's money -Make sure your housekeeper and babysitter is on birth control

RangerBlue22 · Answer

Voting Republican might not be a bad way to save money right now considering how the Biden administration drove the inflation rate astronomically through the roof.

sheikalana · Answer

Open a savings account. Establish a certain amount of money that you want to put aside every month. When you receive you salary immediately transfer that amount of money to your savings account.

EaterPeter · Answer

Most ways are smart. Start early and save as much as possible. Make zero dollar budget every month. Pay yourself first. Look for 7 baby steps by Dave Ramsey.

coachTanthony · Answer

Make your own coffee and do a lot of food prep for the week. This will save you tons right there.

Sour-rose · Answer

-make a goal with it -have it as a rainy day savings -put away a little by little

Anonymous · Answer

DON'T ask poor people how to save money or anything with money. Go talk to someone who really knows money. Someone who has Beene educated in the understanding of money. This is your life, stop fucking around asking average people.

Agape93 · Answer

If you don't need it, don't buy it.  Buy generic items.  Buy in bulk.

Massageman · Answer

Do an on-line search for "smart ways to save money". You will see more hints than you will have time to read!!!

es20490446e · Answer

- For each amount you earn, always save a percentage. - Use your savings for investments.

Anonymous · Answer

It's not about saving more, it's about making more.

If you really have to ask, the answer is not spending money.

I mean like Why pay thousands for a surgery when you can just have your organ give up for free?

scooogy · Answer

There are people who got brainwashed enough to believe they ought to go shopping for the latest fashion or invite others to restaurants or go for "cheap" holidays. Just don't.

OddBeMe · Answer

Like exercise. Routine. Automatic bank withdraw. Savings accounts are usually free. You could also open a Vanguard or Robinhood account for free and invest in Blackrock etfs or likewise.

CasuallySamsonite · Answer

Go to sleep for dinner. Much cheaper, less dishes too. /s

roy_ricky09 · Answer

Simple rule... No matter what save 10% of your earnings every month without fail. No matter what happens

Madwind · Answer

For now, I'm just dealing with changing my habits. When I achieve this, I will have risen one level.

Saarr · Answer

Don't go grocery shopping while hungry🙃

Anonymous · Answer

Make sure 10% of every paycheck goes to savings, and don't touch it.

Aiko_E_Lara · Answer

Only by things that are necessary and can help you work faster and harder. In other words, only use money to invest.

Hispanic-Cool-Guy · Answer

Don't buy stupid ish especially when you know you aren't going to be using it not even 50% of the time will greatly help.

Anonymous · Answer

find a cheap hobby that doesn't revolve around socialising...

EllaNella · Answer

try to avoid eating out/ordering food

Anonymous · Answer

you're asking the wrong question. the correct question should be what are smart ways to let my money make money for me

jimmy2 · Answer

Well with what I heard about the Great Geration it's time to dig up the yard

KostasKouvalis · Answer

Use other people's money

PetiteBabe64 · Answer

Impulse control over Impulsivity.

dustybiker · Answer

Mind over matter.

AviatorTom · Answer

Simple rule to save... SPEND LESS

MementoMori_ · Answer

Don't spend it.

jshm2 · Answer

Not spending it in a cavalier way

Fireguy17 · Answer

spend a third, save a third, invest third.

cth96190 · Answer

Good quality real estate, gold and silver.

Dreamclouds · Answer

Don't just make more!

rabbitzzz · Answer

In gold.

Dinosaursandanime65 · Answer

Save money

Joker_ · Answer

learn to cook

What are the smart ways to save money?

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