When I first moved into my own apartment, I brought home less than $1,000 a month and paid $600 in rent; the rest went to car insurance, electricity, food, and other necessities. 6 months later my boss promoted me and now I have a better job making almost twice what I did two years ago, and I'm very grateful for all of it. Even though I have more financial freedom now, I want to buy a new new car, so I still utilize most of the tactics I used to save money when I was completely broke. Here are some of my super saving tips to help out my fellow GAGers who may be in a pinch financially, want to save up for a large purchase, or need to dig themselves out of credit card debt:
Income > Spending
Simple financial advise tells you to bring in more money than you spend. There are multiple ways to do this and you can combine many tactics to find something that works for you. If you need to bring in more money, then find a way to aquire that extra income; if you're spending more money than necessary, then figure out where to cut costs in a way that works for you. Financial security comes from living within or below your means
Get a better job
The quickest way to earn more money is to find a new job that pays better, ask for a promotion at work, or start a second or part-time job. I started out at a part-time job and asked for a promotion that gave me full-time hours and a raise, but I also worked hard and learned cross-training skills to earn it. Corporate ended up getting in the way of another promotion I was promised last year, so I finally gave up on that company and went somewhere else. I had several people offer me jobs, but I ended up with one the guy who trained me in my preferred field recommended because it has better hours, pays better, and offers overtime along with being in my preferred field. I worked with several people at previous jobs who worked multiple part-time gigs or one full-time and one part-time to pay bills and have extra money. Find what works best for you. One of my old co-workers told me when I thought about leaving, "Never feel like you can't quit a job"
Budget and track your spending
Budgeting is more difficult than it sounds. You can budget on your own using pencil and paper, use a smartphone app for money management, or ask for help from a budget-conscious friend or relative. My bank has a neat online feature that breaks down my spending for me, so I use it every couple of months to track my spending. Use budgeting as a tool to understand where you money goes and where you have room to cut costs. When I decided to move into my own place, I budgeted everything to understand exactly how much rent I could afford with my spending habits so I didn't end up with a place I couldn't afford. You can budget monthly, weekly, or daily depending on what works for you. I have my bank text me my balance and expenses daily and save all my receipts because I find peace of mind in financial security. Anyway or anytime you do it, keep track of your expenses
Debt, credit cards, and loans
I have no debt, no credit cards, and no loans to pay back because I've never taken any out. My personal recommendation is to avoid debt at all costs and only take out a loan or swipe a card for what you can pay back. If you do have debt, pay off the one with highest interest first, then go for highest balance (if you have a lower interest rate card with such a high balance that overall you spend more on interest with it, pay that one off first). Pay back your student loans last because they don't affect your credit score as much. Pay off auto and home loans and mortgages before credit cards
Cutting costs
Knowing how much you make and where you money goes is the first step. Cutting costs takes more effort and dedication but is the most important part of saving money. Know where to cut costs and where to not spend money in the first place
Necessity vs want
Now that you know your income and budget, you can start eliminating things you don't need. I start this by writing down everything I do need on one side of a piece of paper and everything else on the other side. Anything in the "necessity" section can stay and anything on the "want" side is up on the chopping block. Items such as rent, car insurance, and electricity are necessities, but cable, fancy phones, and video games are wants; some items such as new clothing for work or special events, gym memberships, and food can go on either side depending on your lifestyle. Try cutting out all the little wants or the most costly one first and go from there. Try living with that budget for a month and see how you do
Accept free gifts
Whenever anyone has free food in the break room, I take it because that makes one meal or snack I don't have to pay for. One of my co-workers gave me a free TV with a DVD player her dad was throwing away, so I can watch DVDs even though I don't have cable. I shop at thrift stores and garage sales for clothing, toys, furniture, and exercise equipment. You can save a lot of money by humbly accepting free gifts (make sure you thank the person giving it to you) and shopping at garage sales and thrift stores. You'll also make someone feel good by letting them help you out
Food and eating out
Learn how to cook--seriously you should learn how to feed yourself as an adult and eating out is expensive. I read one study where a couple saved $2,000 in a year by cooking at home 2-3 times a week. Learn a couple of meals online or watch the Food Network or buy a cookbook the old-fashioned way. Cooking is a learnable skill, so you don't have to subsist off McDonald's and Mac 'n Cheese to save money. A box of Spaghetti and a jar of sauce only costs $2 and yeilds 3-5 meals depending on how much you eat. Personally I love my Crockpot because I can get cheap meat, a bag of potatoes, an onion, and eat dinner for two weeks on $10 worth of food ( I have a 6 quart Crockpot)
Saving money on food starts at the grocery store. Plan meals and ingredients before shopping so you can avoid overpaying or buying a bunch of junk food. A good rule of thumb is to not pay more than $3 an item except on necessities such as meat, milk, and bulk items. Buy in bulk if possible. Potatoes, rice, noodles, and bread are cheap items that will fill you up and give you enough calories throughout the day. Carefully plan meals such as burgers, home made pizza, soups, and other dishes that may require many items because you may end up paying more for the entire dish on each item than you can afford. Buy fruits and vegetables that last a while such as tomatoes, apples, oranges, potatoes, onions, and squash. Not eating highly perishable items such as cucumbers, salad, strawberries can be a money dump. Buy store brand items if they taste good and don't waste money on organic items
Hobbies and entertainment
Entertainment costs money and can be extremely expensive. Save money for big expenditures such as concerts and go to lady's free nights on the weekends. Stay home if social drinking causes you to spend half your wallet. Find inexpensive hobbies like reading, drawing, and gardening. The first year I lived in my own place, I played cards games with my neighbors almost every night or stayed in my apartment with the lights off, just dancing to music with my cat; I create art and sewing is my most expensive hobby; Writing is cheap, therapeutic, and creative. If your friends encourage you to spend too much, come up with a cheaper alternative to their plans. Workout at home or catch up on your sleep by napping more
General tips
Pack a lunch for work
Use less electricity
Take shorter or less showers
Use less AC and heat
Avoid stores, malls, and websites you overspend at
Shopping without a cart will make you spend less
Ask yourself how often you'll use something before buying it
Avoid buying items simply because they're on clearance or sale
Drive less and save on gas money
Ask friends and family to help keep you on track
Move back in with your parents if you can't afford your own rent
Feel free to share your own tips for saving money
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