There are a lot of reasons to live frugally.
Maybe you’re trying to pay off debt faster, perhaps you want to build a $1,000 emergency fund quickly, or maybe you just enjoy penny-pinching.
Whatever your reason may be, I guarantee these money saving tips will help you live frugal to the fullest.
Before we get started though, I want to say one more thing:
If you’re trying to save every nickel and dime because you think that’s the way to get rich – I’m sorry but it’s not. No matter how much you save, saving money alone will not make you rich.
That may be a hard truth to swallow but once you realize that you’ll be a lot better off. The key to getting rich is to have a balance of saving and making money.
Ok, time to get started with the money saving tips.
1. Build an Emergency Fund
You’ve definitely heard of these before. An emergency fund is a sum of money that’s saved strictly for emergencies. That means you have to save some money first to build your emergency fund. Lucky for you this post is full of money saving tips.
Once you have your emergency fund, it’s going to do exactly what it’s meant to do: save you money when emergencies happen.
Since you’ll already have enough cash saved to deal with most emergencies, you won’t have to go into debt (and pay interest) to deal with them.
2. Start a Budget
Starting a budget and sticking to it is key to financial success. It’s also one of the personal finance basics.
If you want to save more money you’re going to need to at least have an idea of where your money is going each month and how much you’re making each month. You don’t need to become a budget fanatic, but at least set up a basic budget.
3. Make Financial Goals
Goals, in general, are great to have – they give you something to work towards and they’re motivating.
When you’re coming up with financial goals, follow these key points:
- Be specific – Instead of saying you want to save money, come up with an exact amount you want to save, like $1,000.
- Think short & long term – You want short-term goals to keep you motivated and long-term goals so you know where you’re headed. Your short-term goals should be small wins that get you closer to accomplishing your long-term goals.
- Review and update – Every month you should be looking at your goals, measuring your progress and coming up with new goals.
4. Start Earning Cash Back
This is probably the easiest way to save money, and if you’re not using at least one cash back app or website you’re losing money you could have kept. Even if you barely shop, it’s still worth it to take advantage.