What is the Quickest Way to Save Money?
This post is about what is the quickest way to save money.
I will give you some simple yet highly effective tips to help you save more money quickly, even if you are on a low income!
Whether we are in a boom economy or a recession, there is one thing you need to always be on top of, and that is your finances.
By not managing your money properly you will experience the following:
- More stress
- More anxiety
- More arguments
- More negativity
- More uncertainty
- More problems
Did you know the average person around the world has only $500 in their bank accounts?
This comes from the current culture of “living for today!”
I am not telling you to become a scrooge, but I am advising you that living for today in regards of your finances is not wise.
Sure, you can blow a bit of money on a nice vacation, a nice car, or a fancy watch.
But if you are doing so when you already are in debt, or you have nothing in the bank is a foolish mentality.
I get it, you want the fancier things in life.
We all do!
But if you just be a little more patient, and realize that you most likely cannot afford to live like Dan Bilzerian or Kim Kardashian then maybe you might take a rain check on that Porsche you want so badly.
Saving money is simple, once you understand exactly what you are working with.
I was terrible with my money in the past!
I did not know what I was earning, what I had saved, it was an embarrassment.
It was only when things started taking a turn for the worse however that I realized that I needed to get on top of my finances and saving money.
I was also a gambling addict for many years too.
I lost tonnes of money on stupid bets, and at the casino.
Yet I managed to curb my addiction, and STILL managed to save and manage my money much better than the average person – so if I can do it, so can you!
I love gaming, so I see money as a game.
Once you know how to play the game, it will all get a lot easier.
Here are the 8 quickest ways to save money, even if you are on a low income.
#1 – Start Managing Your Money Properly
It is time to get a pen and paper out, or your laptop/tablet and start doing some much-needed math.
What you want to do is begin managing your money properly.
What I mean by this is you always need to know what is coming in and going out of all your bank accounts.
Do the following:
- Sign up to mobile/internet banking (if you do not have it already)
- Write down all expenses one by one
- Write down all income one by one
- Total up the balance
Yes, I know this may be difficult especially if you are on a low income.
But low income is better than NO income!
So, start totalling everything up and completely stay on top of your transactions.
Chances are in your bank accounts there are charges and subscriptions you had completely forgotten about.
By managing your money better initially you will know exactly what you can spend and what you can’t.
This is your first huge step on saving money.
Make sure you do this at least once a week and look at every transaction, charge, or bill going out.
Be honest with yourself, do not try and change or lie.
Your bank balance does not lie my friend.
And if you are spending too much, or you are ashamed by what you see, that is normal and fine.
You need to understand that you have been managing your money extremely poorly up to this point.
So total up what you are spending and ask yourself a question:
Do I really need this expense?
If you are spending money for a gym you do not go to = cancel it.
If you are spending money on a streaming service, you do not use = cancel it.
Go through every tiny detail on your accounts, and make sure you stay on top of this and consistently.
By having online banking, you will most likely have real time access to your accounts to see what you have at your disposal there and then.
However do not get any bright ideas and think you are going to blow that money, we are saving here, not living for today!
#2 – Walk or Cycle More!
My main office is a 20-minute drive away from my home.
However, parking there is a nightmare!
There are no spaces hardly, and sometimes I used to pay for parking!
Then I began walking and in really good weather I would cycle.
The amount of money I would save by not using up petrol was enormous!
That is why you should investigate walking more, or if you are confident enough cycle!
You will save so much money on travel, which for most is some of people’s highest monthly expenditures.
So, strap on your trainers, or saddle up on your bikes to wherever you need to travel to.
Not only is this good for your bank balance, but also terrific for your overall health too!
#3 – Negotiate Your Bills Down
There is a large possibility you are paying too much for certain bills.
But because maybe you never took managing your money as seriously before, it perhaps has slipped your mind.
So make sure to investigate your utility, Wi-Fi and other bills and get on the phone to them ASAP!
These companies can be quite cheeky when it comes to their customers and they will charge you whatever they can without you even realizing it!
So, once you have called them tell them you are unhappy with the price and start negotiating.
Remember you are the customer; they do not want to lose your business!
Only last month did I renew my home insurance, and I still managed to get an amazing 25% by threatening to leave them!
And if they do not play ball, shop around.
There are PLENTY of competitors who are happy to take you on as a customer.
This is also a good opportunity to ask trusted friends and family members for any recommendations.
I remember discovering I was paying twice the amount on an energy bill that my uncle was paying, and his house is twice as big as mine!
So, shop around, write down as many quotes as you can.
And even when you agree on a quote, STILL negotiate, because most of these companies always have room to bargain, even when they stress “it’s the best we can do!”
You will be amazed by how much money you will potentially save by negotiating your bills!
#4 – Eat Out Less
Dave Ramsay one of the world’s leading money management experts always stresses when people are in debt to eat out less.
That is because it is an unnecessary expense.
If you are going out to restaurants a little too frequently, you need to cut back.
If the average meal is $40 per head, and you eat out twice a week every week that is $4160 a year!
Think what you can do with that money.
I have saved a tonne of money learning to cook, and find it way more rewarding and satisfying.
I would also like to stress that you need to cut back on the premium coffees aka the Starbucks lattes etc.
Those coffees are ridiculously expensive, but addictive.
I was spending a fortune drinking those coffees every day on my way to work, and ever since I stopped, I was amazed at how much money I saved.
I am NOT suggesting to never have a coffee or eat out.
But if you want to save money quickly, I suggest curbing them down to treats every so often, so you can get on top of your finances.
#5 – Sell Your Junk
Want to make money fast?
Look around your house, your attic, your garage, and you will see money everywhere.
Yes, all your old junk and toys etc has value in it.
So why are you just letting it sit there and gather dust?
There is a great saying:
“One man’s trash is another man’s treasure.”
What is junk to you, may be valuable to somebody else!
That is why you need to start flipping this stuff on eBay!
I cleared out an old cupboard full of DVDs, toys, and other junk I never used and got an amazing $500 for it all!
When I say this stuff was junk, I mean it was literally junk!
But I ended up being $500 better off then I was with it sitting in a cupboard literally doing nothing.
So start flipping today!
Do your research to see if it is already selling on the web so you put an accurate price, and start making money to put straight into you savings account.
#6 – Cut Out Unnecessary Expenses
We need to talk about your unnecessary expenses.
Chances are you are wasting a lot of money on something you do not need.
Here are some examples of unnecessary expenses:
- Unneeded insurance
- Online Subscriptions
- Pricey gym memberships
- Costly gifts
- Cigarettes and e-cigarettes
- Social Drinking
- Takeout and delivery meals
The amount of money you will save just cutting 50% of these expenses will and I am not exaggerating here = BLOW YOUR MIND!
You will start reviewing everything, and seeing whether or not you need to go out for that expensive shopping trip, or pay for a gym you don’t go to when you can workout for free at home or in the park.
So be realistic, be mature and understand that theoretically you do not need any of these things, but instead that you NEED to save money asap!
#7 – Start a Side Hustle
This tip is especially for those who have a low income.
Wouldn’t it help your money problems if you started earning more money on the side from your job or business?
Of course, it will!
Here are some great side hustle ideas:
- Sell items on eBay or Craigslist.
- Renting Out Your Car
- Wash Cars
- Window Cleaning
- Delivery Service
- Bar Service
- Walk Dogs
All these are just the tip of the iceberg, you can do so many fantastic side hustles to earn an extra buck that will go straight into your savings!
#8 – The 90 Day Rule
When I was finally getting on top of my finances my father gave me an excellent rule to follow to save more money:
“Save 90 days’ worth of expenses, and never touch it unless in an emergency, have it always there in your account.”
When my father meant expenses, he meant essential expenses:
- Utility Bills
So, let’s assume you have $2000 total monthly expenses, to follow the 90-day rule you would need $6000 saved.
Some people always preach to have a years’ worth of expenses, but personally I prefer to do the 90-day rule as it suits my life better.
Start saving and once you have 90 days’ worth of expenses then and only then can you be a tiny bit more carefree with your money.
This is because you will be a little more relaxed because you have managed to accumulate the necessary amount of expenses for those inevitable rainy days ahead.
And do not use this money for anything else, do not touch it, and if you want to keep adding to it.