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Practical Tips for Saving Big So You can Afford the Life You Really Want!
Saving money can often feel like a daunting task, especially when you are dreaming of big things like traveling the world and being financially free! One of my greatest skills is stretching a dollar and because of that, we've been able to pay off our home mortgage, send three kids out of state to college with no student loans, and have lived a Nordstrom life on a garage sale budget! I can't even say a Walmart budget because sometimes even that is more than I want to spend! I'm putting together a few practical strategies so that you can save more every day and make the dreams that you have a reality. Here are some actionable tips to help you save money without feeling deprived.
Practical Tips for Saving Big So You can Afford the Life You Really Want!
1. Know Where Your Money Goes
This is where most people will tell you to create a budget, but friends, if you don't know where your money is going in the first place, it's going to be hard for you to come up with any realistic budget that you can work with.
You can't cut back on spending if you don't know what you are spending in the first place, so I suggest taking a full 30 days, creating a spreadsheet or finding tracking software {we've used Quicken for 26+ years} and saving every single receipt and entering every bill you receive so that you can see where your money is going.
If this feels overwhelming, just taking your credit card bill and making a list of where you are frequently spending money {dining out {include those coffee runs!}, grocery store, retail shopping, etc...}. Add up each of those items and it might be eye opening to see how much you spend on each of those categories in total.
2. Create a Budget
After you know where all of your money is going, now you can start to look at where you can cut back. A budget is the foundation of any savings plan.
If you want to find which budget system is right for you, check out this post.
How to Create a Budget
Track Your Spending: For one month, write down everything you spend money on. This will give you a clear picture of your spending habits.
Categorize Expenses: Divide your expenses into categories such as housing, groceries, entertainment, and transportation.
Set Limits: Based on your income and financial goals, set spending limits for each category.
Adjust as Needed: Review your budget regularly and make adjustments as your financial situation changes.
After a lot of years of being pretty darn frugal, I do have a confession to make. We live a debt free life without a budget. You can read more about it here.
3. Automate Your Savings
Automating your savings can help you save consistently without having to think about it. It also reduces the temptation to spend the money you should be saving.
Set up direct deposit and make sure you are taking advantage of retirement savings plans through your employer.
4. Cut Unnecessary Expenses
Identify and Eliminate Non-Essentials
Take a close look at your expenses and identify any non-essential spending. Cutting these out can free up a significant amount of money for your savings.
I'm not telling you to cut out all the joy in your life. Just examine your expenses and you'll likely find an area or two that you could cut back on.
Common Areas to Cut
Subscriptions: Cancel any subscriptions or memberships you don't use regularlyDining Out: Reduce the number of times you eat out each money and cook at home insteadBring Your Lunch to Work: Those daily lunches out add up! Bring a sack lunch from home. It's not only healthier for you, it's also going to save you a TON of money.Impulse Purchases: Make a shopping list and stick to it!
5. Use Coupons and Shop Sales
I will confess that I clip fewer coupons now than I used to, but downloading grocery store apps and shopping those loss leader sales, is a great way to save money. If you're shopping online, doing a quick search for any discount codes will also save you more money!
Keep an eye out for those instant gratification purchases. It's easy to click buy it now on Amazon or while out shopping, but if you don't see it on sale now, it likely will be. Pump the brakes and you'll likely be rewarded with a sale if you take a step back and wait before you buy.
6. Buy Generic Brands
Generic brands are often the same item as brand name items, but at a lower price. You'll find the same quality as name brands and it can end up creating substantial savings over time.
Most stores offer a money back guarantee if you don't like the item, so if you try it and don't like it, take it back and get your money back.
7. Shop Secondhand
Not only is it good for the environment, but shopping at thrift stores, consignment shops, and online marketplaces like eBay and Facebook Marketplace can help you find great deals on clothes, furniture, and other items.
I have found through the years that I can typically buy much nicer brands and quality items at a fraction of the price when buying used, than I could if I were trying to stretch my dollar at a "regular" store.
Bonus, most of the items I buy secondhand can be used and resold and I usually make all {if not more!} of my money back when I resell.
8. Plan Your Meals
Behind your housing expenses, your food expenses are probably the next highest on your list. You and your family have to eat, you can't control that, but you can work to reduce your cost on the money you spend on food.
I hear people all the time complain about the cost of groceries. I get it. I've seen them increase myself. But I do my best to grab the reigns and control my spending where I can, including on food purchases.
Meal planning can help you save money by reducing food waste and cuts down on impulse spending at the grocery store.
How to Meal PlanPlan Weekly: Plan your meals for the week and make a shopping list of the ingredients you need.Use What You Have: Take inventory of the items you already have in your pantry or refrigerator and plan meals around that.Batch Cooking: Cook large batches of meals and freeze or plan to eat the leftovers later.
9. DIY When Possible
Doing things yourself, such as home repairs, car maintenance, and personal care services, can save you a lot of money!
There are likely a lot of things that you can do yourself to save money, and some things you can easily learn to do {thank you YouTube!} with the help of a guide. The library is often a great resource for help with DIY too.
When you think of DIY don't just think about installing a ceiling fan, think of things like doing your own mani/pedi as a way of saving money too. Any service you pay for, evaluate if it's something you could be doing instead.
10. Take Advantage of Free Activities
There are a lot of things you can do that don't cost any money!
Ideas for Free ActivitiesOutdoor Adventures: Go hiking, have a picnic, visit a local parkCommunity Events: Attend free community events, concerts and festivalsLibrary: Take advantage of free resources and events are your local library. Ours offers free museum passes, zoo passes and a puzzle/game exchange
This actually even includes looking for those free activities when you travel.
11. Negotiate Bills and Rates
Negotiating your bills and rates can help you lower your monthly expenses. My husband loves getting a physical newspaper weekly. Once a year, I can and renegotiate the rate. You can also do this with insurance, phone and internet and sometimes on credit card interest.
Here's the one thing to remember...what is the worst thing they say? No? That's really not that bad now is it? It's worth asking and it really won't take you a lot of time to do. The savings will be worth it. I promise.
12. Set Savings Goals
Setting specific savings goals can help you stay motivated and on track. For me, it helps see what I'm working towards. If you have young kids, you might have the goal to start saving for their college accounts. Maybe it's working to pay more every month on your mortgage so you can pay off your home. Whatever it is, here are some tips on how to set goals.
How to Set GoalsBe specific: Define exactly what you're saving for and how much you need.Set a Timeline: Establish a timeline for achieving your goal.Track Progress: Regularly monitor your progress and celebrate milestones.
13. Avoid Debt and Pay Down Any Existing Debt
Avoiding debt and paying down any existing debt can free up more money for savings. If you currently have debt, creating a plan to start paying that debt off without accumulating more debt is a great first step.
If you do use credit cards, like we do, pay them off monthly.
14. Use a Savings Challenge
Savings challenges can make saving money more fun!
If you've wanted to try your hand at reselling and making money, why not make a competition out of it? I did a money making March challenge where I resold items and any of the profits went to a visit out of state to visit our daughter at college. You can read more about it here.
Other savings challengesNo Spend Challenge: I made a month-long commitment to buy only the necessitiesPantry Challenge: Try to stretch your food budget by using up items you already have in your freezer or pantry. 52-Week Challenge: Set a savings goal weekly and try to increase the amount you save each week.
15. Change Your Mindset
A lot of times when I'm thinking about all the things I do to save money, I think about the practical things those savings are helping me to afford. If I can spend a month selling off things in my closet on Facebook Marketplace and it helps me buy a plane ticket and pay for a hotel for a weekend trip, then it's worth it to me to stay motivated.
Every penny starts to add up.
It's these slow mindset changes that really start to add up in the long run. Maybe it's saving $10 on your grocery bill this week that you can allocate to your rideshare fund. Or it's saving $100 by making one of those meals you normally eat out, at home instead, those small savings can create big changes in your mindset that will allow you to become financially free and meet those savings goals you might have so that you can live well on less and afford the life you really want to be living.
Saving money every day doesn't have to be a chore. By implementing these practical strategies, you can cut expenses, boost your savings, and reach your financial goals. Whether you're dreaming of traveling the world or simply wanting to build a more secure financial future, these tips can help you get there. Start today and watch your savings start to grow.
disclaimer: this post may have affiliate links. By clicking on them and purchasing through them, I may receive a small commission. These small purchases help me to continue to keep writing content and creating at Rachel Teodoro. Thank you!
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