Saving money can seem so tough. You want to afford a house, have enough for tuition for college, that next holiday or just build an emergency fund but it seems so daunting. Fortunately, saving money doesn’t have to be difficult, even on a tight budget. Deciding to spend less money on things you don’t need can open up more freedom to build your savings, afford something like a holiday or possibilities to cut back how much you work in a given holiday.
Chasing after more money isn’t typically the best way to build your savings. You might work harder and longer for a bit more money but is it really worth the time, stress and implications on your health and relationships? This is only a question you can answer yourself as everyone has varying motivations for chasing after more and more money.
Personally, I’d rather enjoy my life and live comfortably. I want to be able to maintain a certain standard of living but without the need to constantly work just to buy things I don’t really need or value in my life. Saving money has been a tremendous focus for me recently and I wanted to share some tips to help you save.
1. Bring lunch to work. There’s no doubt that preparing your own lunch and bringing it into work can save you thousands a year. In most cities, you will be hard-pressed to find a cheap lunch and especially a cheap and healthy lunch. You can even make a bigger portion of food for dinner and save the leftovers for lunch the next day. You don’t have to ditch eating out for lunch everyday but try to bring lunch into work most days. As a result, your health will improve as well as your savings.
2. Check if your company has perks. Some companies provide their employees with rewards and perks. You might easily dismiss these perks because the website looks overwhelming but you could save hundreds, if not thousands of dollars by checking out the perks. For instance, my company provides me with heavily discounted movie tickets and as a frequent movie-goer, this can save me money instantly. I earn discounts on gift cards for shopping and cashback for my purchases. Your company rewards may seem overwhelming at first but browse what the offerings are for just 10 minutes and you might be surprised at the amount you can save.
3. Refill your bottled water. There’s no reason to keep buying new bottles of water, plus it’s not an environmentally friendly choice either. Reuse your bottle of water by refilling it with filtered or clean tap water. Those few dollars you spend on a new bottled water add up quickly once you stop purchasing this item.
4. Plan fun things to do with your friends and family that don’t involve spending money. You can have quality time with your loved ones by changing the activities you do. Going out for drinks and dinner can be a standard for many people but it gets expensive quick. Typically, I like inviting people over to hang out, hiking, a picnic at the beach or other cheap activities that are memorable and fun. Be on the lookout for festivals happening around your area that you can attend with your loved ones. Some of the best activities are cheap or free.
5. Be generous without spending money. Some of the best ways to show kindness is by not giving away your money. If you love giving back the community but find that you are spending too much money donating to fundraisers or doing other charitable activities, then find other ways that you can give back. Volunteer your time, offer to help someone tidy up their home or do something else that is kind through your actions. If you have loved ones that generously offer you money, even without you asking, then find other ways to show your appreciation.
6. Cancel subscriptions you rarely use. I used to have Netflix which is a great service but basically, I’d come home and rarely watch Netflix. Even though the monthly subscriptions are low, I realized that it’s extra money that I don’t need to be spending. So, I got rid of my Netflix subscription and haven’t looked back. Take an honest appraisal of anything you are subscribed to. If you feel it’s something you aren’t getting much out of anymore then there’s nothing wrong with getting rid of it.
7. Walk or take public transport to work. I realize this may not be an option for everyone but you could save plenty of money by opting to take public transport to work. Even walking could be an option. For me I sometimes combine my daily workout and saving money by running or walking to work. I’ll usually take public transport back home. Who knows you might not even need a car, depending on where you live, if you can get around easily via public transport. When I moved to Sydney, I had to sell my car in the United States and cutting back on that expense has saved me thousands of dollars each year. Plus, I minimize my impact on the environment which is a huge bonus.
8. Decide on how much you need to live comfortably. Take a good hard look at your life and be upfront with yourself about what you value in your life and need to be happy. You should consider any outstanding debt you have, if you have a family to help support and your own personal goals over the long-term. For now, living in an affordable 1-bedroom apartment is perfect for myself and my partner. Sure, our combined income allows us to afford a bigger place but we don’t need a bigger place and would rather that extra money goes directly into our savings. Also, being healthy is a huge priority for me, so things like eating out, alcohol and other items are great to splurge on occasionally but not something I want to spend large amounts of money on each month. Your values are different to mine, so be honest with yourself about what you need. You might find that working long hours to achieve a high income doesn’t really fit with your lifestyle and might cause more problems in the long-term. Or you might realize that to pay off debts you need to sustain a stable job that earns a specific amount and cut down on your spending.
Strive to live comfortably and be appreciative of the many things you do have. Chasing after a certain type of lifestyle by chasing after money will probably not give you happiness, also it makes you feel like there is a deficit in your life. Find the balance between earning enough that you can provide adequate support for your family and yourself while living a peaceful and content life.