How To Spend Less and Save More
Are you frequently short of cash? Do you have to borrow money to pay your bills? If you were unable to work for a month, would you be in a financial crisis? Try spending less and saving more to get better control of your finances. Here are some strategies:
- Reduce Your Expenses — Do everything you can to lower your expenses and put the savings in the bank. Make less-costly lifestyle choices, such as homemade food and drink instead of lattes and take-out; thrift vs. department stores; going to the library for books and movies. Drive a fuel-efficient car instead of a fully loaded gas-guzzler. Use public transportation, bike and walk instead of driving and paying for parking. Get rid of extras like call waiting, cable, high-speed Internet, multiple cell phones or the second car unless they are helping you make or save money.
- Increase Your Income — If your income isn't enough to cover expenses and build your savings, find ways to earn more. Increase your skills to move up the corporate ladder. When possible, work overtime or take a second job. Provide services like childcare, dog-walking, house-sitting, gardening, etc. Sell items you don't use or need. Bank your coins — eventually, they will add up to enough cash to pay a bill or treat yourself.
- Change Your Spending Habits — Make a weekly or monthly budget and stick to it. Spend less time browsing the store aisles to avoid impulse buys. Make a shopping list in advance and stick to it. Choose generic or off-brand items. Use coupons and wait for sales.
- Save Some Money Every Month —Put aside some amount of money every week, even if it's only $5. Eventually your savings will add up to enough to help you with emergencies (like job loss or disability), unexpected expenses (like a broken appliance or vehicle), or life events (like starting a family, going on vacation or retiring). Savings also help you avoid costly and unnecessary credit card debt.