Finance
Self-help
Lifestyle
Personal Finance
Savings
Financial Planning
Saving Money
Wealth Building
Most people suck at saving money.
I was able to save over $40,000 by 21 without making more than $1,500/month.
If you want to save more money, use these 10 strategies:
I was able to save over $40,000 by 21 without making more than $1,500/month.
If you want to save more money, use these 10 strategies:
1. Pay yourself first, spend second
99% of people spend their paychecks, then save what’s left over.
If you want to save more money every month, save a % of your paychecks first
Then spend what’s left over.
99% of people spend their paychecks, then save what’s left over.
If you want to save more money every month, save a % of your paychecks first
Then spend what’s left over.
2. Have an emergency fund
Here are your options if you don’t have an emergency fund:
- Withdraw investments
- Credit card debt
- Personal loan
These will literally make you poorer.
But an emergency fund ensures you don’t have to go into debt or sell investments at a loss.
Here are your options if you don’t have an emergency fund:
- Withdraw investments
- Credit card debt
- Personal loan
These will literally make you poorer.
But an emergency fund ensures you don’t have to go into debt or sell investments at a loss.
3. Automate your savings
Set up automatic contributions to your savings and investment accounts.
It doesn’t matter if it’s only $50 every paycheck.
Something is better than nothing.
Make it easy on yourself and save money automatically.
No effort.
Just savings.
Set up automatic contributions to your savings and investment accounts.
It doesn’t matter if it’s only $50 every paycheck.
Something is better than nothing.
Make it easy on yourself and save money automatically.
No effort.
Just savings.
4. Take your 401k match
A 401k match is a retirement plan where your employer *often* matches what you invest.
If the match is 5%...
Investing 5% of your salary means your employer will also invest 5% of your salary.
This is the easiest way to double your money.
A 401k match is a retirement plan where your employer *often* matches what you invest.
If the match is 5%...
Investing 5% of your salary means your employer will also invest 5% of your salary.
This is the easiest way to double your money.
5. Don’t spend windfalls
A windfall is when you gain money you didn’t plan for.
- Income tax returns
- Additional pay
- Inheritances
These are all windfalls.
Instead of seeing it as more money to spend.
Save it immediately.
And continue to spend according to your plan.
A windfall is when you gain money you didn’t plan for.
- Income tax returns
- Additional pay
- Inheritances
These are all windfalls.
Instead of seeing it as more money to spend.
Save it immediately.
And continue to spend according to your plan.
6. 30-day rule
For all expenses that are unplanned, give yourself 30 days before buying it.
If you still want it after 30 days, buy it.
If you don’t want it anymore, deposit the money you would’ve spent into your savings.
This will always be a win-win situation.
For all expenses that are unplanned, give yourself 30 days before buying it.
If you still want it after 30 days, buy it.
If you don’t want it anymore, deposit the money you would’ve spent into your savings.
This will always be a win-win situation.
7. Reduce spending
Food, housing, and transportation make up 50%+ of your spending.
For food: eat out less and cook more.
For housing: Buy what you need, not what you can afford
For transportation: Focus on the purpose, not the appearance
Food, housing, and transportation make up 50%+ of your spending.
For food: eat out less and cook more.
For housing: Buy what you need, not what you can afford
For transportation: Focus on the purpose, not the appearance
8. Increase income
If you for some reason can’t save any money with your current income and expenses you have 1 option.
Make more money.
But this only works if you keep your spending the same.
If you spend more as you make more, you will never save money.
If you for some reason can’t save any money with your current income and expenses you have 1 option.
Make more money.
But this only works if you keep your spending the same.
If you spend more as you make more, you will never save money.
9. Eliminate debt
When you pay down debt you increase the amount of cash flow you have.
If you’ve been paying $400/month towards student loans or car loans,
Once those debts are paid off, you have an extra $400/month to work with.
This should go straight to savings.
When you pay down debt you increase the amount of cash flow you have.
If you’ve been paying $400/month towards student loans or car loans,
Once those debts are paid off, you have an extra $400/month to work with.
This should go straight to savings.
10. Round ups
Some banks and investment apps have round up features.
They’ll round purchases to the nearest dollar and save that amount for you.
So if you spend $11.50 on lunch, $0.50 gets saved/invested.
You’ll save money 24/7 and won’t feel it.
Some banks and investment apps have round up features.
They’ll round purchases to the nearest dollar and save that amount for you.
So if you spend $11.50 on lunch, $0.50 gets saved/invested.
You’ll save money 24/7 and won’t feel it.
TL;DR:
How to save more money every month:
1. Pay yourself first, spend second
2. Have an emergency fund
3. Automate your savings
4. Take your 401k match
5. Don’t spend windfalls
6. 30-day spending rule
7. Reduce spending
8. Increase income
9. Eliminate debt
10. Round ups
How to save more money every month:
1. Pay yourself first, spend second
2. Have an emergency fund
3. Automate your savings
4. Take your 401k match
5. Don’t spend windfalls
6. 30-day spending rule
7. Reduce spending
8. Increase income
9. Eliminate debt
10. Round ups
If you learned something from this thread, please share it so others can learn too.
And don't forget to follow for more: @yestoriches
And don't forget to follow for more: @yestoriches
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