Hey, all! Today’s post comes from Brian, who is the owner of Grind Fit Gear and founder of Millennial Money Guide. He launched Millennial Money Guide in order to share his experience and knowledge in finance and entrepreneurship. He teaches others how to balance finances with living a great life now and preparing for the future through entrepreneurial ventures and fiscally smart decision making. Hope you enjoy his post!
It’s not always easy to spend less than you make, but it can be done. You can start by setting up realistic goals and some basic rules and watch it happen. These rules are designed to keep you from overspending on things you need. On the flip side, they will also keep you from overspending on things you don’t necessarily need, kind of want, but would buy if you had the chance. Go through the few tips below and apply them in your life. When you do, you may quickly find that you are saving more and building great money habits.
Sleep on it. When you are faced with a discretionary purchase, do your wallet a favor and sleep on it. If you’re not thinking about it the next day, whatever that item may be, then you didn’t really want or need it anyway.
Have a coupon? Just because you get a coupon in the mail for 20% off Nike shoes, doesn’t mean you should go shopping for new shoes. It’s as easy as that. If you are using the coupon for needed items such as groceries or essentials, then utilize them to save as much money as possible. Doing so can help you save money on things you actually need. Creating a strategy helps you utilize coupons efficiently, and not as an excuse to go shopping.
Free can be expensive. There is simply a cost to everything and if you can’t measure it in monetary values then you have to account for time. That “free” iPhone that AT&T is offering you? I bet it requires a long-term two-year contract. The “free” companion airline ticket? Odds are that you have to buy one first at full price. That “free” vacation to Hawaii? Bet on having to listen to an annoying sales pitch about why you should buy a timeshare before you get your vacation. I am not saying you should not take advantage of these offers. However, you should understand the time value of money and what you’re really paying.
50% off is still 50% on. Not having a budget for shopping put in place can lead to people getting happy when they see S-A-L-E. You are likely to be susceptible to buying items when there is a huge gap between the discount price and the sales price. You may feel really happy that you got a great deal, at the cost of still forking over money that you could have saved.
Make a budget, and stick to it. The easiest way to not overspend is to create a budget and stick by it. My go-to budgeting app is Mint, which runs perfectly after an initial few weeks of creating a budget and syncing your accounts in order to track all your purchases. Nothing will slip through the cracks as it takes into account all your financial accounts and notifies you if you have overspent in a certain category for the month.
Once you implement these tactics into your life, you can start saving money and start building wealth. With the above-mentioned ways, it would be easy for you to save some money while eliminating bad financial habits. None of these tactics will be life-changing on their own, but if you start implementing a few of these tips in your life then it can make a difference. So why not start today in order to start saving some money?