This blog is your roadmap to financial freedom and money saving tips.
We’ll ditch the jargon and explore actionable tips to jumpstart your savings. From crafting a budget to slaying impulse buys, we’ll unveil strategies to transform you from a spender to a financial master!
No one plans on falling under the bus of huge debts. It just happens, and the rising inflation rates are not the only thing to blame it for.
Extravagant habits precede it. You need effective money saving tips that can help you stray away from overspending.
Thomas Tusser says, “ A fool and his money are soon parted.” This is for all those thriftless, extravagant, overspenders, who think budgeting money is for losers and their credit cards are enough to get them through financial crisis. (1)
An article on the habits of debt-free people reports, “3 out of 5 Americans have a revolving credit card balance, averaging $5,875.”
People worldwide are getting knees deep in credit card debts and loans every month.
It’s time to break the cycle by developing frugal habits and start saving money with these life-changing money saving tips. (2)
Remember, it’s your commitment to savings that is going to reap your lifetime rewards! Here is a list of tried-and-tested money saving tips, that can help you avoid overspending.
15 Best Money Saving Tips For Families To Avoid Overspending
1. Start small, stay consistent
No change occurs overnight! Everyone has to start somewhere. Remember to start small and stay consistent to win at money saving techniques.
Good habits, just like bad ones, take time to develop and take control of your lives if you allow them to.
Don’t set a goal of saving half of your income in the 1st month. Start with a small percentage, like 5%, with a gradual increase of 2% every month. Taking the initiative is the most challenging task while developing frugal habits, but here’s what you can do to stay consistent and follow your money saving tips:
- Celebrate milestones, no matter how small. Seeing your savings grow will fuel your motivation.
- Share your goals with a friend or family member. Mutual support strengthens commitment.
- Focus on the journey, not just the destination. Building good habits takes time, so enjoy the learning experience.
“Do not save what is left after spending, but spend what is left after saving.”
Warren Buffet reveals that the secret to never going broke is prioritizing your savings at the start of the month. (3)
2. Prioritize Automating Savings
Allocate your savings as soon as you receive your paycheck.
This is one of the best money saving tips that helps you decide and plan exactly what amount you need to put in your kids’ college fund or personal trust.
Your savings should not become an afterthought, and you can use these money saving tips to ensure that:
- Automate a portion of your paycheck to directly deposit into a savings account, making it a seamless part of your financial routine.
- Begin with a manageable percentage of your income, and gradually increase it as your budget allows. Small, consistent contributions can accumulate significantly over time.
- Monitor your savings goals regularly to stay motivated. Seeing your progress can inspire you to keep saving for your future.
3. Switch to Digital Envelopes
Credit cards have made us lazy and stripped us of our financial awareness. Feasibility is a healthy concept only to a certain extent regarding spending. Credit cards enable overspending habits.
Instead, switch to cash payments, or even better, digital envelopes for best money saving tips.
It largely depends upon personal convenience and interest in what you want to choose for budgeting money. When using cash, you become more aware of how much money is leaving your pocket, and for what purpose.
However, cash payments mostly come with huge taxes. So digital envelopes allow you to stay more calculated and aware of your budget. Here’s why you should consider making the switch:
- Allocate your budget into virtual envelopes for different categories, like groceries or entertainment. Monitor your transactions effortlessly and see exactly where your money goes.
- Stay within your limits by monitoring the funds in each envelope. Digital envelopes prevent you from going overboard and is one of the best money saving tips by giving you a clear visual cue of how much you have left to spend in each category.
- Unlike cash, there’s no risk of losing or misplacing your funds. Digital envelopes keep your money safe and secure, while offering the same budgeting benefits as cash.
4. 48-hour Rule
Vicky Smith is one of my favorite YouTubers and she talks about this amazing self-discovery to control her overspending habit and saving money.
We all experience a rush of excitement whenever we shop online and that’s the dopamine and endorphins, or feel-good hormones, taking their toll on us.
But here’s my perspective. Did you all notice that 90% of the time, that excitement turns into gloominess once your order gets confirmed?
It’s called buyer’s remorse, and it feels like your bank account has suddenly hit a wall.
Sharing her money saving tips, Vicky says that once you add something to your cart, and the endorphins rush your system, leave it there for 48 hours.
It leads to the following actions:
- By introducing a time delay, you give yourself a chance to detach from the emotional high of the purchase. This allows for rational thinking to take hold. Do you truly need this item? Have you compared prices elsewhere? The 48-hour wait allows you to make a more informed decision, not one fueled by fleeting excitement.
- Retailers are well aware of buyer’s remorse and strategically employ tactics to capitalize on it. Leaving items in your cart can trigger them to send you discount codes or abandoned cart reminders. This can lead to significant savings, especially if you were initially caught up in the excitement of the purchase and didn’t consider potential price drops.
5. Plan Errand-Runs Strategically
Making a list at the start of each month often leads to more errand runs because you possibly cannot remember everything you will need for the whole month.
Instead of monthly grocery shopping, switch to weekly strategic shopping for effective money saving tips.
Switch to strategic weekly errand runs from haphazard monthly shopping. Planning a week is way easier and saves you a bunch of time and fuel that gets wasted in 10 visits to the mall or local market.
Make your shopping strategic using the following money saving tips:
- Group similar errands geographically to maximize efficiency.
- Reduce impulse purchases by planning meals for the week and creating a list based on your plan. (4)
6. Empower With Budgeting- How to Budget Money on Low Income
Creating a budget is not for broke people, but not creating one is what makes people broke.
Budgeting money does not restrict your wants and is one of the crucial money saving tips. It empowers you to fulfill them, while never having to worry about being broke.
Instead of thinking of a budget as a restrictive spending tool, think of it as your friend who is going to lend you money for that trip across the world you have been dreaming about. Now let’s see how we can create a money-saving budget through some money saving tips:
- Just set aside a certain amount every month and call it a splurge fund. This is my favorite guilt-free method to buy whatever I want without having to worry about going out of budget or overspending.
- Set specific, measurable, achievable, relevant, and time-bound (SMART) goals. They keep you motivated.
7. Always Have A Side Hustle
People who never overspend often focus on ways to increase their income through effective money saving tips.
There are many options to choose from to earn a little extra. For instance, rental services, freelance writing, handyman services, whatever resonates with your interests, cash it. You can find more side hustle ideas here.
Side hustles give your finances a stretch, so you don’t have to worry about income problems. The key is to find the side hustle that gives you big payouts with little effort or resonates with your interests. Here’s how you can find out:
- Leverage your existing skills for freelance work, online tutoring, or consulting gigs.
- Platforms like Upwork, ride-sharing, or delivery services offer flexible earning opportunities that fit your schedule. (5)
8. Invest Your Savings
Stock markets often scare people and instill the fear of losing all their money. But remember, you are not Warren Buffet.
Educate yourself with money saving tips. There are dummy apps in the Play Store that you can download and learn to invest in stocks using fake money.
These can also help you remember essential money saving tips and habits.
Stop loss is your golden ticket. Set the stop loss limit to determine what line are you not willing to cross when the stocks are dropping.
History has proven that there is no better way to grow exponentially. Here’s a beginner’s guide to investing your savings in stocks and crypto:
- Use educational resources and simulated trading apps to learn the ropes without risking real money.
- Employ stop-loss orders to automatically sell your holdings if they fall below a certain price, limiting potential losses.
- Building wealth through the stock market takes time. Focus on buying and holding solid companies for long-term growth.
9. Live Below Your Means
Live below your means might sound restrictive, but it’s the secret weapon of financially successful people.
A study by the Pew Research Center found that individuals who spend less than they earn are more likely to report feeling in control of their finances and have a brighter outlook on their future.
These money saving tips translate to less stress, a healthier emergency fund, and the freedom to pursue your goals, whether it’s a dream vacation or a comfortable retirement.
Here are a few money-saving tips to live below your means:
- Studies by the USDA consistently show significant cost savings when preparing meals at home versus regularly eating out. (6)
- Public libraries offer a wealth of resources and programs, from book clubs to movie nights. Take advantage of these free activities to save on entertainment costs.
10. Set Life Goals
Having clearly defined life goals is a powerful financial motivator and one of the best money saving tips.
A study published in the Journal of Personality and Social Psychology found that individuals with strong financial goals were more likely to save and invest consistently.
Knowing what you’re working towards – a dream home, a comfortable retirement, or that epic family vacation – keeps you focused and helps you avoid impulse spending that can derail your financial progress.
- Start by brainstorming your short, medium, and long-term goals. Write down everything you can think of, no matter how big or small.
- Once you have a comprehensive list, prioritize your goals based on importance and timeframe.
- Develop a simple action plan for each goal. Research estimated costs and break them down into manageable savings targets.
11. Maintain Your Property
A study by the National Association of Home Builders found that routine maintenance can prevent costly repairs down the road, such as replacing a leaky roof or a failing HVAC system.
If you want to follow money saving tips and develop good financial habits, do this!
Regular property maintenance not only keeps your home safe and comfortable, but it can also save you money in the long run.
Additionally, a well-maintained property tends to appreciate, boosting your net worth.
- Develop a schedule for preventative maintenance inspections. This might include annual HVAC servicing, biannual gutter cleaning, and regular smoke detector checks.
- For the handy homeowner, tackle some simple DIY projects to save on repair costs. Learn how to fix leaky faucets, change air filters, and mow your lawn.
- Allocate a portion of your budget specifically for property maintenance. These money saving tips will help you plan for unexpected repairs and avoid scrambling financially when they arise. (7)
12. Learn To Say NO To Loans
While loans can be helpful in certain situations, learning to politely decline them can be a powerful financial tool and one of the best
According to a 2023 study by the Federal Reserve, outstanding household debt in the United States has reached a staggering $17.69 trillion.
A significant portion of this debt stems from personal loans. (8) Here’s how:
- Interest rates on loans can accumulate significantly over time. Saying no to a loan eliminates this burden, allowing you to save more and reach your financial goals faster.
- Declining a loan encourages you to rely on your existing resources. This, in turn, can motivate you to create a budget and prioritize saving.
Here’s how you can avoid getting stuck in personal loans:
- A simple “direct no” is perfectly acceptable.
- If you’re uncomfortable saying no directly, you can briefly explain your reasoning.
- Explore options like negotiating a payment plan, seeking discounts, or exploring used items.
13. Unfollow Pretentious Lifestyle Influencers
Social media has a significant influence on spending habits, particularly for young adults.
Unfollowing accounts that promote lavish spending habits can help you avoid impulse purchases and make more deliberate financial decisions. (9)
Social media often showcases a distorted reality, blurring the lines between needs and wants.
Limiting exposure to such content can help you focus on fulfilling your actual needs and prioritizing your financial goals. Here’s what you need to do:
- Seek out accounts that promote mindful spending, saving strategies, and financial literacy.
- Don’t be afraid to unfollow accounts that tempt you to overspend, even if they are popular or belong to friends.
- There are many financial advisors and educators with informative social media presences who can provide valuable tips and guidance.
14. DIY Your Cleaning Products
A study by Consumer Reports found that the average household spends over $600 per year on cleaning products. (10)
By crafting your cleaning solutions, you can slash this expense dramatically.
Basic cleaning staples like vinegar and baking soda cost a fraction of name-brand cleaners, and a single container can create numerous cleaning concoctions.
DIY cleaning products promote a healthier household and a greener planet by eliminating harsh chemicals and reducing reliance on single-use plastic containers.
Making your own cleaning solutions is surprisingly easy! Here are a few tips to save tons of money: (11)
- Combine equal parts white vinegar and water in a spray bottle. For a fresh scent, add a few drops of your favorite essential oil (lemon, lavender, etc.). This is a disinfectant and degreaser powerhouse!
- Create a paste with baking soda and water. This non-abrasive yet effective cleaner tackles tough jobs on sinks, ovens, and bathtubs.
- Mix one part vinegar with two parts water in a spray bottle. This streak-free solution will leave your windows sparkling clean.
15. Thrift!
Thrifters tops the bargainers. Thrifting a mindful approach to shopping that benefits your wallet and the environment.
The fashion industry is a major contributor to global pollution. Thrifting fights fast fashion’s environmental impact and gives perfectly good items a new lease on life, keeping landfills at bay and our wallets happy! (11)
Here is a beginner’s guide on how to thrift to avoid overspending:
- Thrifting can be enticing! Having a budget helps you avoid impulse buys and ensures you stay on track with your financial goals.
- Develop a keen eye for quality and potential. Look for well-maintained items with minimal wear and tear.
- Thrifting is an adventure! Don’t go in with a rigid list; be open to unexpected finds and unique pieces.
In conclusion, building financial security is achievable through mindful spending and strategic saving.
By incorporating these tips, like creating a budget, embracing frugality, and prioritizing debt repayment, you can empower yourself to take control of your finances.
Remember, small changes, consistently applied, can yield significant results. Start your journey today and watch your savings grow!
Want to learn more about financial literacy and how to achieve cash flow independence? Read more here.
- Financial Management 101 – 12 Life-Changing Hacks To Cut Monthly Expenses
- 21 Online Passive Income Ideas For Beginners
- 20 Part-time Work From Home Jobs With Zero Investment
