How to save money fast

March 26, 2021

Do you feel secretly guilty when the topic of saving money comes up? You have good intentions to save money, but then surprises come along the way. The kids need new shoes, the car needs fixing or you got a leak in the bathroom.

Having money saved while living a happy life is the goal to many. This money buffer brings the feeling of safety, which is a basic human need.

Follow the below tips and you will be able to save money fast.

How to save money fast

Buy only the clothes and things you NEED. Wait with your “WANT TO HAVEs”.

Buy it second hand, it is better for the environment and your pocket!

Track your last month expenses, put in an excel, and evaluate where you are spending money. You will be shocked to see how much the small buys can eat up your funds.

Consolidate your debts and make a payment plan. Then make sure to pay-off your debts. This is the area where most of your income should go to, until you are debt-free.

Re-negotiate your mortgage. Even a small percentage change will create a big effect in the long term.

Go through all your subscriptions and then cancel them, even if for a period only. This includes even the free memberships and newsletters you get via email and sms tempting you to buy things you don’t NEED.

On your leisure time, choose activities that are free. Playing sports on public courts, go to the forest, park or beach, rent library books, etc. You would be surprised how much there is available for free.

When socializing with friends, trade the expensive dinner to a picnic in the park or a coffee instead.

Pack your own lunch to work or eat at home.

When doing groceries: buy seasonal food items, products that are generic and not from famous brands, check out for discounts and coupons. And NEVER do groceries when hungry 😉

Make use of “Share-Economy” and trade services and things instead of money. There are several platforms for doing that.

Rent your home when you are away to earn extra income. (ex: via AirB&B- link)

Declutter your home and sell all items you don’t need. You can do a garage sale, or post the items in platforms as Facebook Marketplace or Ebay.

Negotiate your salary increase smartly. Understand how the company’s budget is set. Sometimes they cannot give you a salary raise but they can give you other benefits as it would come from another budget (ex: sponsor courses, support on transportation, improve your pension plan, etc). Or find a side hustle.

Automate your savings. Once you calculated your budget and decided how much you can save per month, automate the process. Ask your bank to move that amount every month to your savings account. This way you don’t need to think about it nor be tempted to use that money if you see it laying in your account. It’s recommended to save at least 10-15% of your income.

Set goals. This is one of the best ways to keep you motivated and keep the eye on the ball. Here are some examples of short and long-term goals:

Once you managed to save some money and paid your debts, then you can start investing your savings. Make the money work for you. To get tips on how to start investing your savings, check out the article “How to start Investing”.

REMEMBER: It doesn’t matter how much money you make. What matters is how much money you save.

As a final tip:

Try Dave Ramsey’s Zero-based budget strategy. Where you subtract your income from your expenses to equal ZERO.

It may take a few rounds. You may need to increase or decrease some numbers, but the goal is to come to zero.

Name the buckets (categories) and decide how much goes in each bucket and for what. By naming your money, or assigning it a job to do, you can be more intentional about how you spend it. Bare in mind that the Zero Budget does not mean you will have zero money left in your account every month. It means every money you have will have a name / function.

Now that you know how to save money fast, JUST DO IT!