Are struggling in paying huge debts from previous loans and credits? Take a look at the piles of items inside your house and car and say, “I suck at handling and saving my money.”
These statistics show that these people need to borrow money to pay for an emergency expense because of a lack of savings.
Once you read my blog, you will notice I help my audience earn significant profits through entrepreneurship, social media marketing, and startups. Like everyone else, you don’t want to be buried in a tight, recurrent financial burden of paying bills and debts. Let me help you rise from the tight loophole of debt and unnecessary expenditures.
Today, we’ll share with you the best hacks on how to save money fast to maximize your income and profits this 2021.
Do a self-assessment of wants vs. needs and compare it with your current budget
Every attempt to save money starts with self-assessment. Ask yourself: “What are the items that you actually need? What are the things that I do not need as of the moment?”
Learn to separate wants from needs, align spending to current budget and salary, and monitor and pay bills diligently.
Determine how much you need and compare it with your current budget
Start your plan by knowing how much you need for a specific item or activity and the amount of time required to save it. Divide your target amount with the number of available months or weeks before the deadline of payment.
Then, compare your target savings with your current budget and regular salary to see if the target is realistic to achieve.
For example, “Can I save $125 per week from my salary for a $1,000 vacation trip eight weeks from now? Is it worth it to save the money for the trip, or can I assign the same amount for a monthly mortgage?”
Monitor bill deadlines
You can be so busy with the daily hustles that you tend to forget to pay essential bills on time. Avoid overdue bills by monitoring your bills and paying them before the due date.
For those with a steady income, set an automated payment for bills ideally before the due date. If you have an irregular salary, use apps like Steady to search for side jobs when payday is nearing.
Leave the favored item for at least 24 hours
If you intend to buy an item, leave it and reflect within 24 hours if it is really worth buying. Ask yourself these questions:
- Can I survive without this item?
- Can I actually afford to buy it?
- Will I even use or wear it?
If the answer is YES and you still think of the item for the next few days, feel free to purchase it.
Do a Saving Spree
A saving spree involves dedicating time and effort to save and avoid spending money for a definite time.
Saving sprees are challenging because you save money on a daily to weekly basis. You can allocate a portion of your budget for savings, monitor it discreetly through apps, and switch banks to maximize savings.
Create a weekly or monthly budget specifically for savings
Setting a weekly or monthly budget is already common knowledge, but it is difficult to allot an income portion for your savings. Once branded as savings, it should for impulse, convenience, or daily buying.
Save at least $400 in a savings account as an emergency fund or until the target item is for payment.
Use apps that promote budget-saving
If you are slack in handling expenses and often forget to save money, have budgeting apps monitor your money. Budgeting apps like CoverWallet help you create budgets, track bills, and compute money for long-term savings.
Switch to banks with the best savings promotion
You can switch to banks that offer free starting accounts or avail accounts with great sign-up bonuses to maximize monthly savings.
Stop unnecessary spending and live according to your own means.
One of the significant obstacles in saving money is the persistent urge to spend money on attractive, convenient, and on-sale items. Instead of spending money on last-minute sales and item hoards, live according to your salary, control impulsive buying, and stop unnecessary spending.
Pay with cash or control spending from credit cards
Train your mind to spend only within your limits by paying for items through cash instead of using credit cards. A $100 cash means you only spend up to $100 and no more.
Purchasing using your credit card makes you pay beyond $100 and justifies higher spending. Yet, if you prefer credit card payment, set spending limits, limit cards away from sight if possible, and avoid overspending.
Purchase a smaller and affordable house
Practicality always wins in terms of saving money. Purchase a smaller and affordable house within your budget to help you save more money and lessen home maintenance costs.
Trim down insurance costs
The best way to save money from monthly insurance expenses is by acquiring a low-cost home insurance policy within your budget.
Avoid unnecessary online subscription services.
To be an efficient saver, avoid unnecessary online subscriptions that are way beyond your budget, like Netflix, Amazon, and Spotify. Examine previous bank transactions associated with these subscriptions and unsubscribe to reassign your money into savings.
For each subscription you purchase, ask yourself:
- What is the purpose of this subscription?
- Will I really use it?
- Is it worth keeping or not?
Avoid fast food and outdoor dining and indulge in home-cooked meals
We all have to eat, but you need to have a serious mindset of saving money by limiting outdoor and fast food dining.
You can have outdoor dining once in a while when your budget permits. Until then, prepare and eat home-cooked meals and recooked leftovers that are affordable, nutritious, and good for groups.
Avoid indulging in too much TV
You can trim down the length of time watching television to save money significantly. Aside from lowering electric and cable bills and less exposure to spending-triggering advertisements, it allows focusing on other financial priorities.
Create a shopping list, compare prices from grocery stores, and buy in bulk, as needed
Creating a list of items before you shop limits money spending by sticking on the list. It also avoids food spoilage by buying items within the meal plan.
Every time you go outside your house, stick with a shopping list and always compare grocery stores’ prices. Settle with the price within your budget, buy wholesale especially essential items, and transfer to another store, as needed.
Look for other sources of income and money
If your job barely sustains your needs, the best option to save money is to look for potential money sources. Look for possible money and income sources from old bank accounts, debts by others, rewards and cashback, side jobs, and renting out rooms.
Set a schedule and collect debts from others and previous bank accounts
Develop diligence and motivation in collecting what is owed to you by others as this owed money is a potential savings reserve.
Also, take time to rummage in almost-forgotten bank accounts and withdraw the remaining money left. Close the bank account after withdrawal to avoid interest accumulating in the bank account.
Sign up for rewards, cashback, discounts, and loyalty points, with discretion
Collect rewards and points from your previous credit card transactions, discount cards, cash backs, and club membership and convert them into savings. However, avoid the habit of frequently using credit cards, shopping, and club membership to obtain higher rewards.
Get extra work hours or look for side jobs
If you have already exhausted efforts for a regular job and still cannot achieve your target savings, make some work adjustments. You can request additional work hours or even get a side job to augment your current salary.
Side jobs can include:
- Freelancing jobs like writing, social media management, online teaching, and marketing
- Cleaning houses
- Walking dogs
Sell unnecessary, excess, or unused stuff in the house
Have the initiative to sort out essential from unused or unnecessary house items. Once the essentials are identified, sort out possible things good for sale:
- Functional appliances
- Designer clothing
- Collector’s items
- Old toys
Determine their current market value and arrange them for a garage or yard sale or sell them to thrift stores. You might be surprised as to how many hundred bucks these ‘unnecessary items,’ especially collector items, can add to your savings.
Declutter and sell excess stuff
Be inspired by Marie Kondo and start decluttering your home from unnecessary, excess, or unused but sellable items. Research and identify the best way to sell old things, including their market value, and prepare them for sale.
Repair reusable items as necessary
Make good use of reusable items like clothing and containers and turn them into purposeful things. Watch online videos about repairs and repair, sew or cut old clothes for a new clothing style.
Repairing clothes lengthen the clothing lifespan and help save money from external repairs or buying new clothes. For containers, show creativity by turning old plastic containers into plant pots, cloth containers, or vases to save money.
Turn off lights and electricity
Turning off lights and appliances once not in use or leaving at home conserves energy, lessens the electric bill, and saves money. You could turn off the lights in the daytime and let the sunlight enter your house to conserve electricity.
Install and use energy-saving lights and appliances
Although energy-saving LED lights and energy-efficient appliances initially cost more than their counterparts, these appliances help save energy and electricity. Higher energy-saving capability means fewer electricity bills and more chances of saving money than purchasing new lights and appliances.
Invest in time, energy, and electricity conservation
One of the great ways to save money is conserve time, energy, and electricity to do home chores and travel.
Use fuel-efficient cars or do public transportation
A dependable, fuel-saving car can help you save thousands of dollars in the long run, compared with its usual counterparts. For example, choose a vehicle that reaches 25 miles per gallon of gasoline over 15 miles and save $3 per gallon.
Besides, you can also do public transportation to cut high costs on travels and parking fees to help save money.
Run a regular home and car maintenance check
Routinely check your home appliances and car for dust and dirt buildup. Do regular cleaning of refrigerators, dryers, washing machines, heating units, and your vehicle.
Removing dirt and dust buildup improves the appliances’ efficiency, saving you on increased energy bills and repair costs. Likewise, regularly cleaning your car improves its lifespan and efficiency.
With this guide, saving money fast is definitely achievable for you this 2021. You could apply what I said to your 2021 budget and target savings with the best money-saving hacks. Together, we can save more and spend less, and look forward to a brighter future.
All it takes is a proper saving mindset and self-control to discover the saving hacks that work best for your needs. Create a savings-friendly budget, avoid wasteful spending, declutter and sell stuff, do side hustles, and conserve energy and time for higher savings this 2021.
Liked this article? Check out great ideas on how to earn huge profits through the internet:
- How to Increase Your Traffic to 250k/month
- How to Make a Million Dollars with your E-commerce Store
- How to Create a Social Media App for your Business
Did you find this article helpful? Let us know in the comments below what money-saving hack works best for you! And don’t forget to share with a friend.