How to save money

By knarf

Rate: (30 Ratings)

There's an old cliche in finance world: "You need to have good defense or offense - save more or make more." There are many ways to save money and it could go a long way toward helping your budget.

Instructions

Difficulty: Moderate

Things You’ll Need:

  • Dicipline

Step1
Cut down on coffee drinks. If you put into savings $4/day you would have spent on a latte at Starbucks, the money would grow in 30 years at 5% interest to $100,000.

If you do want something to drink, buy a bottle of juice: It's better for you and cheaper.
Step2
Pack lunch. Spending $5~$10/day going out to lunch will quickly add up.
Step3
Whenever you buy anything ask yourself 3 times "do I really need this?" Chances are your quality of life would be better without it.
Step4
Power of compounding interest. Basically, saving when you are young will put time on your side. When you are ready to retire in 20~30 years, your money will be earning serious interest.
Step5
Spend money on people, not things.
Step6
Live just beneath your means. You don't have to be live like a pauper to save money, just go one step below what you could get. Instead of a BMW, buy a Acura. Instead of a two week vacation, go for 10 day vacation. Save the rest!

Comments

| View All Comments
Flag This Comment

on 6/3/2008 My favorite way to save money is by going to www.dynamicshops.com before I purchase anything online. Almost every major store is listed there, and if I use their link, I get Cash Back on my purchase! If my friends make a purchase, I get a commission, too. What a fun way to save and earn money!

View All

Post a Comment

POST A COMMENT

Request a New How-To Article

Looking for more How To information? Chances are there’s an eHow member who knows how to do what you’re looking to do. Submit an article request now!

eHow Article:  How to save money

eHow Member: knarf

knarf

Authority Authority | 4934 Points

Category: Personal Finance

Articles: See my other articles

Related Ads

Personal Finance

mpcussen
Meet Mark Cussen eHow’s Personal Finance Expert.