How to Save Money Aggressively

Member

By WriterGig
User-Submitted Article

Article Rating:

(6 Ratings)

How to Save Money

Wondering how to save money? Whether you're overspending by a wide margin every month, or simply want to be more frugal with your money, there are many ways to make a dent in your spending and increase your savings each month.

Once you're actively looking for ways to save money, making less costly choices will become second nature. Transferring your savings to savings or investment accounts is the next habit to instill so that you are truly saving your money.

Difficulty: Moderate

Instructions

Step 1

Track spending for a month, saving receipts and noting cash purchases, to learn definitively how you are spending your money, as well as when and where.
Step 2

Review spending habits, from large expenses like rent and loan payments to small purchases like cafe mochas and deli sandwiches, from your month of tracking.

Note any patterns in your discretionary spending, such as morning coffees bought on the run or Friday shopping splurges for clothes or home decor.
Step 3

Make a budget, or spending plan, including on your income, set expenses, savings goals and disposable income. Sticking to your budget may be challenging at first if you have never had one. Give yourself a couple months to really nail it, as it is a learning process and patience is key.
Step 4

Come up with ways to save money in your discretionary spending. Could you make do with the clothes you have for the time being? Perhaps have only one drink at your Friday happy hour?
Step 5

Make more meals from scratch, and try buying consumer goods second hand when possible. Before you buy something, ask yourself if you truly need the item or if it will bring you more joy than meeting your financial goals.
Step 6

Analyze your set expenses, such as utility bills and debt payments. Consider how each of these categories can be lowered. Turning off lights, taking shorter showers and lowering the heat thermostat are all common sense ways to save energy costs. Even gas and oil costs for your car can be lowered by combining trips, driving less and finding cheaper forms of transportation (such as walking or riding a bike to places in close proximity).
Step 7

Get interest rates lowered on your credit cards. You can accomplish this by switching high-interest balances to cards with 0% intro rates (read the fine print and pay them off before any rate increases) or by asking your current bank to lower your rate so you can bay the balance down more quickly.
Step 8

Reduce cell phone, cable and movie rental plans to save money. You may be surprised on what you really use, compared to what you're paying for each month.
Step 9

Establish an emergency savings account for unforeseen expenses, such as income loss, car trouble, and the like. Make a commitment to use these funds only for true emergencies. Start with a goal of $1,000 for your initial emergency fund. Eventually, having three months' expenses set aside is advised.
Step 10

Transfer money to your savings account each month, or every pay period, based on your budget. At the end of the month, add to savings the money you had budgeted for discretionary items but didn't spend.