How Can You Save Fast? 11 Incredible Tips

Did you know that 25% of Americans do not have any savings? Undoubtedly, it is hard enough to afford basic needs; saving can’t be easy. Many people do not know where to start when it comes to saving. You can begin saving any time you make that decision. Here is how you start your money-saving journey;

1. Pay Off Your Debt

Many of us start our independent lives in debt. It could be student loans, mortgages, or even credit card loans. The truth is, you can never save if you have debts.

You think, “I have a $10,000 debt, and I only have $50 left after paying my bills and buying what I need. I should probably pay off my debt or save. But it is too little to pay off my debt. How long will it take till I clear it? I can’t save it either since it doesn’t seem right. What if something comes up?”

You end up keeping the money and using it on stuff you didn’t even need.

Paying off your debt is the first step to your financial freedom. Use every extra coin you get to pay off your debt as soon as possible, consistently. Also, pay off your credit cards as soon as you can.

Avoid using credit cards as much, and use cash or debit cards. Then you can begin to save towards your future and valuable assets you would like to have.

2. Save First, Then Spend

Saving is a habit that you have to cultivate for yourself, with your future in mind. Therefore, before spending any money on the present, think about your future. Set aside the amount you purpose to save, and then budget for the rest of the capital.

If you start spending before you set your savings aside, you will end up with no savings. You can only use what is available to you, no matter what.

Therefore, you sill still pay your bills and eat even after you save, just like you would have without saving because we are conditioned to use what we can access.

3. Differentiate Needs from Wants

There is a vast difference between needs and wants. Needs are things you cannot live without, like housing, food, and medicine, depending on your situation. Wants are things you would like to have, but you can comfortably live without them.

Take something as simple as a pillow. It is a need if it helps with back pain. Being without it would be painful and cause harm to your back.

On the other hand, a pillow is a want if you want to buy it to add to the ten others on the bed just so it looks nice. In this case, it can wait, but it is not urgent. Determining needs and wants helps minimize your spending on unnecessary things, putting the money into your savings.

4. Have a Budget before Spending

Spending without a plan is financial suicide. A budget is crucial because it gives you the power to determine your spending. You cannot afford to lose control over your finances; you worked hard to earn money, do not lose your power over what you would want it to do for you.

A budget will allow you to spend on what you truly intend to. Follow these steps while budgeting to save money;

1) Have a list of needs and wants.

2) Have a figure set aside after setting savings aside.

3) Write an estimated price of everything in your list, and total the amount.

4) Ensure the total amount fits In the amount of money set aside for spending.

5) If it goes beyond your budget, re-evaluate which of your wants you can forego and get them off your list.

6) Then go shopping.

7) Any extra money left goes into your SAVINGS.

5. Buy Assets from Your Savings

Save for the things you want. Let’s talk about that thousand-dollar couch. Save up for it as opposed to using all your income, leaving other things unattended. It is best to save over time for the pricier items that cannot fit into your monthly budget.

It is less strenuous on you, preventing you from going into debt. The goal is to achieve everything you need and want without compromising your future. It will take some time. Be patient, and you will live a full, stress and debt-free life.

6. Prioritize Your Bills

Remember that even as you save for a better future, you still live in the present. Do everything you can to have a comfortable and easy life. Ensure that your bills are paid first, even before buying other things.

Some important bills are house rent, insurance, and utility bills, and they should come first.

After setting aside savings, ensure that the next thing you do is pay all your necessary bills and then the less necessary ones like Netflix. Pay your bills in terms of needs and wants, and ensure that you live within your means because struggling to pay bills is stressful enough.

Imagine working to pay bills you are sure you will never settle with your income or paying high bills to please people. Move to a house you can comfortably afford, get an affordable car. Make your life less stressful.

7. Have a 30-Day Rule

The 30-day rule applies mainly to your wants. Sometimes we buy things out of impulse and not a necessity. We can all attest to having a costly pair of shoes or a dress that lies in the closet and isn’t as appealing anymore. Yet, it seemed very urgent and necessary at the moment of purchase.

Our impulses can cloud our judgment, making us make the wrong choices. The 30-day rule states that if you like something and want to buy it, leave it at the store. Go home, and wait 30 days.

In 30 days, if you still want the item and think that it is essential, buy it. If not, then move on. It wasn’t necessary after all.

This rule will help save money you would have spent on unnecessary things.

8. Use the 50–20–20–10 Method

Remember we said that we had earned power over our money? Yes, the long work hours allow you to decide what to do with your money; plan for your money before you even spend a dime.

The 50–20–20–10 has seemed to work for many. The figures represent percentages of your income. 50% goes to your expenses, 20% goes to your savings, 20% goes to your investments, and 10% goes to your offerings; what you give in the church if you are a Christian or to a needy friend.

Having this all planned out before spending ensures that you only have 50% of your income at your disposal for use. You, therefore, have to budget everything around that 50% to secure your future. Everything here includes housing, schools for your kids, the type of car you get, and how much it requires for fuel and food.

You will always stay within budget and commit to saving and investing. Having this kind of discipline will fuel you very far financially.

9. Invest

Now the question remains, how much do I save, and when do I invest? Savings are not forever; instead, they are supposed to equal the amount spent on the expenses you incur for six months.

The reason for saving is to cushion you if you cannot generate income for yourself and your family. Your savings should cater to all your expenses for six months, without any other source of income.

Therefore, once you have paid off all debts, saved up an amount enough to serve you sufficiently for six months, then you begin to invest.

Start putting your money into avenues that can generate more income to create wealth. These several routes include business, real estate, bonds, bills, money market funds, and cryptocurrency.

Investing does not mean that your saving culture dies; instead, you still have to save for things you want, even for more significant investment projects.

Bonus

If you can access it, it is not your savings. If you can access your savings quickly, it is no better than money on your countertop. Put away your savings in an account in which you can access in case of an emergency, yet not too easy to access even the slightest impulses arise.

Keep it out of sight and your mind until a real need arises.

Bottom-line…

Saving seems hard at first, but it is worth the sacrifice once you realize how beneficial it is for your future.

Make a list of your wants and needs today and start your money-saving journey.