The best advice on saving money is whatever you'll actually learn and follow.
I’ll bet you thought from the post title that you would get the best advice on saving money, right here, now, today. And it would change your life forever. Well, maybe this post will indeed change your life, who knows?
The truth is, the best advice on saving money is whatever works for you. Advice isn’t worth a dime if you don’t put it into practice. For example, you could seek out an expert like Suze Orman, tell her about your summer vacation plans and she might roar, “You can’t afford it!” But if you don’t like that advice, you’ll justify that vacation somehow and zip off to Hawaii or wherever, right? You bet. So, the most effective advice is only what you’ll actually follow.
The best advice on saving money is not the same for everyone. We’ve been told so many inconsistent things anyway. It’s not easy to sort through the contradictory advice on saving money. But, with all that said, there are some basic tenets of saving money that can apply to almost all financial situations:
1. Avoid Debt — Some people borrow, borrow, borrow until they reach the point where being in debt is simply a way of life. Don’t make that mistake. Do whatever you can to pay off debt — whether it’s an apartment or a house, a car, credit card bills, student loans, you name it. You’ll never be financially free if you owe money. Choices, and sometimes difficult ones, must be made to get yourself out of debt. If you can’t control your unconstrained spending habits, try to get some budget counseling. Otherwise, perpetual debt may be your future.
2. Stop Spending — If you spend whatever money you make (or more), there will be nothing left to fulfill your dreams. The soundest advice on saving money I can think of is “stop spending, dammit”. It’s not rocket science.
- Suggestions? How about this: keep the last week of every month as a zero-spending week. Pay bills and shop for what you need during the first few weeks of every calendar month. During the last week, figure out what you spent in the three preceding weeks and put what’s still unexpended into a savings account or toward a debt. That’s it, you’re done, no more spending. If you want to be social, invite friends over for a BYOB game night or potluck dinner. Talk about your finances and share advice on saving money! Otherwise, just hold off until the next month begins. Eat whatever is in your cupboards or freezer for the next seven days without any cheating. The upside is you will discover how to become more creative with lower consumption and less waste.
- Also, try going on a clothing fast. The trouble with a closet (or several) overflowing with clothes is that you never find anything to wear. Stop purchasing new clothes and pare down your closet to solely those favorite items that you wear day in and day out. You’ll be amazed how seeing only clothes that you love and wear often in your closet lowers the desire to buy something brand-new. Only replace something as it gets worn out and always pitch it out before you buy its replacement.
3. Be Frugal — Want some great advice on saving money? Start thinking like a cheapo. Remember when you were a college student? You had to be thrifty back then. It was as necessary as breathing. Live like a student again. Buy cheap beer, eat peanut butter sandwiches, hang out at home, listen to your iPod or iTunes (or even a radio station) and have interesting conversations with friends. When was the last time you did any of that stuff? Try it again. Snub the fancy restaurant dinners, lunches out, and morning lattes. Make as many meals yourself as possible, on the cheap, and stay at home to enjoy them.
4. Disregard Windfalls — Ignore newfound money. If you get a pay raise, a refund, or some other unplanned money, disregard it. Don’t go out to dinner with it. Set that money aside to pay off a credit card bill, save it, or put it toward a future big-ticket purchase.
5. Commit Yourself – Commit, commit, and re-commit. Respect your plan, follow your own advice on saving money, and before you know it, you’ll be able to enjoy life debt-free and financially secure.
Lastly, here’s some valuable advice on saving money for spendthrifts. Consider the 60% solution. If working out a budget is just too much for you, simply live on 60% of your income. When that’s depleted, so’s your spending. Just be mindful that this plan doesn’t account for unscheduled or accidental costs — like emergencies or high-dollar annual expenses such as insurance premiums or tax bills. Then again, if you’re squirreling 40% of your income away, odds are you’ll be ready for those unpleasant financial surprises — and you won’t even need advice on saving money.
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