How to make money by saving money

Posted on: Jun-25-2008 09:07:26 PM by Stevan Ljuljdurovic

There are lots of ways to make money, but people never realize that one of the best ways is to save the money you already have. Your not going to increase the amount of money in your bank account, but you are going to dramatically decrease the speed you lose money. So here is my guide to saving money with a few good money saving tips.

  1. Keep track of money you spend. It will really motivate you to save money if you actually know how much money your spending from day to day. A great way to do this is to frequently look at your bank statements and compare your income to you savings.
  2. You need to know how to save money on gas, especially with gas prices as high as they are. A very simple ways to cut back on your mileage is to plan out your day better. Plan to make all your stops on one trip and plan a route, this way you won't forget to things and have to go back. Another easy way to cut back on gas is to change your driving habits, does it really make you cool if you can accelerate faster then the person next to you, or would you rather have some extra money in your pocket.
  3. Get a high yield savings account. It is easy to save your money if you can't spend it, so put it into a savings account with high interest rates and make sure your not getting charged fee's. If you a local place that offers this like I do, I recommend going there and asking some questions, but if you don't you can get a online savings account with high interest. The reason internet savings accounts are good is because they don't have the overhead of bank locations. They can afford to offer you better deals then a local bank and a lot of the time they give you more banking options
  4. Make yourself an employee. If you start paying yourself $10 a day, and putting it into that high interest savings account. You would be very surprised how quickly that can add up, lets just do some simple math. $10 X (days)7 X (weeks)4 = $280. Thats a pretty huge saving, considering that you probably spend over $10 a day on things you don't need and wouldn't miss if they were gone, and this brings me to my next point.
  5. Cut it out! Take a serious look at how much your spending daily and try to reduce it. You don't have to say you're going to just stop everything you were doing before because that would probably be to hard for most people. If you are one of those people who buys on impulse then you really need to try to commit to saving as much money as you can for a period of time.
  6. Make a rough budget. This will help you cut down on your daily spending. Try your best not to go over, but if you do, take it out from the budget for the next day/week/month (however you chose to set it up). 
  7. Get rid of your credit cards. A great way to pay yourself is to never use your credit card. Think about the interest you pay on that thing. Instead of giving it to credit card companies, put it towards your self payments!
  8. Set goals. I know this can be tough, but try your best to set goals on the amount of money you want to save. When you first start it may be hard to know how much you should expect to save so if you don't reach your goals at first, revise your plan and try again.
  9. What you don't know won't hurt you. Instead of going to the mall and seeing something that you just have to have, go to the park or invite a friend over. Sometimes there are deals that are just to good or something is to nice to pass up and if you don't buy it you will regret it. This has happened to me a few times, but when I don't put myself in the position to buy things, I never regret it.
  10. Avoid expensive places. Do you really need to go out to dinner on top of a skyscraper every money? Okay, obviously I am exaggerating this one a bit, but you get the point.
  11. Buy in bulk and save yourself money. When you see things you normally buy that are on sale, buy more then you regularly would. This way you save money on buying the same thing later at a higher cost.

Remember that the key to make money doesn't depending on you getting more.

 

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