Learning to Save Money
So often we are focused on making more money, budgeting our money or investing our money as a way to build our wealth. While these are all good foundational building blocks of a strong financial plan, they overlook a simple and easy way to make more cash available in your monthly plan. Putting more cash in your monthly plans means you can eliminate debt faster, payoff your mortgage earlier and build your wealth sooner. What if you were able to find $250-500 more in your monthly cash flow plan? While it may not seem like a lot of money, but it adds up. $500 per month is $6,000 per year! Do I have your attention?
Saving money on your purchases and spending is a valuable part of your financial plan that is often overlooked. Why? Because it can take a bit of work. It requires you to change your thinking and plan ahead, and who wants to do that? Yuck!
Well, an extra $6,000 a year paid on your mortgage can knock your 30 year mortgage down to 16 years and save you $88,000 or more in interest, depending your loan amount and interest rates. I’d say that’s a pretty good use of $500 a month!
Or perhaps, you’d like to invest that $500 a month. Well $500 a month invested monthly for 10 years can turn into $95,000! What’s even more amazing is what can happen after that. You see, if you leave that money alone until you’re 59 (I like 59 because I want to retire before I turn 60), it can become $600,000 to $1,600,000 depending on your age. That’s what I call a good investment!
Well that’s what can happen with your money if you save it, but how do you save it? How do you find that $500 per month?
Saving Money Tip #1
Many people today have “stuffitus”. That’s the love of stuff. They just like buying stuff. Stuff they don’t need. If you can just cut back on buying “stuff.” It’s amazing what you can save. When you’re at the store, think twice before buying that thing that you don’t really need.
Tonight for me at Publix, it was chicken wings. They smelled so good I bought them. They were hot. They were tasty. However, my wife and I had a dinner appointment at a friend’s house in an hour and a half. All I needed was 1.5 hours of self-control, but I blew it. It cost me $9.95. Blow $9.95 per day for 30 days and that’s nearly $300 a month…$3,600 per year!
Saving Money Tip #2
Eat at home more. My wife and I have been looking for ways to save money. Our budget is a bit tighter than it has been in the past. With a family of 8, it’s expensive to eat out. We developed a bad habit of eating out. We can feed our family at home for 25% of what it costs us to eat out. Now that’s real savings!
If you’re going to eat out, use a coupon. Always use a coupon. Train yourself to use a coupon. I worked with a few guys who were pros at this. They would find buy one get one free lunch coupons, then they’d split the cost of the lunch. They were able to eat out at lunch for 1/2 the price! Brilliant!
Saving Money Tip #3
Always be on the look for more money saving tips and there’s no better place than PennyHoarder.com . At PennyHoarder you’ll find the best of the best ways to save even more money.
Also, use coupons whenver you can. It’s easy, and it’s effective. It’s an easy way to save money at the grocery store, and if you’re really good, you can save 25-50% on your grocery and household needs. That adds up! Checkout Coupons.com and CouponMom.com
Got anymore money saving tips? Add them in the comments section and tell us what you’re thinking.