Do you have good money habits? Or do you have a hard when trying to save money?
If so, you’re not alone. Millions struggle with saving money.
As soon as it comes in, it’s gone the next day.
And while some of us are usually better than others planning, something always seems to come up. At least that’s how it is for me. There is always one unplanned item I did not have in my budget.
And when it’s all gone, not having any money left can cause stress, anxiety, and sleepless nights.
So here are 9 ways you can save and create good money habits.
1. Automate Savings
This is THE best way to save more money. If you don’t read and use anything else on this list, make sure you automate your money.
Saving and putting money aside does two things for you.
One it ensures you have money to provide for yourself and your family in the future. And two, it allows you to make even more money.
Whatever you save and invest over time will add up. But it won’t happen if you don’t invest.
Which is why I recommend you do the following:
- Pick a company you like
- Do some research to learn the basics
- Open up an account
- Have your employer deposit a set amount of money
- Smile, you’re now an investor!
Once done you can’t spend money you don’t have right now and things will work out.
And yes this requires a little work upfront, but once you set it… you can forget it. Move on with your life.
2. Learn About Money
Knowledge precedes action.
If you don’t know what you need to do. You can’t do the doing.
And money is a huge subject. So break it down and learn about it over time.
It wasn’t until I failed over and over again at managing my money did I start taking things seriously. I got sick and tired of being in debt. Paying creditors, and making bad
Now, I make time and learn something new every day. I do this by listening to others and how they explain different concepts.
Even if I’ve heard it before, this time I’ll hear it in a new and different way.
This reaffirms what I already know. And I memorize and apply concepts I was learning about better.
So try this out, especially if something doesn’t make sense to you.
Budgeting to me is a lot like playing defense in a sport.
You want to limit your opponent’s ability to score. But in this case, your opponent is you.
It’s you versus you.
And you have to defend yourself from your other half. The half that wants to spend. The half that doesn’t want to budget, save, or achieve financial freedom.
Budgeting can be hard. Especially if you’re not committed to sticking with it through the good and bad times in life.
But it doesn’t have to be this way.
Once you find a system that works for you. You’ll wish you discovered it sooner.
This is what happened to me when I discovered YNAB (You Need A Budget). I tried budgeting for years but I could never stay committed. Now that I have a system in place and YNAB, budgeting is easy.
I live below my means every month. And this leaves money for me to invest.
So find a budget that works for you and when you do, stick to it.
Check-in daily, and weekly to see how you’re doing. But don’t make the mistake of only looking at your budget once a month. I used to do that and it never worked out well for me.
4. Start a Side Hustle or Get a Second Job
When I started budgeting I started cutting out things I didn’t in my life.
But eventually, I realized there’s a limit to how much you can cut. You might notice the same thing when you start budgeting too.
Because after you’ve saved as much as you can with your budget, there aren’t many other ways you can save money. This is why you should start a side hustle or get a part-time job.
Figure out a way you can make extra money on top of what you’re already making each month. There are hundreds of different ways you can do this. And the way I do it isn’t going to be the same way you do it.
We’re all unique and creative at different things. So do some thinking. Find out what works best for you and get to work!
The money you earn from that second job, no matter how small adds up over time. Even if it’s a low-paying job, the
And at the end of the year money from your side hustle or a new job can add up to thousands of dollars you never had. Money that you can now save, invest or pay your debt off with.
5. Use Cash or Debit – Never Credit
This is a great way to save and challenge yourself each month.
By only spending the money you have, you’ll be living at or below your means.
And when this happens you’ll have extra money each month to save and invest.
And you won’t be giving your money away to your bank or credit card company each month.
Which also means you’re not going deeper into deeper debt.
So start paying for everything with cash or debit.
Because if you don’t pay off your credit cards in full each month you’ll be charged interest on top of what you already owe.
6. Master The Art of Saying “No”
I wrote an entire blog post about this.
And you can read about How To Save Money By Saying “No” if you’d like to learn more.
But to sum it all up – you can save and invest more if you say “no” more often to others and their requests.
Requests that don’t serve you, your budget, or your end goal.
And if you know your why, your reason for saying “no”, saying it becomes a whole lot easier. But you need to know why because without one, you’ll just be going with the flow…
- You’ll go out to dinner and buy food whenever you feel like
- Use your credit card for things you don’t need
- Delay setting aside money to grow your emergency fund
- Pay the least amount of money on your credit cards
- And save nothing or not enough for retirement
All because you never questioned how your spending today affects your future tomorrow.
You had no path forward. No destination or purpose for saving,
Because there are only three things you can do with money:
- You can save it
- Invest it
- Or you give it away (spending or donating it)
You want more money so you can do one of the above. And it’s why you need to figure out your why.
Your why will act as your compass and guide every decision you make when it comes to your money. But without it, you’ll never reach your North Star or financial destination.
So take some time, think hard. Ask yourself “what do I want to do with my money in this life?”
And once you figure that out, saying “no” becomes easier and over time will save you money.
7. Avoid Debt
Too many of us live in the moment.
We sacrifice tomorrow and our future so we can enjoy the present. And there’s nothing wrong with having a good time.
But in the long run, you become a slave to the things you buy with other people’s money. The money you don’t have.
As a result, you spend years and sometimes the rest of your life paying back your creditors and those you owe.
So what’s the alternative?
It’s simple. Save your money and wait until you can afford to buy the things you want., That way you won’t have to worry about paying back interest on top of what you’ve already spent.
Or owing someone for something you purchased three years ago. So… avoid debt. And you’ll save yourself hundreds if not thousands over the course of your life.
8. Become an Investor
There’s no limit to the amount of money you can earn and invest. Or limit on the amount of money your
Because of this, there’s no reason why you can’t become wealthy in life.
If you focus on creating wealth through
There is only so much we can save. But there is an endless amount to how much we can make. This is why you should become an investor. And you can start by creating your own opportunities in life.
Start being “self-first”. And depend on no one but yourself when it comes to securing your financial future. Why?
Because everyone else is already busy dealing with problems of their own. They don’t have time for you and yours.
Change your behavior. Go from being a consumer to a producer and investor. Invest 25-75% of your
And don’t wait until the time’s perfect either. I made this mistake by wasting years of my life waiting… telling myself “I’ll do it after I get out of debt”. But the time will never be perfect.
So take action. Action is your greatest weapon in life.
9. Question Everything
That’s right you should question everything. Especially how much of your money you’re spending on different things each month.
I question what I’m spending money on often.
And it’s something you can do right now by looking at your financial statements. Or using an app like Mint or Personal Capital.
After you’ve done some reviewing, ask yourself:
- Do I use my gym membership?
- Do I need that extra item that wasn’t on my list?
- Can “xyz” item wait until next month or next year?
- Is spending $50 a month for that subscription gonna get me where I want to go financially?
- How can I reduce what I spend monthly on _________?
These questions will help you figure out your values and if your lifestyle maps to where you want to go.
Self-reflection is a beautiful thing. It will show you different ways you can save money.
Because if you don’t find different ways to save, you’ll be in debt a lot longer. Longer than you need to be.
Finally – Remember to Take Action!
You can always find a way to save more money. Even if you’re not big on budgeting.
But this requires action.
You gotta start! And then commit and stay up to date on how much you are saving. If you read this and do nothing, then nothing will happen.
Yes, you’ll have learned something new. But knowledge without action will never save or make you more money.
So do the following:
- Automate Savings
- Learn About Money
- Start a Side Hustle or Get a Second Job
- Use Cash or Debit – Never Credit
- Master The Art of Saying “No”
- Avoid Debt
- Become an Investor
- Question Everything
Everything listed works and is working for me. And if used and acted upon, I’m sure they’ll work for you as well.