Cutting expenses is the way to spend less so you have money to save. But unless you are actually putting that money into a safe place to be held for some future use, you’re not really saving at all. You’re just spending less.
Even if you cannot save a great deal of money right now, that’s okay. It’s not the amount you save that matters as much as the fact that you make saving money a regular habit.
Grab all the discounts
Many mortgage lenders and student loan companies offer incentives for their customers who set up automatic payments for their monthly payments. It’s worth knowing you’ll never be late, and if you can get even 1/4-point reduction in the interest rate, over time that will really add up to be something significant. Automobile insurers give discounts to good drivers, non-smokers, good students, cars with particular safety-equipment and any number of other situations. But you have to ask. Make the call. Then save the difference.
Get fanatic about coupons, coupon codes and getting cash back when it’s available. But don’t stop there. Once you have that discount, be disciplined enough to actually save that $.50 or $5.00 or whatever it is. Stash that cash. Rakuten, formerly Ebates, is the best way I know to keep all those small cash-back amounts in a safe place. If you don’t have an account and are not adding even the smallest amounts to it every time you shop, you’re really missing out. Open a Rakuten (Ebates) account here, then remember to use it.
Set dollar limits
Okay, so this sounds curiously like “budgeting.” It is. Deciding ahead of time the amount you are willing to spend for anything is to impose important limitations on yourself. Maybe it’s time to let your inner parent out—that part of you that knows how to demand discipline and good behavior.