The Easiest Way To Save Money?

[jeffrey]

Had a conversation with a friend today and he wants to get better at saving money. So his question to me was. "What is the easiest way to save money?" We talked a bit and what he really wanted to know was: What are the easiest steps to take that will immediately save the most money for the littlest amount of effort? I gave him a few suggestions but figured there are probably a lot more out there so I decided to get your opinions. If someone asked you the above question, what suggestions would you give?

[Broken Arrow]

You have probably already mentioned this, but my employer allows us to direct deposit our paychecks into several accounts. The easiest way to me is to set it up so a percentage always goes to a savings account that doesn't get touched.

Out of sight and out of mind, and I don't think it gets any easier than that.

Also, when I started to save, I started with a $20 bill, and just shoved it into an envelope, and locked it in my safe. Then I made a vow to keep adding $20 to it on a regular basis. Again, pretty easy, but it can get pretty tempting to touch that money.

[cschin4]

Easiest way to save money - Don't shop.

By this I mean, do not recreational shop, do not go into a store and browse, do not go to any store unless you have a list of what you need and only buy that. And, when you get a "needs list" only shop for those things once a month. I am not referring to groceries but the other stuff of life.
The more you shop, the more time you spend in any store, browsing shopping sites, etc the more you will spend. So, I rarely shop anymore unless I absolutely need something. It really keeps me from buying alot of stuff I don't really need.

[Broken Arrow]

Hmm... that brings up an interesting concept on the definition of "easy" I think.

I think there are plenty of things that would be easy write out, but are rather difficult to do in practice.

Even if things that aren't physically difficult to do, it can be a daily psychological battle. For example, I really shouldn't be eating doughnuts, but.... mmmmm doughnuts.

So, something that's both easy in concept as well as in implementation on a physical, financial, and psychological level.... This can be an interesting challenge I think.

However, I do think the direct deposit to a self-contained savings account would still satisfy all of these conditions.

[Ima saver]

I have to agree with, "don't shop". I have not been to a mall in over 7 years. (the nearest one is a two hour drive, one way) I hit Wal Mart about once a year. I buy no christmas presents for anyone except my husband. I give the grandchildren money instead. I have cut way back on Christmas.
I make a list of what I need, (example, deodrant) and only shop when I need something.
Out of every paycheck, I put away 10%, at least, into our money market savings account.

[Joel]

1. Make saving automatic. Either use direct deposit, set up an auto transfer at your bank... or both.

2. Don't spend more than you can afford and eliminate existing debts.

3. Don't touch your savings.

[boefixepa]

I agree completely with STAY OUT OF THE STORES! If you go in, you're probably going to spend money.

Also I believe the desire to save money has to be a mind set.

The biggest mind set adjustment I have ever seen in myself was when I decided not to spend a penny for a month. My only allowed expenditures where gas to get to and from work and the bills that pretty much pay themselves, (house note, utilities, etc.). At first it was REALLY hard. I had developed the habit of stopping by the store nearly everyday and getting...something. I thought of all these things I 'needed', but I held in there. After a few weeks, the desire to just go into the store and get...something...was gone.

I am so grateful I reprogrammed my brain. I no longer 'want' to spend for the sake of spending. So people really need this, or a similar mental shift, to accomplish savings. If you expect to save bundles, but want to spend like you always have been you will NOT succeed. Something needs to change.

[cschin4]

It is a Mindset. That is the SECRET! If one does not change how they think about and view their money, then all the debt diets in the world won't make a bit of difference over the long term. Frugality is a lifestyle.
Now, does that mean making things out ot dryer lint? Absolutely not. If you came to visit me, you would find that I own a very nice home and drive 2 cars which were purchased new. I have alot of "stuff" as well. However, I have no debt, have paid off my home and have a fully funded retirement plan, life insurance, disability, etc. So, frugal people do not necessarily appear frugal. No need to look or act like a bag lady.
So, what is the change? When I became truly conscious of where I was spending my money. I realized I easily frittered away money and was buying things that did not enhance my life or make me happier. So, now I purchase things I like and enjoy after careful thought. And, for enjoyment, I totally avoid shopping. I now find that I really enjoy "free" things so much more. For fun, instead of spending the day at a mall (boring), I explore my local community. I go on day hikes, swim, go to the Y, library, etc. I have recently found the community theater and really enjoy attending that. I also like gardening, puttering around the house, and playing a musical instrument. So, because I no longer shop for recreation, my life is so much fuller and more fun.
And, I am still amazed that new store after new store is opening all the time and wonder why people want to spend so much time shopping.

[Gruntina]

Create a new hobby that does not cost much but you can enjoy devoting your time to. Can be simple as walking or volunteer work and etc to make your self busy. I notice when I am bored, I want to do something or go visit friends which leads to spending money like out to dinner or shopping.

Observe money leaks and see if there is anything that just not really necessary and not used much can be eliminated such as fancy cables/cars etc.


Do your own home improvements or try learning partial of it, learn how to fix your own car engine trouble... if you have the time. I learn that the "easy" way of hiring someone else to do those things cost more but in the meantime while they are working on the project you hired them for, what are you doing on your spare time so you’re not spending more money on top of the payments you will owe the workers? With the internet age, I am sure you can find a lot of research details online.

[Broken Arrow]

Originally Posted by cschin4

It is a Mindset. That is the SECRET!

Bingo! I couldn't possibly agree with this more. If I did, I think I'd rupture an internal organ.

It's not hard to learn how to save. I mean... just look at me.

The only problem with mindset is... I don't think that's easy to achieve. I think it's arguably the single most important factor, and is a prerequisite to effective saving and investing (or anything important and worthwhile for that matter), but... it's not easy in the least.

But perhaps that's a different topic for a different time?

[cschin4]

Funny thing. Now that my mindset has truly changed, spending and buying is often not fun or enjoyable. And, I just get kind of anxious especially if I think I am spending too much. So, shopping is really no longer pleasurable at all to me.

[Cassandra]

Besides not going to physical stores, stop shopping around online. Limit your time online, delete your favorite lists/shopping sites, etc.

Cassandra

[JanH]

Limit eating out. We've saved a lot by eating simple meals at home. When we do go out, we try to share a meal and pick places where we enjoy eating but are not that expensive. Also, by not shopping much like the others say, we have cut down on gas costs!

[PrincessPerky]

Cancel something....takes only a few minutes (like cable) but returns are enormous for the year.

Fill that time you were spending on the something (gym) with a hobby you really want (hiking)...or a cheaper version...(go visit relatives for the big game)

[neatdesign]

Going along with the mindset thing...

Every penny you save should have a purpose. It can be for anything you want -- a nice vacation, a new TV, an education, a house, retirement, whatever -- but give it a purpose. By doing this you are basically setting a goal for yourself to work towards. And as you see your vacation savings fund or retirement savings fund growing month after month, you will be motivated to save more to see it grow faster. Then you get to reap the rewards and not feel that you've wasted your savings on something frivolous because you didn't plan and give it a purpose.

Saving just for the sake of saving is not a good mindset, in my opinion. That's like going to school year after year with no plans to graduate or get a job. Sure, you build up a lot of knowledge, but if you don't have a goal to use that knowlege for anything, then what good does it do you?

Same goes with saving money. Give it a purpose, and you will see it work for you. Don't give it a purpose, and you'll probably squander it on something stupid and unnecessary. I speak from experience here.

~ Jenney

ps. My thanks to Jesse and his YNAB budget program for enlightening me to the mindset I just described. I cannot take credit for it, but I agree with it wholeheartedly.