The Best Way to Save Money When You Can’t Afford to Save Money
Or ever feel like your wallet has a hole in it? Regardless of how well you do in life, you still find yourself broke long before the month is over. The good news? You don’t require a six-figure income to make progress financially. What you need are smart strategies that work — quickly. Here are seven science-based tips for saving money, from experts and from people who have succeeded in saving thousands. If you’re looking to take charge of your finances, read on.
The 24-Hour Rule: Fool Your Brain Into Buying Less
Impulse buys tend to ruin a budget. Whenever you feel the impulse to purchase something, try the 24-hour rule — eliminate upon 24hr pause prior to your purchase. Studies in the field of behavioral economics indicate that delaying gratification leads to more rational decisions. Most find that the urge to purchase falls away within 24 hours, cutting their spending by hundreds of dollars per month.
💡 Real-World Application: A study published by Duke University revealed the average person who waited to make a purchase is 60% more likely to stay in budget.
Bye-Bye Overspending: The Cash-Only Diet
Need an immediate way to reduce spending? Give up your credit cards and pay with cash instead. Research indicates that transacting with physical cash causes you to feel the “pain of paying,” which deters overindulgence. Making a real transaction — literally passing money from hand to hand — peels off the layers between you and each purchase.
💰 Pro Tip: “Paying with cash highlights different synapses in your two hemispheres and makes you more aware of spending,” says financial psychologist Dr. Brad Klontz.
Unsubscribe & Save: Cancel Sneaky Recurring Expenses
Subscription services are quiet killers of your budget. From streaming services to abandoned gym memberships, all those little monthly fees can mount up. Scan through your bank statements, and cancel any service you haven’t used in 30 days.
💡 Pro Tip: Sign up for apps like Truebill or Rocket Money that will automatically identify and cancel unnecessary subscriptions.
Homemade Meal Prep Like a Pro: Save $200+ each month on food
Eating out is expensive. Eating out is 5x more expensive than cooking at home. Not only does meal prepping save you cash, but it also time. Studies indicate that average meal planning leads to $2,400 of savings per year.
💡 Daftowe: Plan the menu on Sundays, buy in bulk, and prepare big meals. This will spare you from late-night runs to Taco Bell.
Try the $5 Savings Challenge: A Trick for Building Wealth
Whenever you receive a $5 bill, stow it in an envelope and forget about it. It sounds simple, but this challenge has enabled people to save thousands without even noticing.
💡 Success Story: This teacher from Ohio saved over $3,000 in just one year applying this hack!
The First Tip is to Automate Your Savings
Arrange for an automatic transfer to your savings account each payday. Your money will sit there and grow and build up over time, even if its only $10 a week, with that saving habit your building a financial umbrella for yourself.
💡 PRO TIP: This is known as the “Latte Factor” according to finance expert David Bach. Small savings today equal big results as time goes on.
Sell What You Don’t Use: Convert Clutter to Cash
(Panicked that you forgot to put this on your list? Unused clothing, old electronics and furniture can be sold online for quick cash.
💡 Where to Sell? Sell your clutter “fast” with platforms such as Facebook Marketplace, Poshmark, eBay or OfferUp.
Key Takeaways: Just Get Started and Make Your Money Work
You don’t have to suffer to save money. You can start overriding that hidden control you have given to these bigger forces by simply making small, strategic changes starting today. So which of these hacks are you going to try out? Comment below and let’s do this money-saving revolution thing!
🔥 PRO CHALLENGE: Choose one hack and implement it for a week. Monitor your savings and see how much you’ve made out of it after seven days!
