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How Can I Save Money Effectively?

jack145

Hi everyone,
I'm looking for practical tips and strategies to save money. I’ve been trying to cut expenses but still find it hard to save consistently. What methods or habits have worked for you? Any budgeting [removed - no soliciting] routines you’d recommend?
Thanks in advance!

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Comments

SRC54

Welcome to the Community! If you are young and starting out, it is hard. Using Simplifi can help you find things you can cut. I suggest cutting out things you can do without and try to have money left over and move it to Savings asap.

Another way if things are really tight would be to transfer a small amount to Savings after each paycheck and just will yourself not to spend it. Even if it's just $50 or $100.

A simpler way to save (not necessarily easy) is to stop using credit cards especially if you are paying interest. Try not to borrow money because interest can really add up. Use credit cards for emergencies.

Ultimately, you have to find something that works for you. It gets easier as you go. Good luck and enjoy using Simplifi.

TheReal702

Stop using Door Dash and every other fast food delivery service. Stay out of Starbucks too. 😉

Open an account with Fidelity Investments, then set your checking account to make an "auto-pay" into the Fidelity Money Market Account (SPAXX) every week/month for however much you are comfortable with.

Even if you only start out with $20/week that will get you over $1k/year.

DannyB

@jack145

To save money consistently you will need two things. First, you will need more inflow than outflow. Second you will need to be SMART.

@SRC54 and @TheReal702 reinforce what you are already trying to do, cutting expenses and making routine contributions to some kind of savings account. This assumes your income is more than adequate to meet all your basic needs with surpluse you can save instead of spending it willy-nilly on "extravagant" purchases. But that's only half of the story, so to speak. At some point all the "excess" expenses will be cut out, and without an increase in inflow, cutting expenses simply won't get you to where you want to go - consistent, real world, growing, savings.

To accomplish what you say you want, you will need to also increase your inflow. You will need to make more to save more. Another idiom to keep in mind is that it takes money to make money.

This is where the second thing comes into affect: be SMART.

Specific: Clearly define what you want to achieve. What exactly are you saving for. This may and probably will be more than one thing. But whatever it is give it a name. Retirement, buy a house, a specific travel experience, build an emergency fund.
Measurable: Establish criteria to track progress. How much do you need to set aside weekly, biweekly, monthly to reach a specific goal.
Achievable: Set realistic goals that can be accomplished. OK, this is where you ask, how much CAN I set aside weekly, biweekly or monthly?
Relevant: Does your goal matter to you? Does it fit in with your broader objectives? Does it fit with your values?
Time-bound: Set a deadline. When will your goal be completed?

Here is a good article about S.M.A.R.T. goals.

Increasing your ability to save will take more than cutting expenses and it may take some time and no small amount of effort to get to where you want to be. Many years ago, I was basically complaining to a friend about what you bring up here. After listening to me for awhile he asked me a simple but for me profound question, "Why don't you get a job that pays more?" My response was, "Well, huh." Then I proceeded to do just that. It took a few years and required some major education and training, but in the end we had the means to save consistently and to achieve our financial goals. Oh, and we didn't have to give up the occasional specialty coffee splurge 😉

Good luck.