Saving money doesn’t come naturally to some people.
I am one of those people.
But there are 7 habits that will help you save money — even if you’re a spender.
You’ll have less stress and a huge weight will be lifted.
Here’s a look at how to get started with the 7 habits that will help you save money.
1 – AUTOMATE SAVINGS
Hands down, the best financial habit I know of to save money is to automate savings. Set up direct deposit into a savings account through your employer, if possible. And if not, set up an automatic transfer for a certain amount of money every pay period. If you never see it, you can’t spend it. You’ll still be broke at the end of your pay period, but this way, you’ll be broke with a savings account. This is really helpful for spenders (like me!). If you don’t have access to it, you can’t spend it (you’ll save it automatically). It requires the least amount of work. Set it and forget it.
2 – GET ON A WRITTEN BUDGET
Getting on a written budget will help you save money because you’ll be aware of exactly how much money is coming in vs how much money is going out. Setting up a budget will help you allocate your money intentionally to each expense category, which will make you feel confident in spending the money on whatever it is you’re spending it on. This way, you know where your money is going and can plan to save money.
For example, before I was on a written, thought out budget, I never felt like I had enough money to save, or to spend on entertainment. I felt guilty spending any money at all. After I started budgeting, I realized with my own spending plan, I was in control of my money and had the money to spend a little and save a little. It’s really empowering, no matter how little money you’re budgeting with.
A budget helps you feel in control.
3 – USE CASH (AND NOT CREDIT)
One of the best ways I know how to save money is to not use a credit card.
If you are a spender, I think this habit is SO important. If you’re a natural saver, then using a credit card and paying it off monthly may worth really well for you (especially if you maximize it for points). But be honest with yourself. If you’re a natural spender, I highly recommend not giving yourself the temptation and just avoiding using plastic.
With cash, you can’t overspend.
4 – ALWAYS PAY FULL PRICE (NO PAYMENT PLANS)
An enormously valuable habit that I’ve learned is to always pay cash and to never finance. The only exceptions, in my mind, are purchasing a home, paying for education, or some other big thing that just cannot be bought with cash (some might argue a car). But for everything else, do not go on a payment plan. Things will happen in the future that you cannot predict, and by getting on a payment plan you’re taking a risk that nothing about your finances will change. If you can’t afford to pay cash, I say save up the money until you can afford it. It’s just a good habit to practice.
5 – SHOP GENERIC BRANDS
Whenever you have the option to buy generic, I highly recommend it. Think about all the times you’re in the grocery store or pharmacy and the generic brand is a few dollars cheaper and has the exact same active ingredients in it – there’s no reason to spend more on the name brand! If there is a legitimate reason to buy the name brand, then go for it. But usually, like with grocery store and pharmacy products, there isn’t.
Sticking with buying generic brands as a habit will help you free up cash every month and enable you to spend that extra money on more important things – like putting it in your savings account!
6 – PACK LUNCH
Getting in the habit of eating lunch that you make can save you a lot of money. Whether you work in an office or work from home, prepare your lunches ahead of time so there’s no temptation to buy lunch. Buying lunch adds up and if you’re looking for ways to save, then this is a really big one. I pack my lunch every day and bring it to work. If you’re asked to go to lunch a lot and feel bad saying no, get more comfortable with it and explain why. I always say, I’d love to but I’m on a budget! And of course, there will be exceptions and special occasions, but let those be few and far between.
7 – FEEL COMFORTABLE SAYING NO
One of the best habits you can do for yourself is to learn how to say no with confidence and without feeling bad about it. This doesn’t always come natural, so if you’re not there yet, keep practicing. Practice makes it easier. Be open and honest with people. Let them know that you’d love to, but it’s not in the budget right now. If you feel really bad about it, still say no, but deal with your feelings separately. If you decide no is the right answer for you to make, then that’s what you should make, and learn to deal with your feelings about it separately. I promise this does get easier with practice!
A FINAL NOTE!
You can find ways to save money, even if your budget is tight and you’re a spender.
The key is actually doing the things listed above.
Here’s how the spender in me is finding ways to save money regularly:
- Automate savings
- Get on a written budget
- Use cash (and not credit)
- Always pay full price (no payment plans)
- Shop generic brands
- Pack lunch
- Feel comfortable saying no
If I can save money, I believe that anyone can!
