Saving money is easier than earning it since you don’t have to sacrifice as much time. So saving money compared to making cash will be your quickest way to wealth.
Keep in mind that you are trading your time for every dollar you earn. We all have a limited amount of time, and we never know how much we have left. You should treat the time you have as a precious commodity. Careers take up personal time and make sure it’s worth it. Keep that thought in your mind when negotiating with your boss for a higher salary or job opportunity all the way to spending your money.
There are two main ways to earn money: trading time for income or earning passive income. Trading time for payment is a more linear way to make money- you work for a set amount of time and then receive a set amount of money in return. On the other hand, passive income is earned through investments or other means and doesn’t require as much active work.
Life hours = 8760 hours a year
If you live to be 50 years old, you only have 438,000 hours – 60 yr. old 525,600 hrs – 70 years old 613,200 hours – 80 yr. old 700,800 hrs, and so forth.
The point I am bringing up here is that saving a dollar is easier and much more desirable than trading your life hours (time) for $1. Taxes and other fees applied to that $1 make you give up more of your life hours (time) to get to that $1.
Hopefully, you are starting to understand how valuable an hour of your life is worth.
You keep your valuable time by saving the dollar, and then you can put that dollar to work for you, earning dollars for you! It all boils down to time. Unfortunately, time is limited, making it a rare resource.
Number One tip and trick on Saving Your Money:
Before you buy something, think about it. Do you need it? Think about the number of hours you traded for the money you’re going to use to purchase whatever it may be—a candy bar, pop/soda, outfit, vehicle, and so on.
Keep in mind some of these even have hidden expenses—all the way down to that candy bar. The candy bar costs money. Most likely, it is not good for your health, and if you want to stay in shape, you have to use more life hours (time) to exercise those calories off.
Is it worth it for the short-term satisfaction?
Now I am not saying never enjoy life along the way, but I constantly see people enjoying the now way too much, and some do it every day. They then wonder why they have no money to spend on things they truly need or any money to save.
These little money gremlins, as I like to call them. Will steal your dreams of being financially independent.
3 best Save Money Tips
Number 1: Stop dining out so much or at least cutback. Dining out is not only expensive food-wise, but when you include drinks, it gets very costly.
Ways to cut down on dining out expenses:
- Search for restaurants with specials: many restaurants offer daily specials that will help cut down the dining out tab.
- Eat during off-peak hours: Happy Hour Specials generally run between 4 PM to 6 PM or get there early enough for the lunch menu from 11 AM to 3 PM
- Please take advantage of apps and online coupons: several restaurants offer discounts when you order through their app or print out a coupon.
- Split an entree: If you’re ordering an entree and are not particularly hungry, ask your dining companion if they want to split it with you.
Number 2: Make sure to cancel any unused subscriptions. Companies love those automatic payments as most people are too lazy to cancel them. For instance, Netflix during the summer months, do you really need it? How about your cell phone? Do you really use unlimited data, or could you get by on a less expensive plan lowering your data and using Wi-fi?
Number 3: Do you have a reasonable vehicle? Or did you go with a gas hog big SUV or truck? Why do you need a truck? Is it worth the extra costs in gas, oil changes, repair bills, insurance, and the higher taxes? An oversized vehicle runs additional costs not only when you buy that vehicle but the weekly cost of gas. Big vehicles burn through your cash more quickly than fuel-efficient vehicles unless you have an excellent reason. You might think, well, I need a big car for trips. But, how many trips do you actually take? Could you rent a vehicle for those trips? Vehicles are big money drains. Save money by driving a reasonable vehicle. Remember the bigger the vehicle usually the bigger the loan.
The best hint to save money fast is to think before buying. First, think about the costs associated with your purchase. Then can you get by without it or a less expensive version?
Just keep in mind that for every dollar you spend you are spending your life hours (time) for that item. People who have money learn how to save money so they can get their time back.
Ask Yourself these questions before buying:
Will it get you towards your financial goals quicker?
Do you really need it?
Do you deserve that treat? If you do, why? Be honest with yourself
Can you wait a day or two and think about the purchase? If not, why do you have to rush?
Avoid those impulse buys. Avoid wasting money on meals at restaurants and start saving that money. Instead, go grocery shopping. Is access to events like concerts worth it? Expensive vacation or pay down debt? Which will make you feel better in the long run?
If you ask yourself these questions, you will be down the financial freedom road sooner than you think. However, if you don’t, you will most likely end up wasting your hard-earned dollars on junk that will clutter your home.
Credit Cards Steps to Finacial Freedom
Credit cards can help some people to save money and build wealth quicker for others it can be like a sand trap.
The average American household has more than $6,000 in credit card debt. Per Consumer Financial Protection Bureau “Americans pay $120 billion in credit card interest and fees each year”
That is a huge amount of money down the drain. It is a bad sign that a bunch of people are underwater when it comes to finances. People paying this type of interest sometimes as high as 25% are only making others rich by doing this. Most of the debt probably is not for necessities but more likely junk sitting around the home gathering dust.
But it doesn’t have to be that way. You can pay off your credit card debt and become debt-free. Here are some suggestions:
- Stop charging your credit cards. If you don’t stop charging your cards, you’ll never pay them off.
- Make a budget and stick to it. Figure out how much money you can afford to put towards your credit card debt each month, and then do it.
- Sell some of your stuff. Get rid of anything you don’t need or use and put the money towards your debt.
- Cut back on expenses. There are probably a lot of things you can live without, like cable TV or eating out at restaurants.
- Gather all the cards and eliminate it down to the one that has the lowest interest rate to use in EMERGENCIES ONLY.
- Reasearch the interest rate you are paying on each card.
- Write down the balance on each card and the minimum payment amount. Tools that you can use to get this under control are Excel or Google sheets site. This will make it easier to track and easier to update in the future. Management of these numbers on a regular basis should help to keep things moving in the right direction.
- After selling your stuff/junk laying around the house see if you can’t eliminate one of these cards by paying it off in full.
- Try to pick the card with the highest interest first. Then, if you have a card, you can eliminate it altogether and then use what you were paying on it each month to eliminate a higher interest rate card.
- Call your credit cards to see if can reduce your finance charges. If not search the market to see if you can find a credit card that you can transfer your credit card account to.
Debt-free people can use credit cards to their advantage
One way to save money is to use a credit card that offers cashback rewards. For example, the Chase Freedom card offers up to 5% cash back on up to $1,500 in spending each quarter on categories like dining, travel, and shopping. So, if you were to use this card for all of your spending, you could save up to $75 a month. Another option is to use a card that offers bonus points for travel-related purchases. The Chase Sapphire Preferred Card, for instance, offers double points on all travel-related spending. This could add up to a lot of savings if you frequently book flights and hotels. Finally, another way to save money with a credit card is by using one that has no annual fee.
Once you have tackled the credit card debt it is time to kickstart your emergency fund. Your goal here is to get to a three-month emergency fund as soon as possible.
In conclusion, there are many ways to save money. It is important to find what works best for you and to be mindful of your spending. With a little bit of effort, you can save money and improve your financial situation.
Let us know if you have a secret way to save by commenting below. Help support the community by sharing
Thanks for the great information. Jumping through the hoops to get our first property we can call our own has been difficult.