25 Money Saving Tips You Can’t Afford to Ignore
Today, I want to share how you can save up to $500 every single month using these 25 money saving tips you can’t afford to ignore (pun intended).
When it comes to gaining financial independence, we often expect earning more money is the only (or main) solution.
But, usually, there is no point in earning more if that cash dwindles by the end of the week because we didn’t spend and save wisely.
These money saving tips are simple but they have saved me hundreds of dollars a month. These strategies helped me overcome my not-so-great spending habits.
So if you take these actionable steps, it is possible to save hundreds of dollars every month.
There are a million ways to save money but today I want to focus on grocery and clothing. I find these two areas of spending are worth paying attention to if you are to save at least $500 a month.
25 Money Saving Tips You Can’t Afford to Ignore
1. Set an allowance
This is the number one habit that saves me a lot of money and it doesn’t apply only to purchasing clothes. As soon as you hit payday, set aside an amount of money that you will use for clothing, entertainment, takeout, and stick to it.
Setting a specific amount of money in this way is simple and do-able. Here is one way to do this.
2. Rent out clothes for special occasions
I tend to move away from buying expensive pieces of clothing if I know I’m not going to wear it more than once.
If you know you’re not going to wear that expensive evening dress after one use for a formal event, it might be wise to rent it out at a much lower cost.
3. Sell clothes that you no longer wear
If it’s just been hanging in your wardrobe for possible use “in future”, be honest about whether you’re ever going to wear it again. Selling it will de-clutter your wardrobe and help you focus on what you actually need to buy. Plus, you can make extra money from something that you were never using anyway.
4. Avoid buying just because it’s on sale
When your goal is to save more money, going shopping should be a planned event. Shopping should not be about looking for a sale but rather about buying what we need.
It is all too easy to get caught up in the “sale” hype (I’ve been there!) and end up buying what we don’t need just because we saw it marked down to 40% off.
5. Try a capsule wardrobe
A capsule wardrobe enables you to buy clothes that work well together. Try going for neutral colours and a few accent colours.
And focus on buying a few good quality items that you will wear for months to come, even if it means paying a bit more.
Building a capsule wardrobe can help you plan your clothes and buy fewer items thanks to the positive benefits of a well-organized wardrobe.
6. Take care of your clothes
I’m guilty of not following washing instructions on my clothes. For example, denim tends to stretch and wear out when frequently washed. Take care of it when you wear it and be reasonable about how often you throw it into the washing machine.
7. Invest in good quality pieces
When it comes to saving money, we often buy from discount stores to save. But it can be counterproductive if we end up with clothes that won’t stay intact after a couple of wears.
You may have only paid $20 for that shirt but you will be going back to the shops to buy another one in a few weeks if it doesn’t wear well.
So we actually end up spending more buying multiple cheap clothes only to replace them after a couple of wears.
8. Don’t buy clothes based on your ideal size
I have heard of women buying smaller sized clothes just to keep themselves motivated to lose weight. You may reach that goal and be able to wear those clothes but why risk wasting money.
Instead, reward yourself with a favourite piece (of the right size) after you reach your ideal weight.
9. Buy out-of-season
You will be able to source plenty of sales towards the end of a season whether it be during summer or winter. You can then keep it stored away for the right season.
Hey, if you can get that gorgeous coat for half price or less, and you know you will need it in winter, why not buy it and keep it?
As long as you know you absolutely love it and you’re not buying it just because it’s on sale (see point #4).
10. Never go grocery shopping when hungry
It’s almost inevitable that you will end up buying more snacks when you grocery shop hungry.
11. Choose the right cart or trolley
Try to go for the smaller cart or trolley especially if you know you’re not buying many items. It’s more of a psychological thing – the more space in your trolley, the more likely you’re going to purchase to fill it up.
12. Read the label
Compare prices based on how much it costs per kg/g/ml etc. A 200g block of cheese might be on sale but it may still work out to be cheaper to buy a 400g pack in a different brand (even though that’s not on sale). Value for money – that’s where it’s at.
13. Buy generic
Not all generic food is tasteless and also doesn’t necessarily reflect poor quality as some would have you believe. Try some generic brands or look for sales even if they are different brands to what you normally buy.
Most of the time, it’s a money wasting habit to stick to one popular brand – and that usually is because we have seen it advertised and glorified, to the point where it becomes second nature buy it.
Besides, if you or your family end up disliking that particular brand, you can always switch to your name brand or (whatever your favourite is).
14. Buy non-perishables in bulk when on sale
Buying non-perishables in bulk when they are on sale is one of the best ways to save money, simply because you know you will use them eventually. Again, be aware of cost per unit of measurement.
15. Take advantage of reward cards or coupons
This is a no-brainer. Look at what’s on offer at different supermarkets and choose to shop with the one offering good deals.
16. Track your spending
This is so important. Allocate a monthly grocery allowance and then track your spending as it happens. Tracking your spending for the month either on an app, on your smartphone or notepad is crucial to keep track of your spending. It helps you put the brakes on your spending before you actually overspend.
17. Shop less frequently
The longer you can hold out to grocery shop, the better for your wallet. I say this because every visit to the supermarket usually involves buying an extra item or two even when it’s not on our list (did I mention you should always have a shopping list with you?).
Generally, I find I save more when I stretch out my shopping to at least fortnightly. Oh and here is a great shopping list app if you’re interested.
18. Use up what’s in your pantry first
Before you rush to the shops, stop! Why not try to cook with whatever ingredients you can use from your pantry and refrigerator?
Usually, we have a new recipe idea or something particular we want to cook but have to go buy a few more ingredients for it. That’s a sure fire way to overspend.
Use what you have first. This helps eliminate the possibility of wasting food (and money!). It will make it easier to stretch out the time between supermarket visits.
More money saving tips
19. Set up automated deposits
Deposit money into your savings and automate it to, say, monthly or fortnightly (preferably every payday). This really is one of the best ways to save.
It requires little willpower since it happens automatically. Plus, you get to pay yourself (save money) before you spend it elsewhere.
20. Review your service providers regularly
This includes insurance, gas and electricity, internet and phone etc. It is so much easier to go with the flow and pay the same bills every month with little thought or just get too busy to think about it.
But let me tell you, it is worth your time and effort to look for the best deals and change providers as needed. You may just be surprised at how much you can save by doing so.
21. Give thoughtful gifts
And by that I mean, make something beautiful to give your children, family or friends for special occasions like birthdays.
There are so many DIY gift ideas out there. You will save money and the thought you put into making the said gift will mean a lot to them.
22. Invite your friends over
Ever thought of how much you spend at cafes and restaurants in a given month with your friends? This is something we probably don’t account for in our spending but it adds up. Next time you’re catching up with your friends, why not invite them over for an afternoon tea or lunch instead?
23. Plan ahead of foreseeable life events
If you have some major life event approaching such as a new baby or any other major change that will impact on your finances, plan ahead and start saving towards it now.
Thinking about how you are going to cope with those changes and budgeting ahead of time is the best way to avoid debt later on.
24. Take lunch to work
I know it sounds simple, but this saves you $7-$15 or more every time, depending on what you buy at work.
If you spent $10 buying lunch almost every day (say, 200 out of 365 days), you would easily spend $2000 in one year.
To make it even easier, try cooking extra every time you cook and freeze some meals for later.
25. Review your monthly subscriptions
Whether it’s a gym membership or cable, if you’re looking to save some serious cash, think about cutting out subscriptions and memberships first.
Can you perhaps cut out cable or downgrade your plan? Do you really need or even still use that gym membership? There are so many ways to fit in exercise without a gym membership.
There you have it. 25 simple money saving tips you can’t afford to ignore. I have found these strategies to be the easiest way to save a lot of money without feeling deprived.
Have you got any more money saving tips up your sleeve? I would love to hear them.
You Might Also Like:
Pin It for Later!