If you are looking for a "magic formula" then all I have to say is Good Luck! You are going to have to focus and discipline yourself to make this work!
THIS TAKES STRICT DISCIPLINE!
The best to advise you of are the following short & simple tips:
1) Divide your finances into 3 sections!
- One third for expenses- One third for savings and investments
- One third for enjoyment
If you apply this, you should never have money problems.You may have to "tweak" this module a bit at first but get it to were your finances finally get to equal thirds!
2) Spend Less money
- Yes this is the hardest of them all, but possible. Get out of debt of all possible. Interest rates kill people and some of them don't even know it!
3) Your Home
- Again, interest rates really kill people and they either don't know it or don't care about it. For a lot of people, a house is the biggest thing you will ever purchase! No one adds in the extra costs of maintaining their home. Try this: when possible, pay an extra $25 - $100+ more on your house payment. It will save you, especially in interest, in the long run!
4) Credit Cards
- Credit cards are BAD! Trust me, been there and done that! Why else do you think America is in the crisis that it's in now?! We went through a HUGE credit spending boom several years ago and we are still paying for it. Don't bye with your eyes but your mind. Remember, interest will kill you! Interest charges on top of interest charges only get bigger. Next thing you know, your paying for ONLY interest!5)Lights & Electric Bills
Buy the new LED lights. They use way less electricity, last longer and will save you in the long run.
Cut cost on your electric bill! SHUT OFF THE LIGHTS IN THE ROOMS OF YOUR HOUSE THAT YOUR NOT USING! Something so simple as that, yet I walk into people's houses and they still are doing it. All I see when I look at that is dollar bills falling from the ceiling.
6) Hot Water Heater
If you go on vacation or out for a holiday, turn it off! Ideally get a timer installed, as it doesn't have to be on 24/7 to work. You could save up to 30% on your electrical bill also. A solar geyser or water heater will pay for itself within a few years.
7) Cut food costs
If you impulse buy, you will spend more! Plan meals for the week and make a shopping list so that you only buy what you need. You will be amazed at how this cuts down your food bill. Stop the ready microwave meals. Rather buy the ingredients fresh and learn to become creative in the kitchen.
8) Sell your junk
If you haven't used it in the last 6 months, odds are you won't use it again. Sell it in a garage sale. What don't sell in the garage sale, then sell online. So what if it only brings in a couple of dollars, that is still more than what you started with.
9) Buy used
Many are as good as new for half price! If you really want to save money, you need to look at all options. Shop & look around! Go down to your local thrifty store, who cares what people think and don't worry about what people are going to think about you, YOU ARE SAVING MONEY!!
10) Do it yourself
With the internet these days there are so many videos on Youtube, on DVD, on anywhere that will teach you everything you need to know about home maintenance or anything that you have to fix. Enhance your own skills and learn from these materials. If you feel you have no talent, such as myself, find something you are good at and offer this as a trade off to a friend who needs what you have, and get him to do the practical stuff for you. For example, my brother & I do this all the time! We know that each other are good at certain things the other one is not good at, so we trade! STOP competing, rather work together and it saves you money in the long run!
11) Convenience Stations/Gas Stations
They are called convenient stores for a reason. You pay for the convenience and therefore are more expensive. Shop at your local supermarket instead. Over a period of a year this is quite a savings.
12) Learn to say, "NO"
Especially Mothers, tell your children NO! It's not hard. Let me say this, I have been told NO all my life and I am still living! So it won't kill them if they don't have it.
13) Shop for value
Shop for value and not what's "in"!
14) Impulse Shopping
BE AWARE, there are people that try to get your to shop this way. It's so you will buy their product. Been there & done that also. It was, at one point in time, a job of mine to get people to buy on impulse. If you don't need it, don't buy it! If you are in doubt, use the '4 day rule'. Wait 4 days and do price comparisons, odds are after 4 days you may not want the item anymore. USE COUPONS! Extreme coupons is a great way to save money, also sometimes you can get an item or two for free!
15) Use your lunch hour
An hour a day equals 7 hours per week. Do you waste your lunchtime to do stuff you would normally do in your spare time? Use this time to study, research, sell stuff on the internet!USE YOUR TIME WISELY & PRACTICE TIME MANAGEMENT!
16) Medicines/Medications
If have to buy medications MAKE SURE YOU BUY THE GENERIC MEDICINES. They work just as good as the name brand, your just not paying for the name! Ideally go to the herbal store. It is not so invasive, doesn't usually have side effects and is surprisingly inexpensive in comparison to the name brand medications.
17) Eat Healthy and watch what you know you eat
Prevention is better than a cure. If you eat right and prevent medical visits & procedures then it will save you huge unnecessary medical cost in the future!
18) Take and make money out of a hobby
I know people who have made a career out of their hobbies. They started with something small and identified a need in the industry, and off they went with their idea.
19) Shop Online
This is one of my favorite things to talk about! I will say this real fast, I just recently bought an item with a much needed accessory and if I would have went into the store and bought everything I need it would have cost me about $900 and I walked away with what I needed also being able to get it personalized and the NEWEST item (instead of what they had on the store shelf) all for under $717 (which was my budget). Shop online and compare prices. Look for discount coupons for the item you are buying on the internet. Also known as promo codes! They are worth it! Shop online for the things that you have to absolutely have to have new!
20) Save Money
If anything, your main plan must be to put money aside regularly. Just put a minimum amount away in a savings account, so it can obtain interest rates, every week! You will be surprised at how quickly it adds up. Create it into, or make, it "appear" as another bill you have. Figure in your savings account as a bill and add to it every week or every other week from each paycheck! BUT STICK TO IT!
21) Spending Money
Remember to only buy what you need! Buy only things that will benefit you in the long run. Example of that is solar energy. There are many things you can purchase that will help you save money and allow you to put more money away. Also research the best places to invest your money. NO, I am not saying the stock market but look around and check into savings accounts and their interest rates. My bank provides a list of account types and interest rates that they have at that time. Go in and talk with a member of your bank and see what they can do for you!
WHATEVER YOU DO, DON'T SPEND YOUR MONEY THAT YOU HAVE IN SAVINGS!
Remember, it has nothing to do with how much you earn, but with hoe much you save after you have paid your expenses. Also, make your focus on disciplining your self to make your priorities on a 'need to have' items, rather than 'nice to have' items.
It's not difficult, it just takes discipline!
