Top 10 Steps to Saving Money

We would all like to have more money in our savings account – there’s no denying that.  But how can we make it happen? There are little changes you can make that will add up if you stick with it. Personally, I followed this top 10 steps to saving money.

I have found the best way of saving money is to set a goal. My job requires I utilize Microsoft Excel so this is easy for me.  But if you have any type of spreadsheet application on your computer you can use it.

Step 1:  Document your goal!  In your spreadsheet – type what your goal is for saving this money.  Then add what you will do with the money once you achieve the goal. If you think it will help enter a few words about how you will feel once you reach your goal, proud…encouraged to save more….etc.

Step 2:  Write up your plan to save the money.  What will you give up or sacrifice to meet this goal? This part is amazing to me because some people think that stopping at Starbucks each day or a few days a week is a necessity.  

I stop at Starbucks when I’m traveling for work or I’m on vacation. Starbucks is a treat for me and I like it that way. I make coffee at home daily and I have an espresso maker that I use on weekends.  So I spend about $70 cents a day during the week and $2-$3 a day during the weekend for my espresso.

I don’t need to tell you how much more it is at Starbucks, we all know what it costs to get coffee there and that’s if you say no to all the bakery items!  

Back to Step 2:  Can you give up making vending machine purchases?  Take your lunch to work each day? Eat out less during the week and weekend?  How about a few meals without meat?

During my divorce, I had zero money for groceries.  I remember having to ask my parents if I could borrow $50 for groceries. The kids and I lived on peanut butter sandwiches and meatless spaghetti.

 And guess what – we still love peanut butter and spaghetti. We all look back on those days and realize it was a price we were willing to pay for our freedom.  It’s all in how you approach it with your kids.

I made it a positive thing and the kids look back and feel the same way. We laugh about it and think fondly of those days when we were learning a new life.

Step 3:  Commit to this plan but letting others know you are doing it – that makes it real and accountable.  You aren’t going to tell people about it and then fail – right? You don’t have to share all the details but let a few people know so in case you think of slipping while shopping – you have a friend there to pull you back to reality.

Step 4:  Cut out the extras that you don’t really need.  I recently became alarmed at what I was spending at Amazon each month.  The first thing I did was go change my Subscribe and Save to things that I really can’t get for less anywhere else.  Check Jet.com and Walmart.com (ewww – I know) because these are two companies that are jumping at the chance to beat Amazon’s prices.

It takes a little homework but you can comparison shop online easier than going to the stores to comparison shop.

Another place to cut cost is all the automated billing that hits your debit or credit card each month. If you have monthly subscriptions to Netflix but you aren’t using it – cancel it! If you are getting Birchbox and you aren’t seeing the benefit of spending that $10 each month – cancel it!  Today we see these subscriptions for everything – even Fabletics!

The responsibility is on you to ensure you are getting the benefit of these subscriptions.  Take a good hard look at your statements – you may be surprised how much money is being spent each month on these types of things that aren’t necessary.

Something else to look at – insurance.  I had a boss who was always telling us to go ahead and switch to a higher deductible and pay less for car and homeowners insurance.  If you take the money you’re saving on having a higher deductible – you can save up and keep that deductible in savings in the event you ever need it.  Doing this long-term makes sense because you will save significant money each year over having that low deductible.

Step 5:  Take a few minutes each day to look at your progress on your spreadsheet file.  How are you doing? Can you do more? Are you on track to meet your goal? What would it take to exceed your goal?  By taking time out each day to think about it – you will be less likely to spend money that should go into your savings because you are accountable.

Step 6: Are there ways you can make extra income to help meet or exceed your goal?  Sometimes we have extra “stuff” sitting around that could easily be sold for cash. Some examples: last year’s designer purse you just had to have, clothing, shoes, electronics, furniture, household items, and kitchen electronics.  Setup an account on EBay and sell that crap. It’s not doing you any good in your closet! Plus it will help you to meet or exceed your goal!

Step 7: Take on extra work or side hustle.  This is becoming more and more common. Back in the 80s and into the 90s it wasn’t unusual to have a part-time job in addition to a fulltime job.  Now it’s trending again so don’t be weird or embarrassed about it.

There are too many ideas to write in here but there are a ton of part-time jobs depending on your skills.  Just to name a few – bartending (probably not a good idea if you have a family), photography, cleaning, pet sitting/walking, tutoring, Uber/Lyft driver, caregiver, handyman, and event planner.

Okay – I know those were all over the place but it’s just to name a few and maybe jog your memory of something you can do to earn some extra cash.

Step 8:  Stop eating out so much!  A year or so ago my daughter and her husband took a look at their finances to see where all their money was going.  Come to find out they were spending between $250-$300 a week on eating out. That’s around $1200 a month! Now they just eat out maybe once a week and do carry out once a week.  

Just doing carry out can save you money if you pick it up yourself because you don’t order drinks with takeout (or you shouldn’t) and you don’t have to pay taxes (in some states) or a tip.  My daughter loves to cook so it was crazy that she wasn’t doing it.

You can also sign up for a meal plan service such as CookSmarts.com. They only charge $6-$8 per month and you can personalize your menu each week according to your preferences.  This is a great way to plan ahead because the meal service also creates your shopping list for the week.

It’s so easy and they let you try it for 3 weeks for free to see if it will work for you and your family. Yes it’s a subscription service but if you are one of those people who says every night – what can I make for dinner – I highly encourage you to check it out.  Also, you can cancel it at any time, no contract.

Step 9:  Take your cell phone bill and either go into the store or call them.  There have been radical changes to the cell phone data plans at all the carriers.  We recently went and for less money per month, we were able to switch all the lines (that’s 6 lines in all) to unlimited data.  Just set aside an hour and do it – you will be glad you did!

Step 10: Don’t carry cash or credit cards, only your debit card.  This way you will only spend money you actually have available and you will be less likely to spend it if you don’t have it.  Only keep your credit card for emergencies or for travel.

I want to encourage everyone to keep a separate credit card for online use.  There are so many scams and this is a rule I have followed since online shopping started.  I have a Paypal account that I use whenever it’s available. If it’s not available – I use the same credit card my Paypal account uses where I earn cash back on every purchase.  

I review my online account every week and make sure there are no charges I don’t recognize. My Paypal account alerts me every time I use my Paypal account. This way in the event of my credit card number being stolen – I would know right away.  

I have been told by several professionals in the banking industry that you should never use your debit card online because they don’t have the same protection as a credit card. If your money is taken out of your account via a debit card – you are less likely to get the money back if it’s a stolen card.  

Hopefully, this list has helped you think outside the box on saving money/spending less money.  We all face financial crisis at points in our life – save this so you can come back to it later as you need it. Best of luck to you in all money matters!