Simple Ways to Instantly Save Money

 Many years ago, I found my younger son quietly working on a legal sized pad of paper working out some figuring with his calculator. When I asked my twelve-year-old what he was doing, he explained he was trying to figure out how to become a millionaire by the age of thirty. He explained his process, starting with the end in mind and using the magic of compound interest, that was paramount to the success of his plan. He also explained that living simply would allow him to save more money than he spent...bringing him closer to his goals.

Here are three ways I have learned to have more money:

• Earn More
• Save More
• Sell Things

 Saving money isn’t just about socking it away for a rainy day. Saving money has to do with being conscious of spending, looking for waste, and being proactive with regards to saving. It begins with paying yourself first, and the easiest way to do this is to have automatic savings set up with your employer and bank...so you don't even see or miss the amount of money earmarked for savings. Keep a record of every penny you spend, every check you write, and every credit card swipe...it all adds up.

 Let’s take a look at some easy-to-do and simple ways to instantly save money:

 Review your contracts- A lot of your monthly expenses are automatic and billed monthly. Your phone service, internet service, cable service, pest control, garbage service, all forms of insurance, and more. These are all negotiable. Make sure to connect with your providers as often as every six months to make certain you are getting the best rates for your usage and family status. Often times, there are incentives or options that aren’t offered automatically. I put a date into my calendar to remind me to call and inquire about incentives and bundles. Many companies now offer bundles of services that can save you money.  It is up to you to negotiate and start the conversation; invest the time in calling and asking for discounts, this includes lowering interest rates on credit cards.  You can save hundreds of dollars this way.

 Assess your services- Be honest and frank about the services you use. Do you really need them? Hundreds of dollars can be saved by cutting back, cutting out, or changing your services. If you aren’t watching every channel on your television package, you may not need the all-inclusive package. Change the size of your garbage can and save on monthly pick up rates. Do you need a home phone or will the cellphone be enough? Consider machine washable clothing and save money on dry cleaning. Instead of eating out for lunch, brown bag it. I often bring leftovers for lunch the next day. Simple changes all add up to big savings.

 Hire your kids or a neighborhood kid- Some of the services you are paying for can be done by someone younger and for cheaper. If you pay for housekeeping or lawn services, you may be better off hiring a local teen or your child. Teaching entrepreneurship and a way to earn an honest dollar is a great way to invest in kids, show them the value of working, and save yourself some money. 

 Fast- Try taking a break from some spending. Fast for a week, two weeks, or 21 days and see if you can live without the item or service. If you can, make a permanent change and consider the money you are saving for something you’ve really wanted to do. Give up your daily coffee habit and use that money for an annual vacation. A daily $5.00 coffee habit is equal to $1825.00 annually. That money will buy a flight and car rental for most domestic locations.

Don't carry balances - It's important to pay off bills and credit cards each month to avoid interest and/or penalties. Being a good steward of your money will also keep your financial health in order and protect your credit score. If you have more credit cards with carry-over balances, make sure to pay down the debt as quickly as possible. One method is to pay extra principal payments on the highest interest rate cards while only paying the minimum on other cards. Once the highest interest rate cards are paid off, use the funds to pay towards the principal of the next card. 

Add a second income- If your schedule permits, add a temporary part-time job. Comedian Jay Leno once said that he always worked two jobs so that he could save the higher of the two checks and live off the smaller one. This was his plan to become a millionaire. So even when he was at the height of his career and hosting "The Tonight Show," he continued to perform on the comedy circuit for about 150 gigs per year. He lived off the money he earned doing comedy and never touched his earnings from "The Tonight Show." 

 If you want to make a fresh start saving money, you can see instant success by taking some simple steps to reduce and eliminate spending. Have fun and make a game of it...see if you can save more each month. If you get a raise at work, add that to your savings plan and continue to live within your original budget. Perhaps you have family members or friends that would like to play, too...see who can save the most in one month; you’ll be amazed at how much money you can save.

Cheers!

Lisa